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.

Cash budget in the business shows all cash receipts and all cash payments that are being made by the…

Answered: Use the following information:…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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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.

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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