Answer and Explanation:
The Preparation of cash budget for the first quarter is following below:-
Cash Budget
Particulars Amount
Cash balance Beginning $36,450
Add: Receipts
Total Collection $224,775
Sale of equipment $3,645
Total receipts $228,420
Total cash available $265,870
Less: Disbursements
Direct material $52,245
Direct labor $85,050
Manufacturing overhead $42,525
Selling and
administrative overhead $54,675
Purchase of securities $17,010
Total Disbursements $251,535
Available excess available
cash over disbursements $14,335
Financing
Add: Purchase of securities $17,010
Less: Repayments -
Cash balance at ending $31,345
So, to reach at ending balance we simply added the purchase of securities and ending cash balance.
