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Prepare a cash budget for the first quarter.

Prepare a cash budget for the first quarter.

FINANCIAL ACCOUNTING
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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Rr.20.

 

Shamrock Corporation is projecting a cash balance of $31,000 in its December 31, 2021, balance sheet. Shamrock's schedule of expected collections from customers for the first quarter of 2022 shows total collections of $184,000. The schedule of expected payments for direct materials for the first quarter of 2022 shows total payments of $37,000. Other information gathered for the first quarter of 2022 is as follows: sale of equipment $3,000; direct labour $79,000, manufacturing overhead $38,000; selling and administrative expenses $41,000; and purchase of securities $16,000. Shamrock wants to maintain a balance of at least $27,000 cash at the end of each quarter. Prepare a cash budget for the first quarter.
Transcribed Image Text:Shamrock Corporation is projecting a cash balance of $31,000 in its December 31, 2021, balance sheet. Shamrock's schedule of expected collections from customers for the first quarter of 2022 shows total collections of $184,000. The schedule of expected payments for direct materials for the first quarter of 2022 shows total payments of $37,000. Other information gathered for the first quarter of 2022 is as follows: sale of equipment $3,000; direct labour $79,000, manufacturing overhead $38,000; selling and administrative expenses $41,000; and purchase of securities $16,000. Shamrock wants to maintain a balance of at least $27,000 cash at the end of each quarter. Prepare a cash budget for the first quarter.
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