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Great Gifts, an importer, has provided you with the following information: All sales are on credit. The company collects 80% in the month following the sale and 20% two months following the sale. All purchases of stock are paid for one month after the purchase. The selling and distribution expenses are $32 000 each month. Administrative expenses are $18 000 per month. This includes $2 000 of depreciation expense. Selling Expenses and Administrative Expenses are paid in the month they are incurred. Equipment costing $75,000 is expected to be acquired and paid for in October. The cash balance on 1 October 2022 is $7 000. Ignore GST. The following sales and purchases data in 2022 have been compiled for the preparation of the budget: Purchases Sales July 150 000 400 000 August 180 000 430 000 REQUIRED: Prepare a cash budget for the month of October 2022. September 170 000 420 000 October 200 000 440 000 Great Gifts, an importer, has provided you with the following information: All sales are on credit. The company collects 80% in the month following the sale and 20% two months following the sale. All purchases of stock are paid for one month after the purchase. The selling and distribution expenses are $32 000 each month. Administrative expenses are $18 000 per month. This includes $2 000 of depreciation expense. Selling Expenses and Administrative Expenses are paid in the month they are incurred. Equipment costing $75,000 is expected to be acquired and paid for in October. The cash balance on 1 October 2022 is $7 000. Ignore GST. The following sales and purchases data in 2022 have been compiled for the preparation of the budget: Purchases Sales July 150 000 400 000 August 180 000 430 000 REQUIRED: Prepare a cash budget for the month of October 2022. September 170 000 420 000 October 200 000 440 000
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Answer rating: 100% (QA)
To prepare the cash budget for the month of October 2022 we need to take into account the cash inflo... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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