90.2K

Verified Solution

Link Copied!

Yogi has $10,500 in cash on hand on January 1 and has collected the following budget data: (Click on the icon to view the budget data.) Assume direct labor costs and manufacturing overhead costs are paid in the month incurred. Additionally, assume Yogi has cash payments for selling and administrative expenses including salaries of $55,000 per month plus commissions that are 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $20,000. Prepare a cash budget for January and February. Round to the nearest dollar. Will Yogi need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February. (Complete all input fields. Enter a "0" for any zero balances. Round all amounts entered into the cash budget to the nearest whole dollar.) Yogi Company Cash Budget - Two Months Ended January 31 and February 28 Data table January Beginning cash balance January February Cash receipts Sales $ Cash available Cash receipts from customers 525,000 $ 564,000 442,600 180,344 Cash payments: 502.400 160,412 Cash payments for direct materials purchases Direct labor costs 112,876 135,360 55,628 53,348 Manufacturing overhead costs (includes depreciation of $1,700 per month) Print Done Purchases of direct materials Direct labor Manufacturing overhead Selling and administrative expenses Total cash payments Ending cash balance before financing Minimum cash balance desired Projected cash excess (deficiency) Financing: Borrowing Principal repayments Total effects of financing Ending cash balance

Answer & Explanation Solved by verified expert

See Answer