Use the following information a. Beginning cash balance on March 1, P72,000. b. Cash receipts from sales, P300,000. с. Budgeted cash disbursements for purchases, 140,000. d. Budgeted cash disbursements for salaries, 80,000. е. Other budgeted cash expenses, 45,000. f. Cash repayment of bank loan, 20,000. Prepare a cash budget for the month ended on March 31 for Mason Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31.

Use the following information a. Beginning cash balance on March 1, P72,000. b. Cash receipts from sales, P300,000. с. Budgeted cash disbursements for purchases, 140,000. d. Budgeted cash disbursements for salaries, 80,000. е. Other budgeted cash expenses, 45,000. f. Cash repayment of bank loan, 20,000. Prepare a cash budget for the month ended on March 31 for Mason Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31.

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter6: Managing Cash Flow

Section: Chapter Questions

Problem 1EP

See similar textbooks

Similar questions

What is the amount of budgeted cash payments if purchases are budgeted for $190,500 and the beginning and ending balances of accounts payable are $21,000 and $25,000, respectively?
A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
In an attempt to better understand RR’s cash position, Johnson developed a cash budget for the first 2 months of the year. She has the figures for the other months, but they are not shown. After looking at the cash budget, answer the following questions: What does the cash budget show regarding the target cash level? Should depreciation expense be explicitly included in the cash budget? Why or why not? What are some other potential cash inflows besides collections? How can interest earned or paid on short-term securities or loans be incorporated in the cash budget? In her preliminary cash budget, Johnson has assumed that all sales are collected and thus that RR has no bad debts. Is this realistic? If not, how would bad debts be dealt with in a cash budgeting sense? (Hint: Bad debts will affect collections but not purchases.)
The following information was taken from Concord Corporation cash budget for the month of July: Beginning cash balance $100000 Cash receipts 96000 Cash disbursements 136000 If the company has a policy of maintaining an end of the month cash balance of $100000, the amount the company would have to borrow is
The following information was taken from Nash's Trading Post, LLC cash budget for the month of June Beginning cash balance $51000 Cash receipts 69000 Cash disbursements 87000 If the company has a policy of maintaining an end of the month cash balance of $44000, the amount the company would have to borrow is $11000. $27000. $18000. $0.
Which is the correct answer? The following information was reported in a cash budget: Beginning cash balance $280,000 Cash payments 494,000 Cash receipts 370,000 Minimum cash balance desired 200,000 How much cash will the company have to borrow in order to meet its required needs? a. $64,000 b. $124,000 c. $0 d. $44,000
The following information was taken from Southgate Industry’s cash budget for the month of July: Beginning cash balance $480,000 Cash receipts 304,000 Cash disbursements 544,000 If the company has a policy of maintaining a minimum end of the month cash balance of $400,000, the amount the company would have to borrow is Group of answer choices $240,000. $96,000. $80,000. $160,000.
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. CashReceipts Cashpayments January $ 516,000 $ 461,700 February 403,000 348,700 March 451,000 530,000 According to a credit agreement with its bank, Kayak requires a minimum cash balance of $40,000 at each month-end. In return, the bank has agreed that the company can borrow up to $150,000 at a monthly interest rate of 1%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts…
Use the following information: Beginning cash balance on March 1, $77,000. Cash receipts from sales, $306,000. Budgeted cash payments for direct materials, $136,000. Budgeted cash payments for direct labor, $71,000. Other budgeted cash expenses, $43,000. Cash repayment of bank loan, $16,000. Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash payments for the month of March and the balance expected on March 31.
Use the information for the company below to answer the question that follow.A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data have been provided: January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash payments 984,500 1,210,000 1,075,000 What is the amount of the deficiency or excess cash (after considering the minimum cash balance required) for January?
PRS company is preparing cash budget for the forthcoming year with the following details:1512nd3rd quarter 4th quarterQuarter QuarterTotal cash receipts $180.000 $330,000 $210.000 S230.000Total cash disbursements $260,000 $230,000 $220,000 $240,000Cash balance at beginning of the year is $20,000. It is a goal for the company to maintainthe minimum cash balance of $10,000 and borrow the funds from local bank as and whenrequired at quarterly interest rate of 3%. The funds can be borrowed at beginning of thequarter and repaid at end of the year. Repayment can be full or part of loan. Interest willbe due on principal amount that is repaid.