The cash budget schedule of expected cash

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Unformatted text preview: minimum cash balance of $30,000 Ø། Borrows on the first day of the month and repays loans on the last day of the month Ø། Pays a cash dividend of $49,000 in April Ø། Purchases $143,700 of equipment in May and $48,300 in June (both purchases paid in cash) Ø། Has an April 1 cash balance of $40,000 The Cash Budget Schedule of Expected Cash Collections. The Cash Budget Schedule of Expected Cash Disbursements. Direct Labor Budget. Manufacturing Overhead Budget. Selling and Administrative Expense Budget. The Cash Budget Because ABC maintains a cash balance of $30,000, the company must borrow $50,000 on its line-of-credit. The Cash Budget Because ABC maintains a cash balance of $30,000, the company must borrow $50,000 on its line-of-credit. Ending cash balance for April is the beginning May balance. The Cash Budget The Cash Budget $50,000 × 16% × 3/12 = $2,000 Borrowings on April 1 and repayment on June 30. The Budgeted Income Statement Cash Budget Budgeted Income Statement With interest expense from the cash budget, ABC can prepare the budgeted income statement. The Budgeted Income Statement Sales Budget. ABC Company Budgeted Income Statement For the Three Months Ended June 30 Sales (100,000 units @ $10) Cost of goods sold (100,000 @ $4.99) Gross margin Selling and administrative expenses Operating income Interest expense Net income Cash Budget. $ 1,000,000 499,000 501,000 260,000 241,000 2,000 $ 239,000 Ending Finished Goods Inventory. Selling and Administrative Expense Budget. The Budgeted Balance Sheet ABC...
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