Use the following information to prepare the September cash budget for PTO Company, Ignore the "Loan activity" section of the budget a. Beginning cash balance, September 1, $49,000. b. Budgeted cash receipts from September sales, $257,000. c. Direct materials are purchased on credit Purchase amounts are August (actual), $70,000; and September (budgeted). $101,000. Payments for direct materials follow. 65% in the month of purchase and 35% in the first month after purchase. d. Budgeted cash payments for direct labor in September, $40,000. e. Budgeted depreciation expense for September, $3.100. f. Budgeted cash payment for dividends in September, $50.000. g. Budgeted cash payment for income taxes in September, $10,200. h. Budgeted cash payment for loan interest in September, $1,600. PTO COMPANY Cash Budget September Beginning cash balance Total cash available Total cash payments Ending cash balance %24

Use the following information to prepare the September cash budget for PTO Company, Ignore the "Loan activity" section of the budget a. Beginning cash balance, September 1, $49,000. b. Budgeted cash receipts from September sales, $257,000. c. Direct materials are purchased on credit Purchase amounts are August (actual), $70,000; and September (budgeted). $101,000. Payments for direct materials follow. 65% in the month of purchase and 35% in the first month after purchase. d. Budgeted cash payments for direct labor in September, $40,000. e. Budgeted depreciation expense for September, $3.100. f. Budgeted cash payment for dividends in September, $50.000. g. Budgeted cash payment for income taxes in September, $10,200. h. Budgeted cash payment for loan interest in September, $1,600. PTO COMPANY Cash Budget September Beginning cash balance Total cash available Total cash payments Ending cash balance %24

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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