Reference no: EM131599401
Problem - Use the following information to prepare the September cash budget for PTO Manufacturing Co. The following information relates to expected cash receipts and cash disbursements for the month ended September 30.
a. Beginning cash balance. September 1, $45,000.
b. Budgeted cash receipts from sales in September, $263,000.
c. Raw materials are purchased on account. Purchase amounts are: August (Actual), $76.000, and September (budgeted), $102,000. Payments for direct materials are made as follows: 65% in the month of purchase and 35% in the month following purchase.
d. Budgeted cash disbursements for direct labor in September, $32,000.
e. Budgeted depreciation expense for September, $3,300.
f. Other cash expenses budgeted for September, $51,000.
g. Accrued income taxes payable in September, $10,800.
h. Bank loan interest payable in September, $1.400.
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