Relevant data from the Poster Company’s operating budgets are:   Quarter 1 Quarter 2 Sales $208,470 $211,539 Direct material purchases 115,290 120,831 Direct labor 75,200 73,300 Manufacturing overhead 25,400 25,200 Selling and administrative expenses 33,400 33,400 Depreciation included in selling and administrative 1,500 1,100 Collections from customers 215,392 240,154 Cash payments for purchases 114,300 119,252 Additional data: Capital assets were sold in January for $11,000 and $4,500 in May. Dividends of $4,600 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $58,000. 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 CompanyCash BudgetFor the First Two Quarters   Quarter 1 Quarter 2   $- Select - $- Select - Add: Cash Receipts       - Select - - Select -   - Select - - Select - Total Receipts $fill in the blank 10 $fill in the blank 11 Total Available Cash $fill in the blank 12 $fill in the blank 13 Less: Cash Payments       - Select - - Select -   - Select - - Select -   - Select - - Select -   - Select - - Select -   - Select - - Select - Total Cash Payments $fill in the blank 29 $fill in the blank 30 Excess (Deficiency) of Available Cash Over Cash Disbursements $fill in the blank 31 $fill in the blank 32 Financing       - Select - - Select -   - Select - - Select - Ending cash balance $fill in the blank 39 $fill in the blank 40

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Relevant data from the Poster Company’s operating budgets are:

  Quarter 1 Quarter 2
Sales $208,470 $211,539
Direct material purchases 115,290 120,831
Direct labor 75,200 73,300
Manufacturing overhead 25,400 25,200
Selling and administrative expenses 33,400 33,400
Depreciation included in selling and administrative 1,500 1,100
Collections from customers 215,392 240,154
Cash payments for purchases 114,300 119,252

Additional data:
Capital assets were sold in January for $11,000 and $4,500 in May.
Dividends of $4,600 were paid in February. The beginning cash balance was $60,360 and a required minimum cash balance is $58,000.

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 CompanyCash BudgetFor the First Two Quarters
  Quarter 1 Quarter 2
 
$- Select - $- Select -
Add: Cash Receipts    
 
- Select - - Select -
 
- Select - - Select -
Total Receipts $fill in the blank 10 $fill in the blank 11
Total Available Cash $fill in the blank 12 $fill in the blank 13
Less: Cash Payments    
 
- Select - - Select -
 
- Select - - Select -
 
- Select - - Select -
 
- Select - - Select -
 
- Select - - Select -
Total Cash Payments $fill in the blank 29 $fill in the blank 30
Excess (Deficiency) of Available Cash Over Cash Disbursements $fill in the blank 31 $fill in the blank 32
Financing    
 
- Select - - Select -
 
- Select - - Select -
Ending cash balance $fill in the blank 39 $fill in the blank 40
The Poster Company
Cash Budget
For the First Two Quarters
Quarter 1
Quarter 2
Add: Cash Receipts
Total Receipts
Total Available Cash
Less: Cash Payments
Total Cash Payments
Excess (Deficiency) of Available Cash Over Cash Disbursements $
Financing
Ending cash balance
Transcribed Image Text:The Poster Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Add: Cash Receipts Total Receipts Total Available Cash Less: Cash Payments Total Cash Payments Excess (Deficiency) of Available Cash Over Cash Disbursements $ Financing Ending cash balance
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