Cash Budget
The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information:
Sales | |||
April | $ 450,000 | ||
May | 580,000 | ||
June | 900,000 | ||
July | 1,140,000 | ||
August | 1,200,000 | ||
September | 1,134,000 |
Required:
Prepare a cash budget for July. Give a supporting schedule that details the cash collections from sales.
Feinberg Company | |
Cash Budget | |
For the Month of July | |
Beginning cash balance | $ |
Collections: | |
Cash sales | |
Credit sales: | |
July: | |
With discount | |
Without discount | |
June | |
May | |
Sale of old equipment | |
Total cash available | $ |
Less disbursements: | |
Raw materials: | |
July | $ |
June | |
Direct labor | |
Operating expenses | |
Dividends | |
Equipment | |
Total disbursements | $ |
Minimum cash balance | |
Total cash needs | $ |
Excess of cash available over needs | $ |
Ending cash balance | $ |
Feinberg Company | |
Cash Budget | |
For the Month of July | |
Beginning cash balance | 27000 |
Collections: | |
Cash sales (40% x $1140000) | 456000 |
Credit sales: | |
July: | |
With discount (1/2 x $1140000 x 60% x 45% x 98%) | 150822 |
Without discount (1/2 x $1140000 x 60% x 45%) | 153900 |
June ($900000 x 60% x 30%) | 162000 |
May ($580000 x 60% x 25%) | 87000 |
Sale of old equipment | 25200 |
Total cash available | 1061922 |
Less disbursements: | |
Raw materials: | |
July | 156000 |
June | 148200 |
Direct labor | 105000 |
Operating expenses ($376000 - $45000 - $6000) | 325000 |
Dividends | 130000 |
Equipment | 173000 |
Total disbursements | 1037200 |
Minimum cash balance | 20000 |
Total cash needs | 1057200 |
Excess of cash available over needs | 4722 |
Ending cash balance | 24722 |
Working:
Raw materials:
April | May | June | July | August | |
Cost of goods sold (26% x $900000);(26% x $1140000);(26% x $1200000) | 117000 | 150800 | 234000 | 296400 | 312000 |
Add: Desired ending inventory | 150800 | 234000 | 296400 | 312000 | |
Total needs | 267800 | 384800 | 530400 | 608400 | |
Less: Beginning inventory | 150800 | 234000 | 296400 | ||
Purchases | 234000 | 296400 | 312000 | ||
Paid in July (50% x $296400);(50% x $312000) | 148200 | 156000 |
Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for...
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