B 4 Anderson Incorporated is a manufacturer of sketching pads. The following information is available from the company's budgets: 5 Selling & Direct Cash Administrative Manufacturing Direct Materials 6 7 April 8 May 9 June 10 11 Depreciation 12 Receipts Expenses Overhead Labor Purchases $240,000 $92,000 $50,400 $43,200 $74,400 255,000 275,000 77,000 82,000 52,800 45,900 79,050 56,000 49,500 85,250 $12,000 13 14 15 Manufacturing overhead includes depreciation of $12,000 per month. There is no depreciation included in the selling and administrative expenses. All expenses are paid in the month they are incurred. Cash at the beginning of the period was $20,000. The company wants to maintain a minimum cash balance of $20,000. There were no loans outstanding on May 1. The line of credit with the bank allows for borrowings in $1,000 increments. If the loan is paid off by the end of the quarter, there is no interest. PART #1: Prepare a cash budget To prepare the cash budget you will use the available data provided above. When preparing the budget, you must cell reference any values you use. 16 17 18 19 20 21 22 23 24 25 Beginning cash balance Plus: Budgeted cash receipts 26 Less: Budgeted cash payments for: Anderson Incorporated Cash Budget For the Quarter Ending June 30 April $20,000 May $20,000 June $20,250 WHEN YOU NEED SERIOUS HELP WITH YOUR BUDGET 27 28 29 Direct labor 30 Selling & administrative expenses Manufacturing overhead (less depreciation*) Direct materials purchases 31 Cash balance before financing 32 33 PART #2: IF statements 34 Write an =IF statement to make a decision if Anderson Incorporated needs to borrow from the bank to meet its minimum cash requirement in cells C33, D33, and E33. 35 April May June 36 37 Does Anderson need to borrow from the bank?
B 4 Anderson Incorporated is a manufacturer of sketching pads. The following information is available from the company's budgets: 5 Selling & Direct Cash Administrative Manufacturing Direct Materials 6 7 April 8 May 9 June 10 11 Depreciation 12 Receipts Expenses Overhead Labor Purchases $240,000 $92,000 $50,400 $43,200 $74,400 255,000 275,000 77,000 82,000 52,800 45,900 79,050 56,000 49,500 85,250 $12,000 13 14 15 Manufacturing overhead includes depreciation of $12,000 per month. There is no depreciation included in the selling and administrative expenses. All expenses are paid in the month they are incurred. Cash at the beginning of the period was $20,000. The company wants to maintain a minimum cash balance of $20,000. There were no loans outstanding on May 1. The line of credit with the bank allows for borrowings in $1,000 increments. If the loan is paid off by the end of the quarter, there is no interest. PART #1: Prepare a cash budget To prepare the cash budget you will use the available data provided above. When preparing the budget, you must cell reference any values you use. 16 17 18 19 20 21 22 23 24 25 Beginning cash balance Plus: Budgeted cash receipts 26 Less: Budgeted cash payments for: Anderson Incorporated Cash Budget For the Quarter Ending June 30 April $20,000 May $20,000 June $20,250 WHEN YOU NEED SERIOUS HELP WITH YOUR BUDGET 27 28 29 Direct labor 30 Selling & administrative expenses Manufacturing overhead (less depreciation*) Direct materials purchases 31 Cash balance before financing 32 33 PART #2: IF statements 34 Write an =IF statement to make a decision if Anderson Incorporated needs to borrow from the bank to meet its minimum cash requirement in cells C33, D33, and E33. 35 April May June 36 37 Does Anderson need to borrow from the bank?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:B
4
Anderson Incorporated is a manufacturer of sketching pads. The following information is available from the company's budgets:
5
Selling &
Direct
Cash
Administrative Manufacturing
Direct
Materials
6
7
April
8
May
9
June
10
11
Depreciation
12
Receipts
Expenses
Overhead
Labor
Purchases
$240,000
$92,000
$50,400
$43,200
$74,400
255,000
275,000 77,000
82,000
52,800
45,900
79,050
56,000
49,500
85,250
$12,000
13
14
15
Manufacturing overhead includes depreciation of $12,000 per month. There is no depreciation included in the selling and administrative expenses. All expenses are paid in the month they are incurred. Cash at the
beginning of the period was $20,000. The company wants to maintain a minimum cash balance of $20,000. There were no loans outstanding on May 1. The line of credit with the bank allows for borrowings in $1,000
increments. If the loan is paid off by the end of the quarter, there is no interest.
PART #1: Prepare a cash budget
To prepare the cash budget you will use the available data provided above. When preparing the budget, you must cell reference any values you use.
16
17
18
19
20
21
22
23
24
25
Beginning cash balance
Plus: Budgeted cash receipts
26
Less: Budgeted cash payments for:
Anderson Incorporated
Cash Budget
For the Quarter Ending June 30
April
$20,000
May
$20,000
June
$20,250
WHEN YOU NEED SERIOUS
HELP WITH YOUR BUDGET
27
28
29
Direct labor
30
Selling & administrative expenses
Manufacturing overhead (less depreciation*)
Direct materials purchases
31
Cash balance before financing
32
33
PART #2: IF statements
34
Write an =IF statement to make a decision if Anderson Incorporated needs to borrow from the bank to meet its minimum cash requirement in cells C33, D33, and E33.
35
April
May
June
36
37
Does Anderson need to borrow from the bank?
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education