CHAPTER 14 Betty DeRose, Inc. manufactures a single product. The company is in the process of preparing its 2009 master budget and has the following…

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S&A expenses

100,000 J

100,000 F

100,000 M

The budgeted overhead includes $20,000 per month in depreciation and the budgeted selling &

administrative costs include $10,000 per month in depreciation.

(4)       Betty wants to maintain a cash balance of $20,000 at the end of each month. Any excess funds will

be used to repay loans while Betty will need to borrow funds if she is short of the $20,000 at the end

of any given month. At January 1, 2009, Betty had $20,000 of cash on hand.


Prepare a cash budget for January – March, 2009

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