Question

Use the following information:

1. Beginning cash balance on March 1, $72,000.
2. Cash receipts from sales, $304,000.
3. Budgeted cash payments for direct materials,$140,000.
4. Budgeted cash payments for direct labor $79,000.
5. Other budgeted cash expenses, $37,000.
6. Cash repayment of bank loan, $14,000.

Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31.

	GADO COMPANY Cash Budget For Month Ended March 31 Total cash available Cash payments for: Total cash payments 0 $0

Answer 1

Solution

GADO COMPANY
Cash Budget
For Month Ended March 31
Beginning cash balance	$ 72,000
Cash receipts	$ 304,000
Total cash available		$ 376,000
Cash payments for
Direct material	$ 140,000
Direct labor	$ 97,000
Other expenses	$ 37,000
Repayment of Bank loan	$ 14,000
Total cash payments		$ 288,000
Ending cash balance		$ 88,000