Solution-Building a cash budget with provide information

Building a cash budget with provide information

Assignment Help Managerial Accounting

Reference no: EM131706608

The O'Brien Vineyards makes and sells an awarding Pinot Noir. Each Bottle of Pinot Noir sells for $24 and has a unit variable cost of $14.
Put together a Cash Budget.

- Maintains a 12% (1% per month) open line of credit for $75,000.00
- Maintains a minimum cash balance of $20,000.00
- Borrows on the first day of the month and repays loans last day of the next month (for example, if you were to borrow for July, which is really to meet August 1 beginning balance, you would repay end of September. You have use of the funds for 2 full months).
- Pays a cash dividend of $10,000.00 in July.
- Purchased $38,000.00 of oak barrels in August and $48,400.00 of oak barrels in September both purchases of equipment paid for in cash.
- Cash balance at July 1st is $22,500.00

Summarized budget information:

	July	August	September
Beginning Cash	$22,500.00
Cash Collections	$70,000.00	$88,000.00	$129,650.00
Total Cash Available	$92,500.00

Cash Disbursements
Materials	$18,000.00	$19,500.00	$17,700.00
Direct Labor	$8,000.00	$9,200.00	$8,500.00
MOH	$24,000.00	$27,000.00	$25,000.00
Selling and Admin	$18,000.00	$19,300.00	$18,850.00
Equipment Purchase	$0.00	$38,000.00	$48,400.00
Dividend	$10,000.00
Total Disbursements

Excess (Deficiency)

Financing
Borrowing
Repayments
Interest
Total Financing
Ending Cash Balance

Reference no: EM131706608

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Building a cash budget with provide information

Reference no: EM131706608

Reference no: EM131706608

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