No variable overhead is incurred or budgeted. The expected cash balance at the end of the current year is $3,500. Disbursements
other than for direct materials and direct labor are expected to occur in the quarter incurred. Fixed overhead expenses include $1,000 for depreciation. What is the budgeted excess or (deficiency) in cash flows at the end of the first quarter
1 answer:
Answer:
$23,000
Explanation:
The computation of the budgeted excess or (deficiency) in cash flows is shown below:-
Budgeted excess or (deficiency) in cash flows at the end of the first quarter = Cash Inflows - Cash Outflows
=$60,000 - $25,000 - ($8,000 - $1,000) - $5,000
= $60,000 - $25,000 - $7,000 - $5,000
= $23,000
Therefore for computing the Budgeted excess or (deficiency) in cash flows at the end of the first quarter we simply applied the above formula.
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