Prepare a cash budget for the first quarter


Aaron Corporation is projecting a cash balance of $41,385 in its December 31, 2013, balance sheet. Aaron's schedule of expected collections from customers for the first quarter of 2014 shows total collections of $240,300. The schedule of expected payments for direct materials for the first quarter of 2014 shows total payments of $54,735. Other information gathered for the first quarter of 2014 is sale of equipment $4,673; direct labor $93,450, manufacturing overhead $46,725, selling and administrative expenses $60,075; and purchase of securities $16,020. Aaron wants to maintain a balance of at least $33,375 cash at the end of each quarter.

Prepare a cash budget for the first quarter.

 

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Accounting Basics: Prepare a cash budget for the first quarter
Reference No:- TGS047266

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