Required: 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 Line Item Description Estimated cash receipts from: Cash sales Collection of accounts receivable Total cash receipts Less estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: Income tax Dividends September October November 25,000 30,000 ✔ 31,500 228,000 253,000 ✔ 120,000 42,000 48,000 51,000 200,000 55,000 25,000 Total cash payments $ 162,000 Cash increase or (decrease) 91,000 Plus cash balance at beginning of month 40,000 131,000 Cash balance at end of month 131,000 Less minimum cash balance 50,000 50,000 50,000 Excess or (deficiency) 81,000
Required: 1. Prepare a monthly cash budget and supporting schedules for September, October, and November. Bridgeport Housewares Inc. Cash Budget For the Three Months Ending November 30 Line Item Description Estimated cash receipts from: Cash sales Collection of accounts receivable Total cash receipts Less estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: Income tax Dividends September October November 25,000 30,000 ✔ 31,500 228,000 253,000 ✔ 120,000 42,000 48,000 51,000 200,000 55,000 25,000 Total cash payments $ 162,000 Cash increase or (decrease) 91,000 Plus cash balance at beginning of month 40,000 131,000 Cash balance at end of month 131,000 Less minimum cash balance 50,000 50,000 50,000 Excess or (deficiency) 81,000
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.
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Transcribed Image Text:Required:
1. Prepare a monthly cash budget and supporting schedules for September, October, and November.
Bridgeport Housewares Inc.
Cash Budget
For the Three Months Ending November 30
Line Item Description
September
October
November
Estimated cash receipts from:
Cash sales
25,000
30,000
31,500
Collection of accounts receivable
228,000
x
Total cash receipts
253,000
Less estimated cash payments for:
Manufacturing costs
120,000
Selling and administrative expenses
42,000
48,000
51,000
Capital expenditures
200,000
Other purposes:
Income tax
Dividends
Total cash payments
Cash increase or (decrease)
Plus cash balance at beginning of month
Cash balance at end of month
Less minimum cash balance
Excess or (deficiency)
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$ 162,000
55,000
25,000
91,000
40,000
131,000
$ 131,000
50,000
50,000
50,000
81,000
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