Nadia Company expects to have a cash balance of $44,500 on January 1, 2020. Nadia has...
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Nadia Company expects to have a cash balance of $44,500 on January 1, 2020. Nadia has budgeted the following for the first two months of the year 2020: 1. Collections from customers: January $89,600; February $110,400. 2. Payments to suppliers: January $39,600; February $49,900. 3. Direct labour: January $29,900; February $34,700. Wages are paid in the month they are incurred. 4. Manufacturing overhead: January $25,100; February $30,300. Overhead costs are paid as incurred. 5. Selling and administrative expenses: January $16,100; February $22,100. These costs do not include depreciation and they are paid as incurred. 6. Sales of investments in January are expected to realize $10,100 in cash. Nadia Company wants to keep a minimum monthly cash balance of $20,000. Prepare a cash budget for January and February. NADIA COMPANY Cash Budget For 2020 January February Nadia Company expects to have a cash balance of $44,500 on January 1, 2020. Nadia has budgeted the following for the first two months of the year 2020: 1. Collections from customers: January $89,600; February $110,400. 2. Payments to suppliers: January $39,600; February $49,900. 3. Direct labour: January $29,900; February $34,700. Wages are paid in the month they are incurred. 4. Manufacturing overhead: January $25,100; February $30,300. Overhead costs are paid as incurred. 5. Selling and administrative expenses: January $16,100; February $22,100. These costs do not include depreciation and they are paid as incurred. 6. Sales of investments in January are expected to realize $10,100 in cash. Nadia Company wants to keep a minimum monthly cash balance of $20,000. Prepare a cash budget for January and February. NADIA COMPANY Cash Budget For 2020 January February
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Answer NADIA COMPANY CASH BUDGET FOR 2020 Particulars January February Opening cash balance 44500 33... View the full answer
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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