Robert Williams, Marigold & Michael Fabricators' budget director, has received budget information from several managers and...

 
 

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Robert Williams, Marigold & Michael Fabricators' budget director, has received budget information from several managers and is preparing the company's cash budget. Collections from sales Payments for direct materials Payments for direct labor Payments for manufacturing overheads 78.490 Payments for Selling & administrative expenses 111,400 . . . January 477,200 80,505 . . 98,640 February 560,860 253,125 103,680 78.980 116,440 March 637.720 274,730 116.640 In addition to the information he received from these managers, Robert knows the following: Marigold & Michael plans to have $32,400 in its cash account on January 1. Marigold & Michael plans to purchase and pay cash for a piece of land in January at a cost of $86,000. Marigold & Michael plans to make a cash purchase of equipment in March at a cost of $31,000. Marigold & Michael's income taxes from last quarter totaling $26,400 will be paid in January. Marigold & Michael is required to maintain a minimum cash balance of $50,000 in its account at First National Bank. 80,240 123,160 Quarter 1,675,780 608,360 318,960 237,710 351,000 Marigold & Michael has negotiated with the First National Bank to provide a $175,000 line of credit that can be borrowed against in $1,000 increments on the first day of the month. Any repayments on the line of credit must also be made in $1,000 increments and are made on the last day of the month when cash is available. The annual interest rate on this line of credit is 6%. Any time a principal payment is made, all accrued interest to date is repaid. Prepare Marigold & Hill's cash budget for the first quarter. (Round answers to O decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter O. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) $ January IN February March 69 $ Quarter Robert Williams, Marigold & Michael Fabricators' budget director, has received budget information from several managers and is preparing the company's cash budget. Collections from sales Payments for direct materials Payments for direct labor Payments for manufacturing overheads 78.490 Payments for Selling & administrative expenses 111,400 . . . January 477,200 80,505 . . 98,640 February 560,860 253,125 103,680 78.980 116,440 March 637.720 274,730 116.640 In addition to the information he received from these managers, Robert knows the following: Marigold & Michael plans to have $32,400 in its cash account on January 1. Marigold & Michael plans to purchase and pay cash for a piece of land in January at a cost of $86,000. Marigold & Michael plans to make a cash purchase of equipment in March at a cost of $31,000. Marigold & Michael's income taxes from last quarter totaling $26,400 will be paid in January. Marigold & Michael is required to maintain a minimum cash balance of $50,000 in its account at First National Bank. 80,240 123,160 Quarter 1,675,780 608,360 318,960 237,710 351,000 Marigold & Michael has negotiated with the First National Bank to provide a $175,000 line of credit that can be borrowed against in $1,000 increments on the first day of the month. Any repayments on the line of credit must also be made in $1,000 increments and are made on the last day of the month when cash is available. The annual interest rate on this line of credit is 6%. Any time a principal payment is made, all accrued interest to date is repaid. Prepare Marigold & Hill's cash budget for the first quarter. (Round answers to O decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter O. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) $ January IN February March 69 $ Quarter

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