Aaron Corporation provided financial information for the first quarter of 2014 including an expected cash balance of $31,474 as of December 31, 2013. They expect $180,175 in customer collections and $41,376 in payments for direct materials. Other expenses include $70,193 for direct labor, $35,188 for manufacturing overhead, $44,980 for selling and administrative expenses, and $12,176 to purchase securities. Aaron wants to prepare a cash budget to maintain a minimum cash balance of $25,202 and ensure sufficient cash flow.

1. PLEASE for this question, put the answers in a table like the box below so I can understand the
answers and know what they are! Thank you!
*Exercise 23-13 Aaron Corporation is projecting a cash balance of $31,474 in its December 31,
2013, balance sheet. Aaron's schedule of expected collections from customers for the first
quarter of 2014 shows total collections of $180,175. The schedule of expected payments for
direct materials for the first quarter of 2014 shows total payments of $41,376. Other information
gathered for the first quarter of 2014 is sale of equipment $3,571, direct labor $70,193,
manufacturing overhead $35,188, selling and administrative expenses $44,980 and purchase of
securities $12,176. Aaron wants to maintain a balance of at least $25,202 cash at the end of each
quarter Prepare a cash budget for the first quarter. AARON CORPORATION Cash Budget For
the Quarter Ended March 31, 2014
Solution
Aaron Corporation Cash Budget For the Quarter ended March 31, 2014 Particulars Amount ($)
Amount ($) Beginning cash balance 31474 Receipts: Collections from customers 180175 Sale of
equipments 3571 Â Â Total receipts 183746 Total Available cash 215220 Disbursements: direct
materials 41376 direct labour 70193 manufacturing overhead 35188 selling and administrative
expenses 44980 purchase of securities 12176 Total Disbursements 203913 Excess of available
cash over cash disbursements 11307 Borrowings 13895 Ending cash balance 25202