Ivanhoe Company expects to have a cash balance of $45,200 on January 1, 2022. Ivanhoe has budgeted the following for the first two months of the year 2022: 1. Collections from customers: January $90,900; February $108,900. Payments to suppliers: January $39,600; February $50,500. Direct labour: January $29,800; February $35,000. Wages are paid in the month they are incurred. 4. Manufacturing overhead: January $24,900; February $30,300. Overhead costs are paid as incurred. Selling and administrative expenses: January $16,100; February $22,100. These costs do not include depreciation and they are paid as incurred. 2. 3. 5. 6. Sales of investments in January are expected to realize $9,900 in cash. Ivanhoe Company wants to keep a minimum monthly cash balance of $20,000. Ignore any interest on amounts borrowed.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Ivanhoe Company expects to have a cash balance of $45,200 on January 1, 2022. Ivanhoe has budgeted the following for the first two
months of the year 2022:
1. Collections from customers: January $90,900; February $108,900.
Payments to suppliers: January $39,600; February $50,500.
Direct labour: January $29,800; February $35,000. Wages are paid in the month they are incurred.
4. Manufacturing overhead: January $24,900; February $30,300. Overhead costs are paid as incurred.
Selling and administrative expenses: January $16,100; February $22,100. These costs do not include depreciation and they
are paid as incurred.
2.
3.
5.
6.
Sales of investments in January are expected to realize $9,900 in cash. Ivanhoe Company wants to keep a minimum
monthly cash balance of $20,000. Ignore any interest on amounts borrowed.
Prepare a cash budget for January and February.
IVANHOE COMPANY
Cash Budget
For 2022
$
January
$
February
Transcribed Image Text:Ivanhoe Company expects to have a cash balance of $45,200 on January 1, 2022. Ivanhoe has budgeted the following for the first two months of the year 2022: 1. Collections from customers: January $90,900; February $108,900. Payments to suppliers: January $39,600; February $50,500. Direct labour: January $29,800; February $35,000. Wages are paid in the month they are incurred. 4. Manufacturing overhead: January $24,900; February $30,300. Overhead costs are paid as incurred. Selling and administrative expenses: January $16,100; February $22,100. These costs do not include depreciation and they are paid as incurred. 2. 3. 5. 6. Sales of investments in January are expected to realize $9,900 in cash. Ivanhoe Company wants to keep a minimum monthly cash balance of $20,000. Ignore any interest on amounts borrowed. Prepare a cash budget for January and February. IVANHOE COMPANY Cash Budget For 2022 $ January $ February
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