Chris Anderson, Sheffield & Daniel Fabricators' budget director, has received budget information from several managers and is preparing the company's cash budget. Collections from sales Payments for direct materials Payments for direct labor 98,640 Payments for manufacturing overheads 78,490 Payments for Selling & administrative expenses 111,400 January 477,200 ● 80,505 Shoffok February March 637,720 560,860 253,125 103,680 78,980 116,440 280,730 116,640 80,240 In addition to the information he received from these managers, Chris knows the following: 123,160 Quarter 1,675,780 $26.400will be paid in lanuon 614,360 318,960 237,710 Sheffield & Daniel plans to have $32,400 in its cash account on January 1. Sheffield & Daniel plans to purchase and pay cash for a piece of land in January at a cost of $90,000. Sheffield & Daniel plans to make a cash purchase of equipment in March at a cost of $30,000. 351,000
Chris Anderson, Sheffield & Daniel Fabricators' budget director, has received budget information from several managers and is preparing the company's cash budget. Collections from sales Payments for direct materials Payments for direct labor 98,640 Payments for manufacturing overheads 78,490 Payments for Selling & administrative expenses 111,400 January 477,200 ● 80,505 Shoffok February March 637,720 560,860 253,125 103,680 78,980 116,440 280,730 116,640 80,240 In addition to the information he received from these managers, Chris knows the following: 123,160 Quarter 1,675,780 $26.400will be paid in lanuon 614,360 318,960 237,710 Sheffield & Daniel plans to have $32,400 in its cash account on January 1. Sheffield & Daniel plans to purchase and pay cash for a piece of land in January at a cost of $90,000. Sheffield & Daniel plans to make a cash purchase of equipment in March at a cost of $30,000. 351,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
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Transcribed Image Text:Beginning cash balance
Collections from sales
Total cash available to spend
Less
: Disbursements
Manufacturing overhead
Payments for direct materials
Direct labor
Selling & administrative expenses
Land and Equipment purchases
Income taxes
Income taxes
Total cash disbursements
Cash excess (deficiency)
Minimum cash balance
LV Englis
Cash excess (needed)
Financing
Borrowings
Repayments
Interest
Total financing
Ending cash balance
:
$
$
January
$
$
February
Right after the March column, there is the Quarter column, it just did not fit in the screenshot
March
00000000
$
Transcribed Image Text:Chris Anderson, Sheffield & Daniel Fabricators' budget director, has received budget information from several managers and is
preparing the company's cash budget.
January
477,200
80,505
Collections from sales
Payments for direct materials
Payments for direct labor
98,640
Payments for manufacturing overheads
78,490
Payments for Selling & administrative expenses 111,400
●
February
560,860
253,125
103,680
78,980
116,440
March
637,720
280,730
116,640
80,240
123,160
In addition to the information he received from these managers, Chris knows the following:
Quarter
1,675,780
614,360
318,960
237,710
351,000
Sheffield & Daniel plans to have $32,400 in its cash account on January 1.
Sheffield & Daniel plans to purchase and pay cash for a piece of land in January at a cost of $90,000.
Sheffield & Daniel plans to make a cash purchase of equipment in March at a cost of $30,000.
Sheffield & Daniel's income taxes from last quarter totaling $26,400 will be paid in January.
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