Question

i Reference Marlin Company has prepared the following schedules and additional information: (Click the icon to view the cash receipts schedule.) (Click the icon to view the cash payments schedule.) i (Click the icon to view the additional information.) January February March Total Complete a cash budget for M More Info Cash payments: Purchases of direct materi Cash Payments Direct Materials: Accounts Payable balance, January 1 January-Direct material purchases paid in February February-Direct material purchases paid in March Direct labor $ 3,400 Marlin's beginning cash balance is $9,000 and Marlin desires to maintain a minimum ending cash balance of $9,000. Marlin borrows cash as needed at the beginning of each month in increments of $1,000 and repays the amounts borrowed in increments of $1,000 at the beginning of months when excess cash is available. The interest rate on amounts borrowed is 13% per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month. Manufacturing overhead Selling and administrative $ 3,700 3,700$ 3,400 7,100 Total payments for direct materials Interest expense Direct Labor: Total cash payments Ending cash balance before fi Print Done Total payments for direct labor 3,300 3,400 4,100 10,800 Minimum cash balance desired Manufacturing Overhead: Projected cash excess (deficiency) Financing: Borrowing Utilities for plant 750 750 1,500 3,600 Property taxes on plant Total payments for manufacturing overhead 3,600 5,100 Principal repayments 3,600 750 750 Total effects of financing Selling and Administrative Expenses: Ending cash balance

Answer 1

Sno January February March Total 90001 118201 15520 36340 9720 11250 11120 32090 18720 23070 26640 68430 3400 3700 4100 3400 3300 3600 7100 10800 5100 750 750 CASH BUDGET Particulars 1 Beginning Cash Balance 2 Cash receipts 3 Cash Available(1+2) Cash Payments 4 Purchases of direct Materials 5 Direct labour 6 Manufacturing overhead 7 Selling and administrative overhead 8 Interest Expense 9 Total Cash Payments(4+5+6+7+8) 10 Ending Cash balance before financing 11 Minimum cash Balance desired 12 Projected Cash excess ( defficiency)(10-11) Financing 13 Borrowing 14 Repayments 15 Total effects of financing 16 Ending Cash balance (11) 6900 11820 9000 2820 7550 15520 9000 6520 8550 18090 9000 9090 23000 45430 27000 18430 11820 15520 18090| 45430