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# Cash disbursements direct labor direct labor budget

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Unformatted text preview: ng Overhead Budget. Overhead Budget. Selling and Administrative Selling and Administrative Expense Budget. Expense Budget. 7-74 The Cash Budget Because Royal maintains Because Royal maintains a cash balance of \$30,000, a cash balance of \$30,000, the company must borrow the company must borrow \$50,000 on its line-of-credit. \$50,000 on its line-of-credit. 7-75 The Cash Budget Because Royal maintains Because Royal maintains a cash balance of \$30,000, a cash balance of \$30,000, the company must borrow the company must borrow \$50,000 on its line-of-credit. \$50,000 on its line-of-credit. Ending cash balance for April Ending cash balance for April is the beginning May balance. is the beginning May balance. 7-76 The Cash Budget 7-77 Quick Check What is the excess (deficiency) of cash available over disbursements for June? a. \$ 85,000 b. \$(10,000) c. \$ 75,000 d. \$ 95,000 7-78 Quick Check What is the excess (deficiency) of cash available over disbursements for June? a. \$ 85,000 b. \$(10,000) c. \$ 75,000 d. \$ 95,000 7-79 The Cash Budget \$50,000 × 16% × 3/12 = \$2,000 \$50,000 × 16% × 3/12 = \$2,000 Borrowings on April 1 and Borrowings on April 1 and repayment on June 30. repayment on June 30. 7-80 The Budgeted Income Statement Cash Budget om C d te le p Budgeted Income Statement With interest expense from the cash budget, Royal can prepare the budgeted income statement. 7-81 Learning Objective 9 Prepare a budgeted income statement. 7-82 The Budgeted Income Statement Royal 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 \$ 1,000,000 499,000 501,000 260,000 241,000 2,000 \$ 239,000 Sales Budget. Sales Budget. Ending Finished Ending Finished Goods Inventory. Goods Inventory. Selling and Selling and Administrative Administrative Expense Budget. Expense Budget. Cas...
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