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CASH BUDGET
纪录片幼儿园 The cash budget is one of the most important elements of the budgeted balance sheet. The cash budget prents the expected receipts (inflows) and payments (outflows) of cash for a period of time. Information from the various operating budgets, such as the sales budget, the direct materials purchas budget, and the lling and administrative expens budget, affects the cash budget. In addition, the capital expenditures budget, dividend policies, and plans for equity or long term debt financing also affect the cash budget. The following shows the monthly cash budget for January, February and March 2008, for the company Colt manufacturing, Inc.
Estimated Cash Receipts
Estimated cash receipts are planned additions to cash from sales and other resources, such as issuing curities or collecting interest. A supporting schedule can be ud in determining the collections from sales. To illustrate this schedule, assume the following information:
Accounts receivable, January 1, 2000 ...................................................................... $270,000流鼻血吃什么
January February March
Budgeted sales $1,080,000 $1,240,000 $970,000
The company Colt Manufacturing, Inc. expects to ll 10% of its merchandi for cash. Of the remaining 90% of the sales on account, 60% are expected to be collected in the month of the sale and the remainder in the next month. Using this information we prepare the schedule of collection of sales, shown in the following table. The cash receipt
s from sales on account are determined by adding the amounts collected from credit sales earned in the current period (60%) and the amounts accrued from sales in the previous period as accounts receivable.
父子歌曲| 元宵节彩灯有哪些 Colt Manufacturing, Inc.
Schedule of Collections from Sales
For the Three Months Ending March 31, 2008 阅读的重要性和意义 |
. | January | February | March |
Receipts from cash sales: | | | |
Cash sales (10% X current month's sales - Note A) . |
$108,000
|
$124,000
|
$97,000
|
| | | |
Receipts from sales on account: | | | |
Collections from prior month's sales (40% of previous month's credit sales - Note B) |
$370,000
|
$388,800
|
$446,400
|
Collections from current month's sales (60% of current month's credit sales - Note C) |
583,300
|
669,600
|
523,800
|
Total receipts from sales on account | $953,200 | $1,058,400 | $970,200 |
| | | |
NOTE A:预算松弛 慎独作文 $108,000 = $1,080,000 X 10%
$124,000 = $1,240,000 X 10%
$97,000 = $970,000 X 10%
NOTE B: $370,000, given as January 1, 2008 Accounts Receivable balance.
$388,800 = $1,080,000 X 90% X 40%
$446,400 = $1,240,000 X 90% X 40%
NOTE C: $583,200 = $1,080,000 X 90% X 60%
$669,600 = $1,240,000 X 90% X 60%
$523,800 = $970,000 X 90% X 60%
Estimated Cash Payments
Estimated cash payments are planned reductions in cash from naufacturing costs, lling and administrative expens, capital expenditures, and other sources, such as bu
ying curities or paying interest or dividends. a supporting schedules can be ud in estimating the cash payments for manufacturing costs. Assume the following information for the company Colt Manufacturing, Inc.:
Accounts payable, January 1, 2000 ...................................................................... $190,000
January February March
Manufacturing costs $840,000 $780,000 $812,000
Depreciation expen on machines is estimated to be $24,000 per month and is included in the manufacturing costs. The accounts payable were incurred for manufacturing costs. The company expects to pay 75% of the manufacturing costs in the month in which they are incurred and the balance in the next month. Using this information, a schedule of payments has been prepared as shown in the next table:
Colt Manufacturing, Inc.
Schedule of Payments for Manufacturing Costs
For the Three Months Ending March 31, 2008 |
| January | February | March |
Payments of prior month's manufacturing costs | | | |
25% X previous month's manufacturing costs (less depreciation) - Note A |
$190,000
|
$204,000
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$189,000
|
. | | | |
Payments of current month's manufacturing costs | | | |
75% X current month's manufacturing costs (less depreciation) - Note B |
$612,000
|
$567,000
|
$591,000
|
Total payments | $802,000 | $771,000 | $780,000 |
| | | |
NOTE A: $190,000, given as January 1, 2008 Accounts Payable balance.
$204,000 = ($840,000 - $24,000) X 25%
$189,000 = ($780,000 - $24,000) X 25%
NOTE B: $612,000 = ($840,000 - $24,000) X 75%
$567,000 = ($780,000 - $24,000) X 75%
$591,000 = ($812,000 - $24,000) X 75%
Completing the Cash Budget
To complete the cash budget for the company Colt Manufacturing, Inc., assume that the following is expected by the company:
Cash balance on January 1 ...................................................................... $280,000
Quarterly taxes paid on March 31 .......................................................... $150,000
Quarterly interest expen paid on January 10 ..................................... $22,500
Quarterly interest revenue received on march 21 .................................. $24,500
Sewing equipment purchad ................................................................... $274,000
