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

See similar textbooks

Related questions

Concept explainers

Question

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

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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.