Use the Following Information to Prepare the June Cash Budget

question 167

Essay

Use the following information to prepare the June cash budget for Springer Company.It should show expected cash receipts and cash payments for the month and the cash balance expected on June 30.
a.Beginning cash balance on June 1 is $52,000.
b.Cash receipts from sales are expected to be $1,625,000.
c.Cash payments for direct materials and direct labor are expected to be $246,500 and $573,100,respectively.
d.Budgeted cash payments for variable overhead is $340,000.
e.Budgeted depreciation,the only fixed overhead estimated for June: $24,000.
f.Cash selling and administrative expenses budgeted for June are $282,000.
g.Bank loan interest due in June: $8,000.
i.Loan payment of $50,000 should be made if the preliminary cash balance is greater than $200,000.

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Definitions:

Nucleic Acid

Biological macromolecules, such as DNA or RNA, that store genetic information and are involved in the synthesis of proteins.

Protein

Large, complex molecules essential for body structure, function, and regulation of tissues and organs.

Hydroxyl Group

A functional group consisting of an oxygen atom bonded to a hydrogen atom (-OH), common in alcohols and many other organic compounds.

Methane

A greenhouse gas consisting of one carbon atom and four hydrogen atoms, CH4, contributing to global warming.