This Website Has Been Moved to a New Link


Loading

Talbot Company had a cash balance of $75,000 on their December 31, 2010 balance sheet.

Price: $3.99


Talbot Company had a cash balance of $75,000 on their December 31, 2010 balance sheet.
The company wants to maintain a balance of at least $75,000 cash at the end of each quarter.  Other relevant cash receipts and disbursements budgeted for the quarter include:
Collections from customers
$200,000
Payments for direct materials
    30,000
Payment for Direct labor
60,000
Sale of equipment
25,000
Purchase of marketable securities
10,000
Selling & administrative expenses
50,000
Manufacturing overhead
90,000
Instructions:
a) Prepare a cash budget for the first quarter.
b) What is the importance of the cash budget?

No comments:

Post a Comment