Yagi has 12500 ncash on hand on Janusry 1 and has collected

Yagi has $12,500 ncash on hand on Janusry 1 and has collected the following budget data EEB IClick on the lcon to vie the budget dsta Assume direct labor costs and manufacturg ove head coss ?\" pod n the or t nan ed Addtor ely, aw e og has osh pay e ts to 5eln an ?0m stratse e per ses ina ng 5aanes of $50.00 per mont plus commissions hat ar\" 2% of sales psid nte mont of58le Theco uar y equres ? mnr m cash balance of $12.000 Prepare ? cash b dget to January ? d February Rond to the nearest dolrWu Yogi need to borow cash by the end of February? Begin by preparing tie aish budget for Janary, ther pr túdish bdget for February 1Conciata al iput boas. Emera ?\" forany auro balanola Rand al affa rts etiud rlotha eash budget to ??? nearust whole dol\".) Yogi Company Cash Budge Two Months Ended January 31 and Febrary 2 12.500 Beginning cash balanoe Cash receipts Cash ?vaatle Cash paymans 6,000 40 278 36 470 Purchases of drect materinls Oreot labor Manulacturing overhead Bedling and administulive expenses Total cash payments Ending cash balance belore tnancing Minimum cash balance desired Projected cash excess (deiciena)

Solution

Yogi Company

Cash Budget

Two Months Ended January 31 and February 28

January

February

Beginning Cash Balance

$    12,500.00

$    24,058.00

Cash Receipts

$ 442,500.00

$ 502,200.00

Cash Available

$ 455,000.00

$ 526,258.00

Cash Payments

    Purchase of Direct Material

$ 180,278.00

$ 160,610.00

     Direct Labor

$ 135,470.00

$ 112,626.00

     manufacturing overheads

$    54,514.00

$    52,032.00

      Selling and Administrative Expense

$    60,680.00

$    61,400.00

Total Cash Payments

$ 430,942.00

$ 386,668.00

Ending Cash Balance Before Financing

$    24,058.00

$ 139,590.00

Minimum Cash Balance Required

$    12,000.00

$    12,000.00

Projected cash Excess (deficiency)

$    12,058.00

$ 127,590.00

Financing

     Borrowing

$                   -  

$                   -  

      Repayments

$                   -  

$                   -  

Total Effect of Financing

$                   -  

$                   -  

Ending Cash Balance

$    24,058.00

$ 139,590.00

No Financing will be required at the end of February.

Working note 1

Breakup Of Selling and Administrative expenses

January

February

Commission (2% of Sales)

$    10,680.00

$    11,400.00

Salaries

$    50,000.00

$    50,000.00

$    60,680.00

$    61,400.00

Working note 2

Overhead expenses included depreciation. The amount of depreciation is deducted as depreciation is a non cash expense.

Yogi Company
Cash Budget
Two Months Ended January 31 and February 28
	January	February
Beginning Cash Balance	$    12,500.00	$    24,058.00
Cash Receipts	$ 442,500.00	$ 502,200.00
Cash Available	$ 455,000.00	$ 526,258.00
Cash Payments
Purchase of Direct Material	$ 180,278.00	$ 160,610.00
Direct Labor	$ 135,470.00	$ 112,626.00
manufacturing overheads	$    54,514.00	$    52,032.00
Selling and Administrative Expense	$    60,680.00	$    61,400.00
Total Cash Payments	$ 430,942.00	$ 386,668.00
Ending Cash Balance Before Financing	$    24,058.00	$ 139,590.00
Minimum Cash Balance Required	$    12,000.00	$    12,000.00
Projected cash Excess (deficiency)	$    12,058.00	$ 127,590.00
Financing
Borrowing	$                   -	$                   -
Repayments	$                   -	$                   -
Total Effect of Financing	$                   -	$                   -
Ending Cash Balance	$    24,058.00	$ 139,590.00