Transcribed Image Text: The following information is available to sssist you in preporing a company’s cash budget. a. The cash balance on July 1 is $41,000. b. Actual sales for

Transcribed Image Text: The following information is available to sssist you in preporing a company’s cash budget.
a. The cash balance on July 1 is $41,000.
b. Actual sales for May and June and expected sales for July are as follows:
June
July
Cash sales
Sales on account
May
$ 68,480 $ 87,480 $ 95,8e0
$ 415,eee $ 614,0ee $ 692,0ee
Sales on account are collected over a three-month period os follows: 20% collected in the month of ssle, 60% collected in the month
following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible.
c. Purchases of inventory will total $376,000 for July. Thirty percent of a month’s inventory purchases are paid during the month of
purchase. The accounts payable remaining from June’s inventory purchoses total $174,500, all of which will be paid in July.
d. Selling and administrative expenses are budgeted at $452,000 for July. Of this amount, $63,500 is for deprecistion.
e. A new web server for the Marketing Depertment costing $86,500 will be purchased for cash during July, and dividends toteling
$10,500 will be paid during the month.
£. The company maintsins a minimum cash balance of $20,000. An open line of credit is available from the company’s bank to
increase its cash balance os needed.
Required:
1. Calculate the expected cosh collections for July.
2. Calculate the expected cash disbursements for merchandise purchases for July.
3. Prepore a cash budget for July. Indicate in the financing section any borrowing that will be needed during the month. Assume that
any interest will not be paid until the following month.
Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
Prepare a cash budget for July. Indicate in the financing section any borrowing that will be needed during the month. Assume
that any interest will not be paid until the following month.
Cash Budget
For the Month of July
Beginning cash balance
Add callections from customers
Total cash available
Less cash disbursements:
Payments to suppliers for inventary
Seling and administrative expenses
New web server
Dividends paid
Total cash disbursements
Excess (deficiency) of cash available aver disbursements
Financing:
Barrawings
Repayments
Interest
Total financing
Ending cash balance
< Req 1 and 2 Req 3> Transcribed Image Text: The following information is available to assist you in preparing a company’s cash budget.
a. The cash balance on July 1 is $41,000.
b. Actual sales for May and June and expected sales for July are as follows:
May
$ 68,400 $ 87,400 $ 95,800
$ 415,000 $ 614,000 $ 692,000
June
July
Cash sales
Sales on account
Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month
following sale, and 18% collected In the second month following sale. The remaining 2% is uncollectible.
C. Purchases of inventory will total $376,000 for July. Thirty percent of a month’s Inventory purchases are paid during the month of
purchase. The accounts payable remaining from June’s inventory purchases total $174,500, all of which will be paid in July.
d. Selling and administrative expenses are budgeted at $452,000 for July. Of this amount, $63,500 is for depreciation.
e. A new web server for the Marketing Department costing $86,500 will be purchased for cash during July, and dividends totaling
$10,500 will be paid during the month.
f. The company maintalns a minimum cash balance of $20,000. An open line of credit is avallable from the company’s bank to
Increase its cash balance as needed.
Requlred:
1. Calculate the expected cash collections for July.
2. Calculate the expected cash disbursements for merchandise purchases for July.
3. Prepare a cash budget for July. Indicate in the financing section any borrowing that will be needed during the month. Assume that
any interest will not be paid untii the following month.
Complete this question by entering your answers in the tabs below.
Req 1 and 2
Req 3
1. Calculate the expected cash collections for July.
2. Calculate the expected cash disbursements for merchandise purchases for July.
Total cash collections
Cash disbursements for merchandise purchases
< Req 1 and 2 Req 3 >

Do you need us to help you on this or any other assignment?


Make an Order Now
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.