Walter Company has the following information for the month of March: Cash balance, March 1 Collections from customers Paid to suppliers Manufacturing overhead Direct labor Selling and administrative expenses $ 18,870 45,000 24,000 7,800 9,100 5,900 Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $2,050 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $8,700 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $17,000. Required: Prepare Walter's cash budget for the month of March. Beginning Cash Balance Budgeted Cash Receipts Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed Ending cash balance
Walter Company has the following information for the month of March: Cash balance, March 1 Collections from customers Paid to suppliers Manufacturing overhead Direct labor Selling and administrative expenses $ 18,870 45,000 24,000 7,800 9,100 5,900 Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $2,050 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $8,700 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $17,000. Required: Prepare Walter's cash budget for the month of March. Beginning Cash Balance Budgeted Cash Receipts Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed Ending cash balance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Walter Company has the following information for the month of March:
Cash balance, March 1
Collections from customers
Paid to suppliers
Manufacturing overhead
Direct labor
Selling and administrative expenses
$ 18,870
45,000
24,000
7,800
9,100
5,900
Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $2,050 for machinery
depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to
buy a piece of property for $8,700 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum
cash balance of $17,000.
Required:
Prepare Walter's cash budget for the month of March.
Beginning Cash Balance
Budgeted Cash Receipts
Budgeted Cash Payments
Preliminary Cash Balance
Cash Borrowed
Ending cash balance
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