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Question - Walter Company has the following information for the month of March:
Cash Balance, March 1
$17,370
Collection from customers
39,950
Paid to suppliers
23,000
Manufacturing overhead
6,800
Direct labor
8,600
Selling and administrative expenses
4,900
Walter pays all expenses in the month incurred. Manufacturing overhead includes $1,550 for machinery depreciation, but the amount for selling and administrative expenses is exclusive of depreciation. Additionally, Walter also expects to buy a piece of property for $7,700 during March. Walter can borrow in increments of $1,000 and would like to maintain a minimum cash balance of $10,000.
Required: Prepare Walter's cash budget for the month of March.
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