(Solved): Use the following information to prepare the September cash budget for PTO Company. Ignore the Lo ...

Use the following information to prepare the September cash budget for PTO Company. Ignore the “Loan activity” section of the budget.

1. Beginning cash balance, September 1, $48,000.
2. Budgeted cash receipts from September sales, $264,000.
3. Direct materials are purchased on credit. Purchase amounts are August (actual), $70,000; and September (budgeted), $101,000. Payments for direct materials follow: 65% in the month of purchase and 35% in the first month after purchase.
4. Budgeted cash payments for direct labor in September, $31,000.
5. Budgeted depreciation expense for September, $3,400.
6. Budgeted cash payment for dividends in September, $56,000.
7. Budgeted cash payment for income taxes in September, $10,300.
8. Budgeted cash payment for loan interest in September, $1,400.

Fortune Incorporated is preparing its master budget for the first quarter. The company sells a single product at a price of $25 per unit. Sales (in units) are budgeted at 153,000 for the first quarter. Cost of goods sold is $12 per unit. Other expense information for the first quarter follows.
 

Sales Commissions	11%	of sales dollars
Rent	$ 49,000	per quarter
Advertising	$ 504,000	per quarter
Office salaries	$ 262,000	per quarter
Depreciation	$ 131,000	per quarter
Interest	1.75%	quarterly on $220,000 note payable
Tax rate	40%

 
Prepare a budgeted income statement for the first quarter ended March 31. (Round your intermediate and final answers to the nearest whole dollar.)
 

Beginning cash balance Add: Cash receipts from sales Total cash available Less: Cash payments for Direct materials Direct labor Dividends Income taxes Interest on loan PTO COMPANY Cash Budget Total cash payments Ending cash balance September $ $ 48,000 264,000 312,000 0 312,000 FORTUNE, INCORPORATED Budgeted Income Statement For Quarter Ended March 31 Selling, general and administrative expenses $ 0 O