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, $44,000. b. Budgeted cash receipts from September sales, $261,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $78,000; and September (budgeted), $106,000. 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, $34,000. .. Budgeted depreciation expense for September, $3,300. f. Budgeted cash payment for dividends in September, $54.00C. g. Budgeted cash payment for income taxes in September, $10,200. h. Budgeted cash payment for loan interest in September, $1,200.

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, $44,000. b. Budgeted cash receipts from September sales, $261,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $78,000; and September (budgeted), $106,000. 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, $34,000. .. Budgeted depreciation expense for September, $3,300. f. Budgeted cash payment for dividends in September, $54.00C. g. Budgeted cash payment for income taxes in September, $10,200. h. Budgeted cash payment for loan interest in September, $1,200.

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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