The Crawford Company begins operations with a cash balance of 360,000 on January 1. 2014. Relevant quarterly budgeted data pertaining to a cash budget for the first two quarters of the year are as follows:
Sales: (1)$140.000. (2) $250,000. All sales are on account: 60% of the sales are expected to be collected in cash -n the period of sale, and the bafance n the following quarter.
Direct materials purchases: (1) $65.000. (2) $165.000. 40% of each purchase is paid in cash at the time of the purchase. and the balance is paid in the following quarter.
Direct labor: (1) $40.000, (2) 550,000. Wages are paid at the time they are incurred.
Manufacturng overhead: (1) $35.000, (2) 530,000. These costs induce deprecation of $3.200 per quarter. All cash overhead costs are paid as incurred.
Selling and administrative expenses: (1) $18,000. (2) 519,000. These expenses include 51,000 of depreciation per quarter. All cash selling and administrative costs are paid when incurred.
The company has a line of credit at a local bank that enables it to borrow up to $30.000 per quarter. Interest on any loans and income taxes may be ignored.
The Crawford Company wants to maintain a minimum quarterly cash balance of $40,000.
Instructions
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
