Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly budget data for the first two months of 2022 are as follows: 1 Collections from customers: January $101.000;February $158,000 2 Payments to suppliers: January $61,000. February $82.000 Direct labour: January $31,000; February $45,000. Wages are paid in the month they are incurred Manufacturing overhead: January $25,000; February $32,000. These costs include depreciation of $1,000 per month. All other overhead costs are paid as incurred. 3. 4. 5. Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $9,000 in cash. Wildhorse Company has a line of credit at a local bank. It can borrow up to $26,000. The company wants to keep a minimum monthly cash balance of $26,000. Prepare a cash budget for January and February Beginning cash Question 2 of 3 Sale of marketa Totalreceipts Total available Less Income tax exc Manufacturing Total financing Selling and adm Direct labour $ Purchase of lar WILDHORSE COMPANY Cash Budget For the Two Months Ending February 28, 2022 Month Jan 47000 9000 110000 157000 61000 24000 15000 31000 131000 Fab 26000 158000 184000 82000 31000 21000 i 45000 179000 $ Total 21000 9000 268000 557000 143000 55000 i 36000 76000 i 310000 i
Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly budget data for the first two months of 2022 are as follows: 1 Collections from customers: January $101.000;February $158,000 2 Payments to suppliers: January $61,000. February $82.000 Direct labour: January $31,000; February $45,000. Wages are paid in the month they are incurred Manufacturing overhead: January $25,000; February $32,000. These costs include depreciation of $1,000 per month. All other overhead costs are paid as incurred. 3. 4. 5. Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $9,000 in cash. Wildhorse Company has a line of credit at a local bank. It can borrow up to $26,000. The company wants to keep a minimum monthly cash balance of $26,000. Prepare a cash budget for January and February Beginning cash Question 2 of 3 Sale of marketa Totalreceipts Total available Less Income tax exc Manufacturing Total financing Selling and adm Direct labour $ Purchase of lar WILDHORSE COMPANY Cash Budget For the Two Months Ending February 28, 2022 Month Jan 47000 9000 110000 157000 61000 24000 15000 31000 131000 Fab 26000 158000 184000 82000 31000 21000 i 45000 179000 $ Total 21000 9000 268000 557000 143000 55000 i 36000 76000 i 310000 i
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 20E
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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![Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly budget data for the first
two months of 2022 are as follows:
1. Collections from customers: January $101,000; February $158,000
Payments to suppliers: January $61,000: February $82.000
Direct labour: January $31,000; February $45,000. Wages are paid in the month they are incurred
Manufacturing overhead: January $25,000; February $32,000. These costs include depreciation of $1,000 per month.
All other overhead costs are paid as incurred.
2.
3.
4.
5.
6.
Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation.
They are paid as incurred.
Sales of marketable securities in January are expected to realize $9,000 in cash.
Wildhorse Company has a line of credit at a local bank. It can borrow up to $26,000. The company wants to keep a minimum
monthly cash balance of $26,000.
Prepare a cash budget for January and February.
Beginning cash
Question 2 of 3
Sale of marketa
Totalreceipts
Total available c
Less
Income tax exc
Manufacturing
Selling and adm
[1]
Direct labour
Total financing
$
Purchase of lar
WILDHORSE COMPANY
Cash Budget
For the Two Months Ending February 28, 2022
Month
Jan
47000
9000
110000
157000
61000
24000
15000
31000
131000 i
$
Feb
26000
158000
184000
82000
31000
21000
45000
179000 i
$
Total
21000
9000
268000
557000
143000
i
55000 i
36000 i
76000 i
310000 i](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd56e9c7b-6890-4f1d-871e-0176b2130677%2Fab08c108-3cd4-419d-834f-0930ee1a2001%2Fexd2se_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Wildhorse Company expects to have a cash balance of $47,000 on January 1, 2022. Relevant monthly budget data for the first
two months of 2022 are as follows:
1. Collections from customers: January $101,000; February $158,000
Payments to suppliers: January $61,000: February $82.000
Direct labour: January $31,000; February $45,000. Wages are paid in the month they are incurred
Manufacturing overhead: January $25,000; February $32,000. These costs include depreciation of $1,000 per month.
All other overhead costs are paid as incurred.
2.
3.
4.
5.
6.
Selling and administrative expenses: January $15,000; February $21,000. These costs are exclusive of depreciation.
They are paid as incurred.
Sales of marketable securities in January are expected to realize $9,000 in cash.
Wildhorse Company has a line of credit at a local bank. It can borrow up to $26,000. The company wants to keep a minimum
monthly cash balance of $26,000.
Prepare a cash budget for January and February.
Beginning cash
Question 2 of 3
Sale of marketa
Totalreceipts
Total available c
Less
Income tax exc
Manufacturing
Selling and adm
[1]
Direct labour
Total financing
$
Purchase of lar
WILDHORSE COMPANY
Cash Budget
For the Two Months Ending February 28, 2022
Month
Jan
47000
9000
110000
157000
61000
24000
15000
31000
131000 i
$
Feb
26000
158000
184000
82000
31000
21000
45000
179000 i
$
Total
21000
9000
268000
557000
143000
i
55000 i
36000 i
76000 i
310000 i
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