Answer Happy

Use the following information to prepare the September cash budget for PTO Company. Ignore the "Loan activity" section of the budget. a. Beginning cash balance, September 1, $45,000. b. Budgeted cash receipts from September sales, $262,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $76,000; and September (budgeted), $108,000. Payments for direct materials follow: 65% in the month of purchase and 35% in the first month after purchase. d. Budgeted cash payments for direct labor in September, $31,000. e. Budgeted depreciation expense for September, $3,300. f. Budgeted cash payment for dividends in September, $58,000. g. Budgeted cash payment for income taxes in September, $10,800. h. Budgeted cash payment for loan interest in September, $1,900. Beginning cash balance Total cash available PTO COMPANY Cash Budget Total cash payments Ending cash balance September $ 0 0