Current Attempt in Progress Concord Company expects to have a cash balance of $50,400 on January 1, 2025. Relevant monthly budget data for the first 2 months of 2025 are as follows. Collections from customers: January $95.200, February $168,000. Payments for direct materials: January $56,000, February $84,000. Direct labor: January $33,600, February $50.400. Wages are paid in the month they are incurred. Manufacturing overhead: January $23.520, February $28,000. These costs include depreciation of $1,680 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $16.800, February $22.400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,440 in cash. Concord Company has a line of credit at a local bank that enables it to borrow up to $28,000. The company wants to maintain a minimum monthly cash balance of $22.400. Prepare a cash budget for January and February.
Current Attempt in Progress Concord Company expects to have a cash balance of $50,400 on January 1, 2025. Relevant monthly budget data for the first 2 months of 2025 are as follows. Collections from customers: January $95.200, February $168,000. Payments for direct materials: January $56,000, February $84,000. Direct labor: January $33,600, February $50.400. Wages are paid in the month they are incurred. Manufacturing overhead: January $23.520, February $28,000. These costs include depreciation of $1,680 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $16.800, February $22.400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,440 in cash. Concord Company has a line of credit at a local bank that enables it to borrow up to $28,000. The company wants to maintain a minimum monthly cash balance of $22.400. Prepare a cash budget for January and February.
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:Current Attempt in Progress
Concord Company expects to have a cash balance of $50,400 on January 1, 2025. Relevant monthly budget data for the first 2 months
of 2025 are as follows.
Collections from customers: January $95.200, February $168,000.
Payments for direct materials: January $56,000, February $84,000,
Direct labor: January $33,600, February $50,400. Wages are paid in the month they are incurred.
Manufacturing overhead: January $23,520, February $28,000. These costs include depreciation of $1,680 per month. All other
overhead costs are paid as incurred.
Selling and administrative expenses: January $16,800, February $22.400. These costs are exclusive of depreciation. They are paid as
incurred.
Sales of marketable securities in January are expected to realize $13,440 in cash. Concord Company has a line of credit at a local bank
that enables it to borrow up to $28,000. The company wants to maintain a minimum monthly cash balance of $22.400.
Prepare a cash budget for January and February.
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CONCORD COMPANY
Cash Budget
January
February
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