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The company expects its cash balance on January 1, 2023, to be $49,000. It wants to maintain a minimum cash balance of $39,000. Prepare schedules for (1) the expected collections from customers. Month November December $ January $ February

The company expects its cash balance on January 1, 2023, to be $49,000. It wants to maintain a minimum cash balance of $39,000. Prepare schedules for (1) the expected collections from customers. Month November December $ January $ February

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The company expects its cash balance on January 1, 2023, to be $49,000. It wants to maintain a minimum cash balance of $39,000. Prepare schedules for (1) the expected collections from customers. Month November December January February Month December January $ February (2) the expected payments for direct materials purchases. $ January $ January $ $ + February $ February Prepare a cash budget for January and February using columns for each month. LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan $ Feb
Transcribed Image Text:The company expects its cash balance on January 1, 2023, to be $49,000. It wants to maintain a minimum cash balance of $39,000. Prepare schedules for (1) the expected collections from customers. Month November December January February Month December January $ February (2) the expected payments for direct materials purchases. $ January $ January $ $ + February $ February Prepare a cash budget for January and February using columns for each month. LORCH COMPANY Cash Budget For the Two Months Ending February 28, 2021 Jan $ Feb
Oriole Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: Sales Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses January $353,000 120,000 85,000 59,000 75,000 Other data are as follows: February $398,000 111,000 111,000 74,000 79,000 All sales are on account. Oriole expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. 1. Credit sales: November 2022, $198,000; December 2022, $279,000 2. Purchases of direct materials: December 2022, $91,000 3. Other receipts: January-collection of December 31, 2022, notes receivable $5,000; February-proceeds from sale of securities $5,000 4. Other disbursements: February-payment of $20,000 for land
Transcribed Image Text:Oriole Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows: Sales Direct materials purchases Direct labour Manufacturing overhead Selling and administrative expenses January $353,000 120,000 85,000 59,000 75,000 Other data are as follows: February $398,000 111,000 111,000 74,000 79,000 All sales are on account. Oriole expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. 1. Credit sales: November 2022, $198,000; December 2022, $279,000 2. Purchases of direct materials: December 2022, $91,000 3. Other receipts: January-collection of December 31, 2022, notes receivable $5,000; February-proceeds from sale of securities $5,000 4. Other disbursements: February-payment of $20,000 for land
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