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Current Attempt in Progress Your answer is partially correct. Chris Anderson, Sheffield & Daniel Fabricators' budget director, has received budget information from several managers and is preparing the company's cash budget. January February March Quarter Collections from sales 477,200 560,860 637,720 1,675,780 Payments for direct materials 80,505 253,125 280,730 614,360 Payments for direct labor 98,640 103,680 116,640 318,960 Payments for manufacturing overheads 78,490 78,980 80,240 237,710 Payments for Selling & administrative expenses 111,400 116,440 123,160 351,000 In addition to the information he received from these managers, Chris knows the following: . Sheffield & Daniel plans to have $32,400 in its cash account on January 1. Sheffield & Daniel plans to purchase and pay cash for a piece of land in January at a cost of $90,000. Sheffield & Daniel plans to make a cash purchase of equipment in March at a cost of $30,000. . Sheffield & Daniel's income taxes from last quarter totaling $26,400 will be paid in January. Sheffield & Daniel is required to maintain a minimum cash balance of $50,000 in its account at First National Bank. Sheffield & Daniel has negotiated with the First National Bank to provide a $175,000 line of credit that can be borrowed against in $1,000 increments on the first day of the month. Any repayments on the line of credit must also be made in $1,000 increments and are made on the last day of the month when cash is available. The annual interest rate on this line of credit is 6%. Any time a principal payment is made, all accrued interest to date is repaid. Prepare Sheffield & Hill's cash budget for the first quarter. (Round answers to O decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) January February Beginning cash balance to 32,400 $ 50 Collections from sales 477,200 560 Total cash available to spend + 509,600 61 Less Disbursements Manufacturing overhead 78,490 i 78,98 Payments for direct materials 80,505 i 253,12 Direct labor 98,640 i 103,681borrowed against in $ 1, UU increments on the first day of the month. Any repayments on the line of credit must also be made in $1,000 increments and are made on the last day of the month when cash is available. The annual interest rate on this line of credit is 6%. Any time a principal payment is made, all accrued interest to date is repaid. Prepare Sheffield & Hill's cash budget for the first quarter. (Round answers to 0 decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) January February Beginning cash balance 32,400 50 Collections from sales 477,200 560 Total cash available to spend 509,600 611 Less + Disbursements Manufacturing overhead 78,490 78,98 Payments for direct materials 80,505 253,12 Direct labor 98,640 i 103,68 Selling & administrative expenses + 111,400 116,440 Land and Equipment purchases 90,000 i Income taxes 26,400 i Total cash disbursements 485,435 55 Cash excess (deficiency) 24,165 58 Minimum cash balance 50,000 50,00( Cash excess (needed) -25,835 Financing Borrowings 26,000 Repayments -8,00 Interest Total financing 26,000 -8 Ending cash balance 50,165 50borrowed against in $ 1,VOU increments on the first day of the month. Any repayments on the line of credit must also be made in $1,000 increments and are made on the last day of the month when cash is available. The annual interest rate on this line of credit is 6%. Any time a principal payment is made, all accrued interest to date is repaid. Prepare Sheffield & Hill's cash budget for the first quarter. (Round answers to O decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) January February March 32,400 50,165 $ 50,670 477,200 560,860 637,720 509,600 611,025 688,390 78,490 78,980 i 80,240 i 80,505 253,125 i 280,730 98,640 103,680 i 116,640 i 111,400 116,440 i 123,160 i 90,000 30,000 26,400 i 485,435 552,225 630,770 24,165 58,800 57,620 50,000 50,000 50,000 i -25,835 8,800 7,620 26,000 -8,000 i -7,000 i -130 -90 i 26,000 -8,130 -7,090 i $ 50,165 50,670 $ 50,530made in $1,000 increments and are made on the last day of the month when cash is available. The annual interest rate on this line of credit is 6%. Any time a principal payment is made, all accrued interest to date is repaid. Prepare Sheffield & Hill's cash budget for the first quarter. (Round answers to O decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) February March Quarter 50,165 50,670 32,400 560,860 637,720 16,757,80 611,025 688,390 17,081,80 78,980 i 80,240 i 237,710 i 253,125 i 280,730 614,360 i 103,680 i 116,640 i 318,960 i 116,440 i 123,160 i 351,000 i 30,000 120,000 i 26,400 i 552,225 630,770 16,684,30 58,800 57,620 39,750 50,000 i 50,000 50,000 i 8,800 7,620 10,250 26,000 -8,000 i -7,000 -15,000 i -130 -90 i -220 -8,130 -7,090 10,780 50,670 $ 50,530 50,530

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