Coronado Company expects to have a cash balance of $41,400 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $78,200, February $138,000. Payments for direct materials: January $46,000, February $69,000. Direct labor: January $27,600, February $41,400. Wages are paid in the month they are incurred. Manufacturing overhead: January $19,320, February $23,000. These costs include depreciation of $1,380 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $13,800, February $18,400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $11,040 in cash. Coronado Company has a line of credit at a local bank that enables it to borrow up to $23,000. The company wants to maintain a minimum monthly cash balance of $18,400. Prepare a cash budget for January and February. CORONADO COMPANY Cash Budget For the Quarter Ending February 28, 2022

Coronado Company expects to have a cash balance of $41,400 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $78,200, February $138,000. Payments for direct materials: January $46,000, February $69,000. Direct labor: January $27,600, February $41,400. Wages are paid in the month they are incurred. Manufacturing overhead: January $19,320, February $23,000. These costs include depreciation of $1,380 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $13,800, February $18,400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $11,040 in cash. Coronado Company has a line of credit at a local bank that enables it to borrow up to $23,000. The company wants to maintain a minimum monthly cash balance of $18,400. Prepare a cash budget for January and February. CORONADO COMPANY Cash Budget For the Quarter Ending February 28, 2022

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 3PA: Budgeted income statement and supporting budgets The budget director of Birding Homes Feeders Inc.,...

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