Walter Company has the following information for the month of March: Cash balance, March 1 $ 17,520 Collections from customers Paid to suppliers 40,450 23,100 Manufacturing overhead 6,900 8,650 5,000 Direct labor Selling and administrative expenses Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $1,600 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 $7,800 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $10,000. 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 4

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Walter Company has the following information for the month of March:
$ 17,520
40,450
23,100
Cash balance, March 1
Collections from customers
Paid to suppliers
Manufacturing overhead
Direct labor
Selling and administrative expenses
Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $1,600 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 $7.800 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum
cash balance of $10,000.
Required:
Prepare Walter's cash budget for the month of March.
6,900
8,650
5,000
Beginning Cash Balance
Budgeted Cash Receipts
Budgeted Cash Payments
Preliminary Cash Balance
Cash Borrowed
Ending cash balance
4
Transcribed Image Text:Walter Company has the following information for the month of March: $ 17,520 40,450 23,100 Cash balance, March 1 Collections from customers Paid to suppliers Manufacturing overhead Direct labor Selling and administrative expenses Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $1,600 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 $7.800 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $10,000. Required: Prepare Walter's cash budget for the month of March. 6,900 8,650 5,000 Beginning Cash Balance Budgeted Cash Receipts Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed Ending cash balance 4
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