The remainder of the fixed selling and administrative

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includes depreciation of $7,290. The remainder of the fixed selling and administrative expense represents  current cash flows. Required: Prepare the selling and administrative expense budget for April. Level: Easy    LO:  7     Brewer, Introduction to Managerial Accounting, 3/e 157
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Ans:   133. Parliman Corporation is preparing its cash budget for August. The budgeted beginning cash balance  is $12,000. Budgeted cash receipts total $159,000 and budgeted cash disbursements total $162,000. The  desired ending cash balance is $20,000. The company has an open line of credit that allows it to borrow  up to $160,000 at any time, with interest not due until the following month. The company does not  anticipate any requirement to use this open line of credit until August. Required: Prepare the company’s cash budget for August in good form. Level: Easy    LO:  8     Ans:   134. Freet Inc. is preparing its cash budget for November. The budgeted beginning cash balance is  $11,000. Budgeted cash receipts total $126,000 and budgeted cash disbursements total $130,000. The  desired ending cash balance is $20,000. The company has an open line of credit that allows it to borrow  up to $170,000 at any time, with interest not due until the following month. The company does not  anticipate any requirement to use this open line of credit until November. Required: Prepare the company’s cash budget for November in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance. Level: Easy    LO:  8     Brewer, Introduction to Managerial Accounting, 3/e 158
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Ans:   Brewer, Introduction to Managerial Accounting, 3/e 159
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  • Fall '12
  • jane

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