Wood Products Inc. expects to have a cash balance of $25,000 on January 1. Relevant information...

 

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Wood Products Inc. expects to have a cash balance of $25,000 on January 1. Relevant information is as follows (See image below): Required (a) Prepare a cash budget for January, February, and March. (15 marks) (b) Is there a problem with the cash budget? Provide your comments to support your answer, including possible solutions to address any problems, where applicable (10 marks) Please prepare your response in Google Sheet (Excel) or Google Doc (Word) and upload here. DUE DATE: FEB 21, 2024 NO LATER THAN MIDNIGHT! Details Cash collections from customers January $400,000 February March $450,000 $550,000 Cash payments: Suppliers $200,000 $250,000 $300,000 Direct labour & related costs $100,000 $150,000 $200,000 Production overhead $50,000 $50,000 $50,000 Selling & administration expenses $50,000 $75,000 $80,000 Wood Products Inc. expects to have a cash balance of $25,000 on January 1. Relevant information is as follows (See image below): Required (a) Prepare a cash budget for January, February, and March. (15 marks) (b) Is there a problem with the cash budget? Provide your comments to support your answer, including possible solutions to address any problems, where applicable (10 marks) Please prepare your response in Google Sheet (Excel) or Google Doc (Word) and upload here. DUE DATE: FEB 21, 2024 NO LATER THAN MIDNIGHT! Details Cash collections from customers January $400,000 February March $450,000 $550,000 Cash payments: Suppliers $200,000 $250,000 $300,000 Direct labour & related costs $100,000 $150,000 $200,000 Production overhead $50,000 $50,000 $50,000 Selling & administration expenses $50,000 $75,000 $80,000