Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,470 $211,539 Direct material purchases 115,290 120,831 Direct labor 75,200 73,300 Manufacturing overhead 25,400 25,200 Selling and administrative expenses 33,400 33,400 Depreciation included in selling and administrative 1,500 1,100 Collections from customers 215,392 240,154 Cash payments for purchases 114,300 119,252 Additional data: Capital assets were sold in January for $11,000 and $4,500 in May. Dividends of $4,600 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $58,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster CompanyCash BudgetFor the First Two Quarters Quarter 1 Quarter 2 $- Select - $- Select - Add: Cash Receipts - Select - - Select - - Select - - Select - Total Receipts $fill in the blank 10 $fill in the blank 11 Total Available Cash $fill in the blank 12 $fill in the blank 13 Less: Cash Payments - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - - Select - Total Cash Payments $fill in the blank 29 $fill in the blank 30 Excess (Deficiency) of Available Cash Over Cash Disbursements $fill in the blank 31 $fill in the blank 32 Financing - Select - - Select - - Select - - Select - Ending cash balance $fill in the blank 39 $fill in the blank 40

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 14CDQ

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Question Content Area

Relevant data from the Poster Company’s operating budgets are:

	Quarter 1	Quarter 2
Sales	$208,470	$211,539
Direct material purchases	115,290	120,831
Direct labor	75,200	73,300
Manufacturing overhead	25,400	25,200
Selling and administrative expenses	33,400	33,400
Depreciation included in selling and administrative	1,500	1,100
Collections from customers	215,392	240,154
Cash payments for purchases	114,300	119,252

Additional data:
Capital assets were sold in January for $11,000 and $4,500 in May.
Dividends of $4,600 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $58,000.

Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank.

The Poster CompanyCash BudgetFor the First Two Quarters

	Quarter 1	Quarter 2
	$- Select -	$- Select -
Add: Cash Receipts
	- Select -	- Select -
	- Select -	- Select -
Total Receipts	$fill in the blank 10	$fill in the blank 11
Total Available Cash	$fill in the blank 12	$fill in the blank 13
Less: Cash Payments
	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
Total Cash Payments	$fill in the blank 29	$fill in the blank 30
Excess (Deficiency) of Available Cash Over Cash Disbursements	$fill in the blank 31	$fill in the blank 32
Financing
	- Select -	- Select -
	- Select -	- Select -
Ending cash balance	$fill in the blank 39	$fill in the blank 40

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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