Reference no: EM132955611

Walter Company has the following information for the month of March:

Cash balance, March 1$17,070

Collections from customers 38,950

Paid to suppliers 22,800

Manufacturing overhead 6,600

Direct labor 8,500

Selling and administrative expenses 4,700

Walter pays wages and other cash expenses in the month incurred. Manufacturing overhead includes $1,450 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $7,500 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $10,000.

Required:

Problem 1: Prepare Walter's cash budget for the month of March.