1.You have the following income statement for a restaurant for the month of June.

SalesRevenue$235460

Cost ofSales37%ofSales

WagesExpense24%ofSales

OperatingExpenses$17,000

RentExpense$7,500

DepreciationExpense$8,500

OperatingIncome$

Additional Information

2.Actual sales revenue in May was $108,000

3.Actual purchases (cost of sales) in May was $69,000

4.Sales revenue is 25% cash

5.Credit card sales revenue is 75% of total sales, of which 98% is collected in the month of sales, 2% is collected in the following month

6.40% of inventory purchases are paid in the month of purchase, the remaining 60% is paid in the following month

7.Wages and operating expenses included in the income statement are paid in cash in June

8.Cash balance at the end of May was4570

Required:Calculate the actual cash balance at the end of June by preparing a cash budget.

Response Feedback:

COS for June disbursement is wrong, you only pay a portion of that amount. Missing rent disbursement as well.