Relevant data from the Poster Company's operating budgets are: Quarter 1 Quarter 2 Sales $208,460 $211,540 Direct material purchases 115,295 120,831 Direct labor 75,210 73,298 Manufacturing overhead 25,300 25,400 Selling and administrative expenses 33,600 33,500 Depreciation included in selling and administrative 1,500 1,000 Collections from customers 215,392 240,155 Cash payments for purchases 114,290 119,254 Additional data: Capital assets were sold in January for $9,000 and $4,400 in May. Dividends of $4,400 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $60,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Beginning Cash Balance v Add: Cash Receipts Collections from Customers v Other Collections v Total Receipts Total Available Cash Less: Cash Payments Purchase of Direct Material v Direct Labor v Manufacturing Overhead v Selling and Administrative Expenses v Cash Dividend v Total Cash Payments Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Add: Borrowings v Less: Repayments v Ending cash balance Feedback
Relevant data from the Poster Company's operating budgets are: Quarter 1 Quarter 2 Sales $208,460 $211,540 Direct material purchases 115,295 120,831 Direct labor 75,210 73,298 Manufacturing overhead 25,300 25,400 Selling and administrative expenses 33,600 33,500 Depreciation included in selling and administrative 1,500 1,000 Collections from customers 215,392 240,155 Cash payments for purchases 114,290 119,254 Additional data: Capital assets were sold in January for $9,000 and $4,400 in May. Dividends of $4,400 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $60,000. Use this information to prepare a cash budget for the first two quarters of the year: If an amount box does not require an entry, leave it blank. The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Beginning Cash Balance v Add: Cash Receipts Collections from Customers v Other Collections v Total Receipts Total Available Cash Less: Cash Payments Purchase of Direct Material v Direct Labor v Manufacturing Overhead v Selling and Administrative Expenses v Cash Dividend v Total Cash Payments Excess (Deficiency) of Available Cash Over Cash Disbursements Financing Add: Borrowings v Less: Repayments v Ending cash balance Feedback
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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.
Question
Transcribed Image Text:Relevant data from the Poster Company's operating budgets are:
Quarter 1 Quarter 2
Sales
$208,460 $211,540
Direct material purchases
115,295
120,831
Direct labor
75,210
73,298
Manufacturing overhead
25,300
25,400
Selling and administrative expenses
33,600
33,500
Depreciation included in selling and administrative
1,500
1,000
Collections from customers
215,392
240,155
Cash payments for purchases
114,290
119,254
Additional data:
Capital assets were sold in January for $9,000 and $4,400 in May.
Dividends of $4,400 were paid in February. The beginning cash balance was $60,360
and a required minimum cash balance is $60,000.
Use this information to prepare a cash budget for the first two quarters of the year:
If an amount box does not require an entry, leave it blank.
The Poster Company
Cash Budget
For the First Two Quarters
Quarter 1
Quarter 2
Beginning Cash Balance v
Add: Cash Receipts
Collections from Customers
Other Collections
Total Receipts
$
Total Available Cash
$
Less: Cash Payments
Purchase of Direct Material v
Direct Labor
Manufacturing Overhead
Selling and Administrative Expenses v
Cash Dividend v
Total Cash Payments
$
Excess (Deficiency) of Available Cash Over Cash Disbursements $
Financing
Add: Borrowings
Less: Repayments v
Ending cash balance
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