Prepare walter cash budget for the month of march

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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.

Reference no: EM131713972

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