FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Use the following information to prepare the September cash budget for PTO Company. Ignore the "Loan activity" section of the
budget
a. Beginning cash balance, September 1, $49,000.
b. Budgeted cash receipts from September sales, $257,000.
c. Direct materials are purchased on credit Purchase amounts are August (actual), $70,000; and September (budgeted). $101,000.
Payments for direct materials follow. 65% in the month of purchase and 35% in the first month after purchase.
d. Budgeted cash payments for direct labor in September, $40,000.
e. Budgeted depreciation expense for September, $3.100.
f. Budgeted cash payment for dividends in September, $50,000.
g. Budgeted cash payment for income taxes in September, $10,200.
h. Budgeted cash payment for loan interest in September, $1,600.
PTO COMPANY.
Cash Budget
September
Beginning cash balance
Total cash available
Total cash payments
Ending cash balance
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