Avery Company has prepared the following schedules and additional​ information: 1​(Click the icon to view the cash receipts​ schedule.)                                     2​(Click the icon to view the cash payments​ schedule.) 3​(Click the icon to view the additional​ information.)   Complete a cash budget for Avery Company for January​, February and March. ​(Complete all input fields. Enter a​ "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Enter a cash deficiency with a minus sign or​ parentheses.)   Avery Company Cash Budget January, February, and March   January Beginning cash balance $5,500 Cash receipts 10,800 Cash available 16,300 Cash payments:   Purchases of direct materials 0 Direct labor 2,900 Manufacturing overhead 3,720 Selling and administrative expenses 5,920 Interest expense 0 Total cash payments 12,540 Ending cash balance before financing 3,760 Minimum cash balance desired (5,500) Projected cash excess (deficiency) (1,740) Financing:   Borrowing 2,000 Principal repayments 0 Total effects of financing 2,000 Ending cash balance $5,760 February $5,760 14,380 20,140   3,900 3,100 850 4,550 18 12,418 7,722 (5,500) 2,222   0 (2,000) (2,000)   $5,722   March $5,722   13,640 19,362     3,600 4,000 850 4,550 0 13,000 6,362   (5,500) 862     0 0 0 $6,362   Total                                     1: Reference Cash Receipts from Customers           January February March Total Total sales $13,500 $14,600 $13,400 $41,500     January February March Total Cash Receipts from Customers:         Accounts Receivable balance, January 1         January—Cash sales $8,100       January—Credit sales, collection of January sales in January 2,700       January—Credit sales, collection of January sales in February   $2,700     February—Cash sales   8,760     February—Credit sales, collection of February sales in February   2,920     February—Credit sales, collection of February sales in March     $2,920   March—Cash sales     8,040   March—Credit sales, collection of March sales in March     2,680   Total cash receipts from customers $10,800 $14,380 $13,640 $38,820             Accounts Receivable balance, March 31:         March—Credit sales, collection of March sales in April $2,680       2: Reference     January February March Total Cash Payments         Direct Materials:         Accounts Payable balance, January 1 $0       January—Direct material purchases paid in February   $3,900     February—Direct material purchases paid in March     $3,600   Total payments for direct materials 0 3,900 3,600 $7,500             Direct Labor:         Total payments for direct labor 2,900 3,100 4,000 10,000             Manufacturing Overhead:         Utilities for plant   850 850 1,700 Property taxes on plant 3,720     3,720 Total payments for manufacturing overhead 3,720 850 850 5,420             Selling and Administrative Expenses:         Utilities for office   550 550 1,100 Property taxes on office 1,920     1,920 Office salaries 4,000 4,000 4,000 12,000 Total payments for Selling and Admin. expenses 5,920 4,550 4,550 15,020             Total cash payments $12,540 $12,400 $13,000 $37,940 Acccount balances, March 31:         Prepaid Property Taxes $4,230       Accounts Payable $4,500       Utilities Payable $1,400       3: More Info Avery​'s beginning cash balance is $5,500 and Avery desires to maintain a minimum ending cash balance of $5,500. Avery borrows cash as needed at the beginning of each month in increments of​ $1,000 and repays the amounts borrowed in increments of​ $1,000 at the beginning of months when excess cash is available. The interest rate on amounts borrowed is 11​% per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month. YOU​ ANSWERED: February 5760 14380 20140   3900 3100 850 4550 18 12418 7722 5500 2222   0 2000 nothing nothing March 7722 13640 21362   3600 4000 850 4550 0 13000 8362 5500 2362   0 0 0 nothing

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question
Avery
Company has prepared the following schedules and additional​ information:
1​(Click
the icon to view the cash receipts​ schedule.)                                    
2​(Click
the icon to view the cash payments​ schedule.)
3​(Click
the icon to view the additional​ information.)
 
Complete a cash budget for
Avery
Company for
January​,
February
and
March.
​(Complete all input fields. Enter a​ "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar. Enter a cash deficiency with a minus sign or​ parentheses.)
 
