Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,470 $211,538 Direct material purchases 115,295 120,833 Direct labor 75,210 73,299 Manufacturing overhead 25,400 25,200 Selling and administrative expenses 33,500 33,600 Depreciation included in selling and administrative 1,500 1,100 Collections from customers 215,393 240,154 Cash payments for purchases 114,290 119,253 Additional data: Capital assets were sold in January for $9,000 and $4,400 in May. Dividends of $4,500 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 Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 $fill in the blank 2 $fill in the blank 3 Add: Cash Receipts fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 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 fill in the blank 15 fill in the blank 16 fill in the blank 18 fill in the blank 19 fill in the blank 21 fill in the blank 22 fill in the blank 24 fill in the blank 25 fill in the blank 27 fill in the blank 28 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 fill in the blank 34 fill in the blank 35 fill in the blank 37 fill in the blank 38 Ending cash balance $fill in the blank 39 $fill in the blank 40

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 6PA: Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were...

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

	Quarter 1	Quarter 2
Sales	$208,470	$211,538
Direct material purchases	115,295	120,833
Direct labor	75,210	73,299
Manufacturing overhead	25,400	25,200
Selling and administrative expenses	33,500	33,600
Depreciation included in selling and administrative	1,500	1,100
Collections from customers	215,393	240,154
Cash payments for purchases	114,290	119,253

Additional data:
Capital assets were sold in January for $9,000 and $4,400 in May.
Dividends of $4,500 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 Company
Cash Budget
For the First Two Quarters
	Quarter 1	Quarter 2
	$fill in the blank 2	$fill in the blank 3
Add: Cash Receipts
	fill in the blank 5	fill in the blank 6
	fill in the blank 8	fill in the blank 9
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
	fill in the blank 15	fill in the blank 16
	fill in the blank 18	fill in the blank 19
	fill in the blank 21	fill in the blank 22
	fill in the blank 24	fill in the blank 25
	fill in the blank 27	fill in the blank 28
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
	fill in the blank 34	fill in the blank 35
	fill in the blank 37	fill in the blank 38
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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