Relevant data from the Poster Company’s operating budgets are: Quarter 1 Quarter 2 Sales $208,470 $211,539 Direct material purchases 115,290 120,832 Direct labor 75,205 73,299 Manufacturing overhead 25,400 25,400 Selling and administrative expenses 33,400 33,400 Depreciation included in selling and administrative 1,400 1,100 Collections from customers 215,391 240,154 Cash payments for purchases 114,300 119,253 Additional data: Capital assets were sold in January for $9,000 and $4,600 in May. Dividends of $4,400 were paid in February. The beginning cash balance was $60,359 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 Company Cash Budget For the First Two Quarters Quarter 1 Quarter 2 Beginning Cash Balance $fill in the blank 2 $fill in the blank 3 Add: Cash Receipts Collections from Customers fill in the blank 5 fill in the blank 6 Other Collections fill in the blank 8 fill in the blank 9 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 Purchase of Direct Material fill in the blank 15 fill in the blank 16 Direct Labor fill in the blank 18 fill in the blank 19 Manufacturing Overhead fill in the blank 21 fill in the blank 22 Selling and Administrative Expenses fill in the blank 24 fill in the blank 25 Cash Dividend fill in the blank 27 fill in the blank 28 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 Add: Borrowings fill in the blank 34 fill in the blank 35 Less: Repayments fill in the blank 37 fill in the blank 38 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

Problem 1Q

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Question

Relevant data from the Poster Company’s operating budgets are:

	Quarter 1	Quarter 2
Sales	$208,470	$211,539
Direct material purchases	115,290	120,832
Direct labor	75,205	73,299
Manufacturing overhead	25,400	25,400
Selling and administrative expenses	33,400	33,400
Depreciation included in selling and administrative	1,400	1,100
Collections from customers	215,391	240,154
Cash payments for purchases	114,300	119,253

Additional data:
Capital assets were sold in January for $9,000 and $4,600 in May.
Dividends of $4,400 were paid in February. The beginning cash balance was $60,359 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 Company
Cash Budget
For the First Two Quarters
	Quarter 1	Quarter 2
Beginning Cash Balance	$fill in the blank 2	$fill in the blank 3
Add: Cash Receipts
Collections from Customers	fill in the blank 5	fill in the blank 6
Other Collections	fill in the blank 8	fill in the blank 9
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
Purchase of Direct Material	fill in the blank 15	fill in the blank 16
Direct Labor	fill in the blank 18	fill in the blank 19
Manufacturing Overhead	fill in the blank 21	fill in the blank 22
Selling and Administrative Expenses	fill in the blank 24	fill in the blank 25
Cash Dividend	fill in the blank 27	fill in the blank 28
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
Add: Borrowings	fill in the blank 34	fill in the blank 35
Less: Repayments	fill in the blank 37	fill in the blank 38
Ending cash balance	$fill in the blank 39	$fill in the blank 40

Relevant data from the Poster Company's operating budgets are:
Quarter 1 Quarter 2
Sales
$208,470 $211,539
Direct material purchases
115,290
120,832
Direct labor
75,205
73,299
Manufacturing overhead
25,400
25,400
Selling and administrative expenses
33,400
33,400
Depreciation included in selling and administrative
1,400
1,100
Collections from customers
215,391
240,154
Cash payments for purchases
114,300
119,253
Additional data:
Capital assets were sold in January for $9,000 and $4,600 in May.
Dividends of $4,400 were paid in February. The beginning cash balance was $60,359 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 Company
Cash Budget
For the First Two Quarters
Quarter 1
Quarter 2
Beginning Cash Balance
Add: Cash Receipts
Collections from Customers
Other Collections
Total Receipts
Total Available Cash
Less: Cash Payments
Purchase of Direct Material
Direct Labor
Manufacturing Overhead
Selling and Administrative Expenses v
Cash Dividend
Total Cash Payments
Excess (Deficiency) of Available Cash Over Cash Disbursements $
Financing
Add: Borrowings
Less: Repayments
Ending cash balance

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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