商洛学院经济与管理学院管理会计课件Chapter 5 Profit Planning.pptVIP

9-* * You can see how similar this schedule is to the manufacturing overhead schedule. 9-* * Learning objective number 8 is to prepare a cash budget. 9-* * The preparation of the cash budget can be quite complex. We have to pay close attention to details from our other budgets if we are to be successful in preparing the cash budget.On your screen, we listed the four major sections of the cash budget. As we prepare the budget, you will clearly see these four sections. 9-* * It would be a good idea to jot down this additional information or merely print the screen. We will need all of this information to prepare the cash budget. 9-* * We began April with $40,000 in cash. To this amount, we add our expected cash collections from sales of $170,000 for the month of April. We complete the first section by calculating the total cash available of $210,000.Now, let’s continue with the budget preparation. 9-* * During April, we expect to pay $40,000 for raw materials, $15,000 for direct labor, $56,000 for cash manufacturing overhead, and $70,000 for selling and administrative expense. This is not the total manufacturing overhead because we have excluded noncash depreciation costs. During April, the Board of Directors paid a cash dividend of $49,000. We have not completed the second major section of the cash budget, the cash disbursements. 9-* * The third section of the cash budget is to determine any cash excess or deficiency. In the month of April, we expect to have a cash deficiency of $20,000. Since Royal has a policy that the company will always maintain an ending cash balance of $30,000, it will have to borrow $15,000 against its line-of-credit in April. 9-* * After Royal borrows on its line-of-credit, it will have an ending cash balance of $30,000 dollars. The ending cash balance for April becomes the beginning cash balance for May.Let’s complete the cash budget for the month of May. 9-* * Refer back to our previous budgets to get the cash collection, cash disb