Question

22-3

Use the following information: a. Beginning cash balance on March 1. $72.000. b. Cash receipts from sales. $300.000. c. Budgeted cash payments for direct materials, $140,000. d. Budgeted cash payments for direct labor, $80.000. e. Other budgeted cash expenses, $45,000. f. Cash repayment of bank loan. $20,000. Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31. GADO COMPANY Cash Budget For Month Ended March 31 Total cash available Cash payments for Total cash payments

Answer 1

Gado company Cash Budget For the month ended March Beginning cash balance $ 72,000 Cash Receipts from sale $ 300,000 total cash available Cash payment for Direct material 140,000 Direct labor 80,000 Other expenses 45,000 Repayment of loan 20,000 372,000 Total cash payments Ending balance 285,000 87,000 Please comment if you have any doubt