Avery Company
Cash Budget
January, February, and March
 
January
Beginning cash balance
$5,500
Cash receipts
10,800
Cash available
16,300
Cash payments:
 
Purchases of direct materials
0
Direct labor
2,900
Manufacturing overhead
3,720
Selling and administrative expenses
5,920
Interest expense
0
Total cash payments
12,540
Ending cash balance before financing
3,760
Minimum cash balance desired
(5,500)
Projected cash excess (deficiency)
(1,740)
Financing:
 
Borrowing
2,000
Principal repayments
0
Total effects of financing
2,000
Ending cash balance
$5,760
February
$5,760
14,380
20,140
 
3,900
3,100
850
4,550
18
12,418
7,722
(5,500)
2,222
 
0
(2,000)
(2,000)
 
$5,722
 
March
$5,722
 
13,640
19,362
 
 
3,600
4,000
850
4,550
0
13,000
6,362
 
(5,500)
862
 
 
0
0
0
$6,362
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1: Reference
Cash Receipts from Customers
 
 
 
 
 
January
February
March
Total
Total sales
$13,500
$14,600
$13,400
$41,500
 
 
January
February
March
Total
Cash Receipts from Customers:
 
 
 
 
Accounts Receivable balance, January 1
 
 
 
 
January—Cash sales
$8,100
 
 
 
January—Credit sales, collection of January sales in January
2,700
 
 
 
January—Credit sales, collection of January sales in February
 
$2,700
 
 
February—Cash sales
 
8,760
 
 
February—Credit sales, collection of February sales in February
 
2,920
 
 
February—Credit sales, collection of February sales in March
 
 
$2,920
 
March—Cash sales
 
 
8,040
 
March—Credit sales, collection of March sales in March
 
 
2,680
 
Total cash receipts from customers
$10,800
$14,380
$13,640
$38,820
 
 
 
 
 
 
Accounts Receivable balance, March 31:
 
 
 
 
March—Credit sales, collection of March sales in April
$2,680
 
 
 
2: Reference
 
 
January
February
March
Total
Cash Payments
 
 
 
 
Direct Materials:
 
 
 
 
Accounts Payable balance, January 1
$0
 
 
 
January—Direct material purchases paid in February
 
$3,900
 
 
February—Direct material purchases paid in March
 
 
$3,600
 
Total payments for direct materials
0
3,900
3,600
$7,500
 
 
 
 
 
 
Direct Labor:
 
 
 
 
Total payments for direct labor
2,900
3,100
4,000
10,000
 
 
 
 
 
 
Manufacturing Overhead:
 
 
 
 
Utilities for plant
 
850
850
1,700
Property taxes on plant
3,720
 
 
3,720
Total payments for manufacturing overhead
3,720
850
850
5,420
 
 
 
 
 
 
Selling and Administrative Expenses:
 
 
 
 
Utilities for office
 
550
550
1,100
Property taxes on office
1,920
 
 
1,920
Office salaries
4,000
4,000
4,000
12,000
Total payments for Selling and Admin. expenses
5,920
4,550
4,550
15,020
 
 
 
 
 
 
Total cash payments
$12,540
$12,400
$13,000
$37,940
Acccount balances, March 31:
 
 
 
 
Prepaid Property Taxes
$4,230
 
 
 
Accounts Payable
$4,500
 
 
 
Utilities Payable
$1,400
 
 
 
3: More Info
Avery​'s
beginning cash balance is
$5,500
and
Avery
desires to maintain a minimum ending cash balance of
$5,500.
Avery
borrows cash as needed at the beginning of each month in increments of​ $1,000 and repays the amounts borrowed in increments of​ $1,000 at the beginning of months when excess cash is available. The interest rate on amounts borrowed is
11​%
per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month.
YOU​ ANSWERED:
February
5760
14380
20140
 
3900
3100
850
4550
18
12418
7722
5500
2222
 
0
2000
nothing
nothing
March
7722
13640
21362
 
3600
4000
850
4550
0
13000
8362
5500
2362
 
0
0
0
nothing
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education