month of sale. The company requires a minimum cash balance of $1,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yeaman need to borrow cash by the end of February?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Yeaman has $13,000 in cash on hand on January 1 and has collected the following budget data:
(Click on the icon to view the budget data)
Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yeaman has cash payments for selling and administrative expenses including salaries
of $65,000 per month plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $1,000. Prepare a cash budget for January and February.
Round to the nearest dollar. Will Yeaman need to borrow cash by the end of February?
Begin by preparing the cash budget for January, then prepare the cash budget for February (Complete all input fields. Enter a "0" for any zero balances. Round all amounts entered into the cash
budget to the nearest whole dollar.)
Data table
Sales
Cash receipts from customers
Cash payments for direct materials purchases
Direct labor costs
Manufacturing overhead costs (includes depreciation of
$1,100 per month)
Print
CO
Done
January February
$ 529,000 $ 566,000
442,300 502,000
180,462
160,366
135,010
55,492
112,532
53,782
- X
Transcribed Image Text:Yeaman has $13,000 in cash on hand on January 1 and has collected the following budget data: (Click on the icon to view the budget data) Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yeaman has cash payments for selling and administrative expenses including salaries of $65,000 per month plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $1,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yeaman need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February (Complete all input fields. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar.) Data table Sales Cash receipts from customers Cash payments for direct materials purchases Direct labor costs Manufacturing overhead costs (includes depreciation of $1,100 per month) Print CO Done January February $ 529,000 $ 566,000 442,300 502,000 180,462 160,366 135,010 55,492 112,532 53,782 - X
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