Q3. The Alex ple, a merchandising firm, has planned the following sales for the next four months: March $50000 April $70000 May $90000 June S60000 Total budget sales Sales are made 40% for cash and 60% on account. From experience, the company has leamed that a month's sales on account are collected 70% in the month of sale, 20% in the first month following sale, 8% in the second month following sale and 2 % in uncollected. Assume the following budgeted data for June also occurred in cash: | $52000 $10000 |Purchases Selling and administrative expenses Depreciation Equipment purchase | Cash balance, beginning of June $8000 $15000 $6000 Using this data above, prepare a cash budget for the month of June. The company requires a minimum cash balance of $4,000 to start a month. Clearly show any borrowing needed during the month in the budget. No interest will be paid for the loan taken (Show all the calculations).
Q3. The Alex ple, a merchandising firm, has planned the following sales for the next four months: March $50000 April $70000 May $90000 June S60000 Total budget sales Sales are made 40% for cash and 60% on account. From experience, the company has leamed that a month's sales on account are collected 70% in the month of sale, 20% in the first month following sale, 8% in the second month following sale and 2 % in uncollected. Assume the following budgeted data for June also occurred in cash: | $52000 $10000 |Purchases Selling and administrative expenses Depreciation Equipment purchase | Cash balance, beginning of June $8000 $15000 $6000 Using this data above, prepare a cash budget for the month of June. The company requires a minimum cash balance of $4,000 to start a month. Clearly show any borrowing needed during the month in the budget. No interest will be paid for the loan taken (Show all the calculations).
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter22: Master Budget (master)
Section: Chapter Questions
Problem 1R: Ranger Industries has provided the following information at June 30: Other information: Average...
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