Question

E22-28 (book/static) Marcel Comiparry häs prepared re tolowing achedues and addonal informson B Ckex the licon to vnw the csh vecs scheam) ie the on to wew the cash payments sched o 0cek ฐาย icon to view the, iddionainformason.) Complete a cash budget for Marcel Company for Jaruary, February and March.IComplete al anower boass a oash defioeny th a minus sign or paratheses J Reterenc Narcal Company Cash Budget January, February, and March January Fatruary March Total Cash Paymenas Begrning cash baunce Direct Materials: 5 3,100 Purchases of dinect Dinect labor Reterence Tetal payments for direct materials Seling and adisrative expenses Cash Receipts trom Customers Total payments for direct laber FebruaryMch 5 11,200 12.300 11100 34,00 Ending cash balaros befera f nnon anuary Febnary Narch alanca desired Property taxes on plant Total paymems for manufacturing overmead 2400 ,700 h Receipts from Customers Recaivbl balañoa, January 1 t aiss, cabacton of January soles n Selling and Adminatrative Expenses Pencipal repaymerts uary Gredt sales. collection of January sales in Feenaary $ 2240 Total offects of fnancing Propety taves on ofoe 2.040 t sales, co lecton of February aalas in Febuay 5 2460 Total payments for Seling and Admin. expensen More Info MarchCa asles S 11,240 11,000 11,500 33740 Marters beginning cash bolance $5,000 and Marcel deeines to maintan a tegming of each monh in inoements of $1,000 and repays the amous va labie. The Total cash paymants Aocoou baances, March 3t Propa d Prepurty Tacea Acmounts Payable Us nes Payable eipts trom customers 3,33 Accounts Receivable balance March 31 4,000 amounts borrowed is 8% per reo. tte beginning of he month on he urstancing bac from the previcurs mant Print Dona

Answer 1

	CASH BUDGET
			January	February	March
	a	Beginning Cash Balance	5000	5720	5780
	b	Cash Receipt	8960	12080	11340
	c=a+b	Cash Available	13960	17800	17120
		Cash Payments:
	d	purchase of direct material	0	3100	3500
	e	Direct labor	3300	3500	3600
	f	Manufacturing Overhead	2400	650	650
	g	Selling & admin.overhead	5540	3750	3750
	h	Interest expense		20	13	February interest=3000*(0.08/12):March interest=2000*(0.08/12)
	i=d+e+f+g+h	Total Cash Payments	11240	11020	11513
	j=c-i	Ending balance before financing	2720	6780	5607
	k	Minimum cash balance desired	5000	5000	5000
	l=j-k	Projected excess(deficiency)	-2280	1780	607
		Financing:
	m	Borrowing	3000	0	0
	n	Principal repayment	0	-1000	0
	p=m+n	Total effect of financing	3000	-1000	0
	q=j+p	Ending Cash balance	5720	5780	5607