Bonita Company expects to have a cash balance of $52,200 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows.Collections from customers: January $98,600, February $174,000.Payments for direct materials: January $58,000, February $87,000.Direct labor: January $34,800, February $52,200. Wages are paid in the month they are incurred.Manufacturing overhead: January $24,360, February $29,000. These costs include depreciation of $1,740 per month. All other overhead costs are paid as incurred.Selling and administrative expenses: January $17,400, February $23,200. These costs are exclusive of depreciation. They are paid as incurred.Sales of marketable securities in January are expected to realize $13,920 in cash. Bonita Company has a line of credit at a local bank that enables it to borrow up to $29,000. The company wants to maintain a minimum monthly cash balance of $23,200.Prepare a cash budget for January and February.BONITA COMPANYCash Budgetchoose the accounting period January Februaryselect an opening cash budget item $enter a dollar amount $enter a dollar amount select between addition and deduction : select an opening name for section one select a cash budget item enter a dollar amount enter a dollar amountselect a cash budget item enter a dollar amount enter a dollar amountselect a closing name for section one enter a total amount for section one enter a total amount for section oneselect a summarizing line for the first part enter a total amount for the first part enter a total amount for the first partselect between addition and deduction : select an opening name for section two select a cash budget item enter a dollar amount enter a dollar amountselect a cash budget item enter a dollar amount enter a dollar amountselect a cash budget item enter a dollar amount enter a dollar amountselect a cash budget item enter a dollar amount enter a dollar amountselect a closing name for section two enter a total amount for section two enter a total amount for section twoselect a summarizing line for the second part enter a total amount for the second part enter a total amount for the second partselect an opening name for section three select between addition and deduction : select a cash budget item enter a dollar amount enter a dollar amountselect between addition and deduction : select a cash budget item enter a dollar amount enter a dollar amountselect a closing cash budget item $enter a total amount for the cash budget $enter a total amount for the cash budget

The cash budget is prepared to record cash receipts and cash payments to be made during the period.…

Answered: Bonita Company expects to have a cash…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bonita Company expects to have a cash balance of $52,200 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows.

Collections from customers: January $98,600, February $174,000.

Payments for direct materials: January $58,000, February $87,000.

Direct labor: January $34,800, February $52,200. Wages are paid in the month they are incurred.

Manufacturing overhead: January $24,360, February $29,000. These costs include depreciation of $1,740 per month. All other overhead costs are paid as incurred.

Selling and administrative expenses: January $17,400, February $23,200. These costs are exclusive of depreciation. They are paid as incurred.

Sales of marketable securities in January are expected to realize $13,920 in cash. Bonita Company has a line of credit at a local bank that enables it to borrow up to $29,000. The company wants to maintain a minimum monthly cash balance of $23,200.

Prepare a cash budget for January and February.

BONITA COMPANY Cash Budget choose the accounting period
	January	February
select an opening cash budget item	$enter a dollar amount	$enter a dollar amount
select between addition and deduction : select an opening name for section one
select a cash budget item	enter a dollar amount	enter a dollar amount
select a cash budget item	enter a dollar amount	enter a dollar amount
select a closing name for section one	enter a total amount for section one	enter a total amount for section one
select a summarizing line for the first part	enter a total amount for the first part	enter a total amount for the first part
select between addition and deduction : select an opening name for section two
select a cash budget item	enter a dollar amount	enter a dollar amount
select a cash budget item	enter a dollar amount	enter a dollar amount
select a cash budget item	enter a dollar amount	enter a dollar amount
select a cash budget item	enter a dollar amount	enter a dollar amount
select a closing name for section two	enter a total amount for section two	enter a total amount for section two
select a summarizing line for the second part	enter a total amount for the second part	enter a total amount for the second part
select an opening name for section three
select between addition and deduction : select a cash budget item	enter a dollar amount	enter a dollar amount
select between addition and deduction : select a cash budget item	enter a dollar amount	enter a dollar amount
select a closing cash budget item	$enter a total amount for the cash budget	$enter a total amount for the cash budget

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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