Financial Budget Assignment | Top Universities

Preparing a financial budget-cash budget Learning Objective 4 Booth has $12.500 in cash on hand on January 1 and has collected the following budget data: January February Sales $ 529,000 S 568,000 Cash receipts from customers 443,000 502,200 Cash payments for direct materials 180,624 160,284 purchases Direct labor costs 135,010 113,348 Manufacturing overhead costs (includes depreciation of $900 per month) 55,058 53,922 1) Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Booth has cash payments for selling and administrative expenses including salaries of $40,000 per month plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $20,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Booth need to borrow cash by the end of February?

2) The following are some of the components included in the master budget of a merchandising company. a. Budgeted balance sheet b. Sales budget Capital expenditures budget Budgeted income statement Cash budget Inventory, purchases, and cost of goods sold budget g. Selling and administrative expense budget List the items, by using the letters only, of the master budget in order of preparation. Total BOOTH COMPANY Cash Budget For the Two Months Ended February 28 January February Beginning cash balance Cash receipts Cash available Cash payments: Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Financing: Borrowing Principal repayments Total effects of financing Ending cash balance Booth will (a Manufacturing overhead costs, less depreciation of $900 per month Cash payments for S&A $40,000 + (1% sales) – expenses January: February: SOLUTION 2 Order of preparation (just use the letters) — Get Accounting Homework Help Today.