Blue Lagoon Corporation is projecting a cash balance of $30,962 in its December
ID: 2381207 • Letter: B
Question
Blue Lagoon Corporation is projecting a cash balance of $30,962 in its December 31, 2011, balance sheet. Blue Lagoon's schedule of expected collections from customers for the first quarter of 2012 shows total collections of $179,924. The schedule of expected payments for direct materials for the first quarter of 2012 shows total payments of $41,171. Other information gathered for the first quarter of 2012 is: sale of equipment $3,719; direct labor $69,697, manufacturing overhead $34,842, selling and administrative expenses $44,582; and purchase of securities $12,325. Blue Lagoon wants to maintain a balance of at least $24,800 cash at the end of each quarter.
Instructions
Complete the cash budget for the first quarter. (List amounts from largest to smallest e.g. 10, 5, 3, 2. If answer is zero, please enter 0. Do not leave any fields blank.)
For the Quarter Ending March 31, 2012
BLUE LAGOON CORPORATION Cash BudgetFor the Quarter Ending March 31, 2012
Beginning cash balance$
Add: ReceiptsTotal receipts
Total available cash
Less: Disbursements
Total disbursements
Excess of available cash over cash disbursements Financing
Ending cash balance
$
Blue Lagoon Corporation is projecting a cash balance of $30,962 in its December 31, 2011, balance sheet. Blue Lagoon's schedule of expected collections from customers for the first quarter of 2012 shows total collections of $179,924. The schedule of expected payments for direct materials for the first quarter of 2012 shows total payments of $41,171. Other information gathered for the first quarter of 2012 is: sale of equipment $3,719; direct labor $69,697, manufacturing overhead $34,842, selling and administrative expenses $44,582; and purchase of securities $12,325. Blue Lagoon wants to maintain a balance of at least $24,800 cash at the end of each quarter.Explanation / Answer
Beginning cash balance $ 30,962
Add: Receipts
Collection from Customer $ 179,924 Sale of Equipment $ 3,719 Total receipts $ 183,643 Total available cash $ 214,605 Less: Disbursements
Direct Material $ 41,171 Direct labor $ 69,697 Manufacturing Overhead $ 34,842 selling and administrative expenses $ 44,582 purchase of securities $ 12,325 Total disbursements $ 202,617 Excess of available cash over cash disbursements $ 11,988 Financing
Borrowing $ 12,812 Repayment $ - Ending cash balance $ 24,800