Question

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2018:

April May June
  Credit sales $ 314,000 $ 294,000 $ 354,000
  Credit purchases 122,000 145,000 170,000
  Cash disbursements
    Wages, taxes, and expenses 43,400 10,900 62,400
    Interest 10,400 10,400 10,400
    Equipment purchases 74,000 138,000 0

The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2018, credit sales were $184,000 and credit purchases were $124,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

Homework Answers

Answer #1
Cash budget
March April May June
Credit Sales 184000 314000 294000 354000
Credit purchases 124000 122000 145000 17000
Receipts
40% of current month sales 125600 117600 141600
55% of previous month sales 101200 172700 161700
Payments
credit purchase of previous month -124000 -122000 -145000
Wages, taxes and expenses -43400 -10900 -62400
Interest -10400 -10400 -10400
Equipment purchases -74000 -138000 0
Net cash required or Available -25000 9000 85500
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