Question

Use the following information: Beginning cash balance on March 1, $72,000. Cash receipts from sales, $300,000. Budgeted cash payments for direct materials, $140,000. Budgeted cash payments for direct labor, $80,000. Other budgeted cash expenses, $45,000. Cash repayment of bank loan, $20,000. Prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash disbursements for the month of March and the balance expected on March 31.

Answer 1

12,500

Step-by-step explanation:

Answer 2

Cash Budget for the month of March shall be:

Opening Cash = $72,000

Add: Receipts from Sale = $300,000

Less: Payments

Direct Material = ($140,000)

Direct Labor = ($80,000)

Cash Expenses = ($45,000)

Payment of loan = ($20,000)

Closing Cash Balance = $87,000

All the receipts will be added and all the expenses will be deducted as paid in cash thus will be negative.