Question

Use the following information to prepare the september cash budget for pto co. the following information relates to expected cash receipts and cash payment for the month ened september 30

1. Beginning cash balance, September 1, $47,000.
2. Budgeted cash receipts from sales in September, $258,000.
3. Raw materials are purchased on account. Purchase amounts are August (actual), $76,000, and September (budgeted), $108,000. Payments for direct materials are made as follows: 65% in the month of purchase and 35% in the month following purchase.
4. Budgeted cash payments for direct labor in September, $35,000.
5. Budgeted depreciation expense for September, $3,800.
6. Other cash expenses budgeted for September, $51,000.
7. Accrued income taxes payable in September, $10,700.
8. Bank loan interest payable in September, $1,400.

Answer 1

$110,100

Step-by-step explanation:

Preparation of september cash budget for pto co

Cash Budget

Beginning Cash balance 47,000

Cash receipt from sales 258,000

Total cash available 305,000

Less Cash payment for :

Direct material 96,800

Direct labor 35,000

Other expense 51,000

Accrued income tax 10,700

Interest on bank loan 1,400

Total cash payments 194,900

Ending Cash balance 110,100

( 305,000- 110,100)

Therefore the ending Cash balance will be $110,100

Calculation for $76,000 ×35%) + ($108,000 ×65%)

=26,600+70,200

=96,800