Question

Cash Budget Problem: Mia Company Prepare Cash Budget for April, May, June 2018 Follow the following...

Cash Budget Problem: Mia Company

Prepare Cash Budget for April, May, June 2018

Follow the following to prepare the budget:

1.         Real Sales 2018:         January                        - $100,000

                                                February                      - $200,000

                                                March                          - $150,000

            Projected for 2018:     April                            - $400,000

                                                May                             - $300,000

                                                June                             - $200,000

            Sales Payment History:           10% cash

                                                            40% Accts. Rec. – collected n/30 days

                                                            50% Accts. Rec. – collected n/60 days

                                                            Bad Debt Expense – negligible

            Other Receipts: Dividend due the firm - $40,000 in June.

2.         Purchases:       60% of Sales – same month of expected sale.

                                    20% Paid Cash

                                    50% Paid 30 Days

                                    30% Paid 60 Days

            Interest Payment:   May = $140,000

            Rent:   $6,000/month

            Wages:   15% Sales + $7,000 Fixed Cost

            Taxes:   $20,000 in April

            Sinking Fund: $10,000 due June

Dividend Payments:   April = $30,000

Capital Investments:   $20,000 in June

            Repurchase or Retirement of Stock – None Anticipated

           

3.         Cash Balances:   @ 3/31 = $60,000; must maintain $45,000 Cash Balance Minimum

Homework Answers

Answer #1
April May June
Opening Cash 60000 45,000 45,000
Sales Receipt ( January)
Sales Receipt ( February) 100000
Sales Receipt ( March ) 60000 75000
Sales Receipt ( April ) 40000 160000 200000
Sales Receipt ( May ) 30000 120000
Sales Receipt ( June ) 20000
Dividend Income 40000
Purchase Payment ( January)
Purchase Payment ( February) -36000
Purchase Payment ( March ) -45000 -27000
Purchase Payment ( April ) -48000 -120000 -72000
Purchase Payment ( May ) -36000 -90000
Purchase Payment ( June ) -24000
Interest Payment -140000
Rent -6000 -6000 -6000
Wages -67000 -52000 -37000
Taxes -20000
Sinking Fund -10000
Dividend Payments -30000
Capital Investments -20000
Cash Budgeting Required 37000 116000 -121000
Ending Cash 45000 45,000 45,000

Please contact in case you need any clarifications. Thanks.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June:...
Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June: Sales Budget April May June Total Sales in units 12600 16800 14400 43800 Selling price per unit x $60 x $60 x $60 Sales revenue $756000 $1008000 $864000 $2628000 All of the sales are on credit. Quagmire collects from customers as follows: 45% of sales in the month of sale 25% in the month following the sale, and 30% in the second month following...
Cash Budget The owner of a building supply company has requested a cash budget for June....
Cash Budget The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following: Cash balance on June 1 is $1,186. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 Credit sales 28,900 35,000 Total sales $38,900 $53,000 Credit sales are collected over a 3-month period: 40% in the month of sale, 30% in the second month, and 20% in the...
CAT Co. had forecasted sales as follows: -April: $406,000 -May: $452,000 -June: $496,000 Sales are 30%...
CAT Co. had forecasted sales as follows: -April: $406,000 -May: $452,000 -June: $496,000 Sales are 30% credit and 70% cash. 50% of the credit sales are collected in the month of the sale, 30% in the month following the sale, and 20% in the following month. Total sales for the months of February and March were $950,000 with February having $500,000 credit sales and March $400,000. Prepare a sales budget schedule and a cash collections budget schedule for the months...
Boston Company developed the following budgeted data for the month of June: a. The June 1st...
Boston Company developed the following budgeted data for the month of June: a. The June 1st cash balance is $34,700. b. Cash sales in June are $75,000. c. Credit sales for June are expected to be $40,000. Credit sales for May were $60,000 and for April were $50,000. 70% of credit sales are collected in the month of sale, 20% are collected in the month following the sale, and the remaining 10% are collected in the second month following the...
Use the following information to prepare a cash budget for Knightsbridge Corporation for the month of...
Use the following information to prepare a cash budget for Knightsbridge Corporation for the month of June 2020. In May, credit sales were $175,000; 80% of this amount is estimated to be collectible in June. June sales are estimated to be $340,000, all of which are credit sales. Only 20% of credit sales are collected in the month in which the sale is made. Total fixed expenses are $60,000 per month, including $26,000 depreciation. Variable expenses are 35% of sales....
Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June:...
Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June: Sales Budget April May June Total Sales in units 15600 19800 17400 52800 Selling price per unit x $30 x $30 x $30 Sales revenue $468000 $594000 $522000 $1584000 All of the sales are on credit. Quagmire collects from customers as follows: 40% of sales in the month of sale 25% in the month following the sale, and 35% in the second month following...
To prepare a master budget for April, May, and June of 2019, management gathers the following...
To prepare a master budget for April, May, and June of 2019, management gathers the following information. ZIGBY MANUFACTURING Estimated Balance Sheet March 31, 2019 Assets Cash $ 54,000 Accounts receivable 354,375 Raw materials inventory 100,495 Finished goods inventory 333,000 Total current assets 841,870 Equipment 628,000 Accumulated depreciation (164,000 ) Equipment, net 464,000 Total assets $ 1,305,870 Liabilities and Equity Accounts payable $ 212,195 Short-term notes payable 26,000 Total current liabilities 238,195 Long-term note payable 514,000 Total liabilities 752,195 Common...
Al-Bazar industries are developing a cash budget for April May and June. Al-Bazar's cash receipts in...
Al-Bazar industries are developing a cash budget for April May and June. Al-Bazar's cash receipts in February and March were $20,000 and $90,000 respectively. Total Cash receipts of $210,000, $320,000, and $340,000 have been forecast for April May and June. On the other hand, the total cash disbursements in April, May, and June were $213,000, $418,000 and $305,000. Al-Bazar Industries has a cash balance of $50,000 at the end of March and wishes to maintain, as a reserve for unexpected...
The owner of a building supply company has requested a cash budget for June. After examining...
The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following: Cash balance on June 1 is $736. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 Credit sales 28,900 35,000 Total sales $38,900 $53,000 Credit sales are collected over a 3-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month....
The owner of a building supply company has requested a cash budget for June. After examining...
The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following: Cash balance on June 1 is $1,236. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 Credit sales 28,900 35,000 Total sales $38,900 $53,000 Credit sales are collected over a 3-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT