Relevant data from the operating budget of The Framers are: quarter 1 quarter 2 Sales $35,000 76,000 Direct Material purchases 25,000 26,000 Direct labor 30,000 24,000 Manufacturing OH 9,000 10,000 Selling & Admin 20,000 20,000 Depreciation included in Selling & Admin 1000 1,000 Cash Collections 34,000 76,000 Cash payments 29,000 20,000 Cash received: other 8,000 500 Dividend 0 500 Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May. The beginning cash balance was $40,000 and a required minimum cash balance is $8,000. Prepare a cash budget for the first two quarters of the year.
Relevant data from the operating budget of The Framers are: quarter 1 quarter 2 Sales $35,000 76,000 Direct Material purchases 25,000 26,000 Direct labor 30,000 24,000 Manufacturing OH 9,000 10,000 Selling & Admin 20,000 20,000 Depreciation included in Selling & Admin 1000 1,000 Cash Collections 34,000 76,000 Cash payments 29,000 20,000 Cash received: other 8,000 500 Dividend 0 500 Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May. The beginning cash balance was $40,000 and a required minimum cash balance is $8,000. Prepare a cash budget for the first two quarters of the year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Relevant data from the operating budget of The Framers are:
| quarter 1 | quarter 2 | |
| Sales | $35,000 | 76,000 |
| Direct Material purchases | 25,000 | 26,000 |
| Direct labor | 30,000 | 24,000 |
| Manufacturing OH | 9,000 | 10,000 |
| Selling & Admin | 20,000 | 20,000 |
| 1000 | 1,000 | |
| Cash Collections | 34,000 | 76,000 |
| Cash payments | 29,000 | 20,000 |
| Cash received: other | 8,000 | 500 |
| Dividend | 0 | 500 |
Other data:
- Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2.
- Dividends of $500 will be paid in May.
- The beginning cash balance was $40,000 and a required minimum cash balance is $8,000.
Prepare a
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