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27 November, 04:11

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 payments for the month of March and the balance expected on March 31

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  1. 27 November, 06:10
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    Answer and Explanation:

    The preparation of the cash budget for the month of March ended is presented below:

    Cash Budget

    Particulars Amount ($)

    Opening Cash Balance 72,000

    Add: Cash Receipts from Sales 300,000

    Total Cash Available 372,000

    Less:

    Cash Payments

    Purchases 140,000

    Salaries 80,000

    Cash Expenses 45,000

    Repayment of Bank Loan 20,000

    Total Payments - 285,000

    Closing Cash Balance 87,000

    We simply deduct the all payments from the total cash available so that the ending balance of cash could come
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