Blue Spruce Company expects to have a cash balance of $45,100 on January 1, 2022. Blue Spruce has budgeted the following for the first two months of the year 2022: Collections from customers: January $89,900: February $109,500. Payments to suppliers: January $40,000: February $50,300. Direct labour: January $29.900, February $34,900. Wages are paid in the month they are incurred. 4 Manufacturing overhead: January $24,800, February $30,300. Overhead costs are paid as incurred. Selling and administrative expenses: January $16,000; February $22,100. These costs do not include depreciation and they are paid as incurred. 1. 2 3. 5 6. Sales of investments in January are expected to realize $10.100 in cash. Blue Spruce Company wants to keep a minimum monthly cash balance of $20,000. Ignore any interest on amounts borrowed. Prepare a cash budget for January and February. BLUE SPRUCE COMPANY Cash Budget For 2022 $ January THOMA S February 111
Blue Spruce Company expects to have a cash balance of $45,100 on January 1, 2022. Blue Spruce has budgeted the following for the first two months of the year 2022: Collections from customers: January $89,900: February $109,500. Payments to suppliers: January $40,000: February $50,300. Direct labour: January $29.900, February $34,900. Wages are paid in the month they are incurred. 4 Manufacturing overhead: January $24,800, February $30,300. Overhead costs are paid as incurred. Selling and administrative expenses: January $16,000; February $22,100. These costs do not include depreciation and they are paid as incurred. 1. 2 3. 5 6. Sales of investments in January are expected to realize $10.100 in cash. Blue Spruce Company wants to keep a minimum monthly cash balance of $20,000. Ignore any interest on amounts borrowed. Prepare a cash budget for January and February. BLUE SPRUCE COMPANY Cash Budget For 2022 $ January THOMA S February 111
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:Blue Spruce Company expects to have a cash balance of $45,100 on January 1, 2022. Blue Spruce has budgeted the following for the
first two months of the year 2022:
1.
2
3
4 Manufacturing overhead: January $24,800: February $30,300. Overhead costs are paid as incurred.
Selling and administrative expenses: January $16,000; February $22,100. These costs do not include depreciation and they
are paid as incurred.
5.
Collections from customers: January $89,900; February $109,500.
Payments to suppliers: January $40,000: February $50,300.
Direct labour: January $29,900, February $34,900. Wages are paid in the month they are incurred.
6.
Sales of investments in January are expected to realize $10.100 in cash. Blue Spruce Company wants to keep a minimum
monthly cash balance of $20,000. Ignore any interest on amounts borrowed.
Prepare a cash budget for January and February.
BLUE SPRUCE COMPANY
Cash Budget
For 2022
January
February
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