Refer to P22-28B. You have gathered the following information to complete the cash budget for Omaha Office Supply:

Budgeted cash collections information: Sales are 70\% cash and 30\% credit. (Use the rounded sales on the last two lines of P22-28B, Req. 2.) Credit sales are collected in the month after sale.

Budgeted cash payments for purchases information: Inventory purchases are paid \(50 \%\) in the month of purchase and \(50 \%\) the following month.

Cash payments for operating expenses information: Salaries and sales commissions are paid half in the month earned and half the next month.

The April 30, 2008, balance sheet showed the following balances:

Requirements 

1. Prepare schedules of budgeted cash collections from customers and budgeted cash payments for purchases . Show amounts for each month and totals for May and June. Round your computations to the nearest dollar.

2. Prepare a cash budget similar to Exhibit 22-13.

Transcribed Image Text:

Cash $15,000 Accounts payable 7,400 Salary and commissions payable 2.850