Marcal Company has preparedh fcllowing cchad.ies and adsban on Cick the icon to
ID: 2548115 • Letter: M
Question
Marcal Company has preparedh fcllowing cchad.ies and adsban on Cick the icon to view the cath recoipts chedulc.) Ci : Clic thc ic cn 10 vicw the adional information) Reterence balancc matonal purchas paid in Fabnuary Ccmpkte a caah hudgst hor Marcal Company tor January abnary Cash Receigts from Customers 4100 7200 Total payments for direct matcrials Marcel Campay Cash Budget JanuaryFabruaryMarch lotal Total sales S 12400 14,6005 13400 40,4D lanuary. Fehruary, and M JanuaryFebruary March Total lotal payments tor dinact labor 3,YDD Cash Recelpts from Customers: Ca57 receipts 1.840 3,000 4,040 Usttiee for plan Cash aaiable etsals olection oflanary nlan.ary Property lszes 3,000 T20 720 Purthases of direzt materia 10.2 2.1 Selling and Administrative Expenses: LHltiss for cffice Property taxcs on oficc Off ce salarcs Total payments for Selling and Admin. expenses Manufacturing overhcad Seling and adrinislralive experses 3 2.19 1,020 1,440 2,000 14,460 9.380 it sales, colecion of Marth saes in 4,000 4,000 4 0C0 Tonal caah paymants Fndng caah halanca befcrs inaning Mirimum cash blace desired Prvjected cash eavess defcieny) Hnancing 4,510 Accounts Racavabil halan, March 3 S 11,040 11,30 13,53037,200 Total cash payments Acccount balances, Mch 31: Prepaid Property Taes Accounts Paryable $ 3.330 More Info Principal repayments 3 4,200 Martl's beinning cah bakrce is 34,500 and Martel desires to maintain mirimumending cash balance o 31,500 Mae bonere cash as reeded ate beainnina of cach month in incremant t$1,000 and rapas the amcunts | borrowed in incremens of 51.000 at the be nning of mont-12 when excess cash is available Tha inter-st taia an annuntR berm-ed 1 1 % per year Interest paid at the beginnng of the menth on tha outtandng ba anca fromthe previous marth nt ll Done Check AiswerExplanation / Answer
MARCEL COMPANY Cash Budget January , February and March January February March Total Beginning Cash Balance 4500 5100 5622 4500 Cash Receipts 10540 14270 13580 38390 Cash Available 15040 19370 19202 42890 Cash Payments: Purchase of raw material 0 3100 4100 7200 Direct Labor 3500 3400 4200 11100 Manufacturing Overhead 3000 720 720 4440 Selling and administrative expenses 5440 4510 4510 14460 Interest expense 18 18 Total cash payments 11940 11748 13530 37218 Ending cash balance before financing 3100 7622 5672 5672 Minimum cash balance 4500 4500 4500 4500 Projected cash excess / (deficiency) -1400 3122 1172 1172 Financing Borrowings 2000 2000 Repayments -2000 -2000 Total effect of financing 2000 -2000 0 Ending cash balance 5100 5622 5672 5672