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, $43,000. b. Budgeted cash receipts from September sales, $259,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $77,000; and September (budgeted), $104,000. 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, $35,000. e. Budgeted depreciation expense for September, $3,200. f. Budgeted cash payment for dividends in September, $55,000. g. Budgeted cash payment for Income taxes in September, $10,900. h. Budgeted cash payment for loan Interest in September, $1,600. PTO COMPANY Cash Budget Beginning cash balance Add: Cash receipts from sales Total cash available Add: Cash payments for Direct materials Direct labor Dividends Income taxes Interest on loan Total cash payments Ending cash balance SEES September S 43,000 259,000 302,000 35,000 55,000 10,900 1,600 102,500 $ 199,500

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, $43,000. b. Budgeted cash receipts from September sales, $259,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $77,000; and September (budgeted), $104,000. 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, $35,000. e. Budgeted depreciation expense for September, $3,200. f. Budgeted cash payment for dividends in September, $55,000. g. Budgeted cash payment for Income taxes in September, $10,900. h. Budgeted cash payment for loan Interest in September, $1,600. PTO COMPANY Cash Budget Beginning cash balance Add: Cash receipts from sales Total cash available Add: Cash payments for Direct materials Direct labor Dividends Income taxes Interest on loan Total cash payments Ending cash balance SEES September S 43,000 259,000 302,000 35,000 55,000 10,900 1,600 102,500 $ 199,500

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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