Question

Use the following information to prepare the September cash budget for PTO Co. The following information relates to expected cash receipts and cash payments for the month ended September 30.

1. Beginning cash balance, September 1, $47,000.
2. Budgeted cash receipts from sales in September, $258,000.
3. Raw materials are purchased on account. Purchase amounts are August (actual), $76,000, and September (budgeted), $108,000. Payments for direct materials are made as follows: 65% in the month of purchase and 35% in the month following purchase.
4. Budgeted cash payments for direct labor in September, $35,000.
5. Budgeted depreciation expense for September, $3,800.
6. Other cash expenses budgeted for September, $51,000.
7. Accrued income taxes payable in September, $10,700.
8. Bank loan interest payable in September, $1,400.

LU utuyeleu lui September, $51,000. g. Accrued income taxes payable in September, $10,700. h. Bank loan interest payable in September, $1,400. Hint Print PTO MANUFACTURING COMPANY Cash Budget For Month Ended September 30 Beginning cash balance Cash receipts from sales Total cash available Cash payments for: Direct materials Direct labor Other expenses Accrued taxes Interest on bank loan Total cash payments Ending cash balance

Answer 1

Cash Budget

Beginning Cash balance	47000
Cash receipt from sales	258000
Total cash available		305000
Cash payment for
Direct material	96800
Direct labor	35000
Other expense	51000
Accrued income tax	10700
Interest on bank loan	1400
Total cash payments		194900
Ending Cash balance		110100