Question

Yosko has $14,500 in cash on hand on January 1 and has collected the following budget data: (Click on the icon to view the budget data.) Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yosko has cash payments for selling and administrative expenses including salaries of $55,000 per month plus commissions that are 2% of sales, all paid in the month of sale. The company requires a minimum cash balance of $15,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yosko need to borrow cash by the end of February? input boxes. Enter a "O" for any zero balances. Round all Begin by preparing the cash budget for January, then prepare the cash budget for amounts entered into the cash budget to the nearest whole dollar.) Yosko Company Cash Budget Two Months Ended January 31 and February 28 January 14500 Beginning cash balance Cash receipts Cash available Cash payments:

Answer 1

Particulars				January			February
Beginning cash balance				$   14,500.00			$   20,938.00
Cash receipts				$ 443,000.00			$ 502,400.00
Cash available				$ 457,500.00			$ 523,338.00
Cash payments:
Purchases of direct materials				$ 180,856.00			$ 160,892.00
Direct labor				$ 135,130.00			$ 112,876.00
Manu. OH				$   54,976.00	($ 55876 - $ 900)		$   52,978.00
Selling and Adm. Expenses				$   65,600.00	(W.N)		$   66,380.00
Total cash payment				$ 436,562.00			$ 393,126.00
Ending cash balance before financing				$   20,938.00			$ 130,212.00
Minimum cash balance desired				$   15,000.00			$   15,000.00
Projected cash excess (deficiency)				$     5,938.00			$ 115,212.00
Financing:
Borrowing				$                 -
Principal repayments				$                 -
Total effects of financing				$                 -
Ending cash balance				$   20,938.00

Yosko doesn't need to borrow cash by the end of February

W.N

Commissions	$ 10,600.00	($ 530000 x 2%)
Salaries	$ 55,000.00
	$ 65,600.00

Is this okay?