the company has borrowed against the line of credit and a cash
balance is expected to be above $45,000 at the end of a particular
month, then repayments will be made bringing the cash balance down
to $45,000. Interest on the line of credit is paid monthly. Assume that
all line of credit transactions occur on the last day of the month.
Required:
Prepare a cash budget for the Hale Company for the 2nd quarter of
the year. Include April, May, June, and a quarter total in your budget.
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ACCT 556 Week 6 Homework Problem
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ACCT 556 Week 6 Problem Proforma Statements
The Duncan Company has just completed a number of budgets for the
coming year. The cost of goods manufactured schedule, the proforma
income statement and the balance sheet still have to be completed. The
following information is available:
Information from recent budgets for the coming year:
1. Projected sales are $1,800,000 (12,690 units)
2. Projected direct material purchases are $500,000
3. Projected direct material usage is $495,000
4. Projected direct labor expense is $400,000
5. Projected overhead is $380,000
6. Projected selling expenses are $120,000
7. Projected administrative expenses are $300,000