Question

Reference - X Reference Cash Receipts from Customers January February March Total Total sales January February March $ 12,400 $ 16,100 S 11,100 S January February March Total 39,800 Total Cash Payments Direct Materials: Accounts Payable balance, January 1 January-Direct material purchases paid in February February-Direct material purchases paid in March $ 3,100 $ 3,900 3,900 $ $ 9,920 Total payments for direct materials 3,100 7,000 1.240 Cash Receipts from Customers: Accounts Receivable balance, January 1 January—Cash sales January-Creclit sales, collection of January sales in January January-Credit sales, collection of January sales in February February-Cash sales February Credit sales, collection of February sales in February February-Credit sales, collection of February sales in March March-Cash sales MarchCredit sales, collection of March sales in March 1,240 12,880 1,610 Direct Labor: Total payments for direct labor 3,000 3,900 3,800 10,700 S 1,610 850 850 1,700 8,880 1.110 11,600 S Manufacturing Overhead: Utilities for plant Property taxes on plant Total payments for manufacturing overhead 2.400 Total cash receipts from customers 11,160 $ 15,730 S 2,400 2,400 38,490 850 850 4,100 Print [ Done Print Done Print Done

COMPLETE FOR JANUARY, FEBRUARY, MARCH, AND THEN TOTAL COLUMN. 4 COLUMN TOTAL.

Answer 1

Particulars	January	February	March	Total
Beginning cash balance(A)	$9,000	$14,760	$22,640	$46,400
Cash receipts(B)	$11,160	$15,730	$11,600	$38,490
Cash Available-C (A+B)	$20,160	$30,490	$34,240	$84,890
Cash Payments
Purchase of Direct materials	$0	$3,100	$3,900	$7,000
Direct labor	$3,000	$3,900	$3,800	$10,700
Manufacturing Overhead	$2,400	$850	$850	$4,100
interest expense				$0
Total Expense-D	$5,400	$7,850	$8,550	$21,800
Ending Cash before financing-E-(C-D)	$14,760	$22,640	$25,690	$63,090
Mininmum cash balance desired(Given)-F	$9,000	$9,000	$9,000	$27,000
Projected cash excess/(deficiency)-G-(E-F)	$5,760	$13,640	$16,690	$36,090
Financing :
Borrowing	$0	$0	$0	$0
Principal repayments	$0	$0	$0	$0
Total effects of financing	$0	$0	$0	$0
Ending Cash balance	$14,760	$22,640	$25,690	$63,090
Note: Since in all the three months closing cash balance exceeded mininmum requirement
of $9,000 and so borrowing is not required. Since there is no Old borrowings outstanding in
the given question and no repayment made.