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Application/theory (excel problem) Problem - Cash Budget The following information pertains to Amigo Corporation: Month Sales...

Application/theory (excel problem)
Problem - Cash Budget
The following information pertains to Amigo Corporation:
Month Sales Purchases
July $60,000 $20,000
August 68,000 24,000
September 76,000 28,000
October 84,000 32,000
November 96,000 36,000
December 120,000 40,000
• Cash is collected from customers in the following manner:
Month of sale 40%
Month following sale 50%
Two months following sale 10%
• 50% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
Required:
a. Prepare a summary of cash collections and disbursements for the 4th quarter.
b. Prepare a cash budget, when the company requires the balance in Cash account
minimum $25,000 .
Business   Accounting   
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