Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9 Elhs Electronics Company's actual sales and purchases for April and May are shown hero, along with forecasted sales and purchases for June through September

image text in transcribed
image text in transcribed
image text in transcribed
9 Elhs Electronics Company's actual sales and purchases for April and May are shown hero, along with forecasted sales and purchases for June through September 30 points April (actuni) May (actual) June (forecast) July (forecast) August (forecast) September (forecast) Sales $520,000 500,000 475,00 475,00 490,000 530, Purchases $150,000 140,000 140,000 200,000 220, eee 190,00 . Print The company makes 10 percent of its sales for cash and 90 percent on credit of the credit sales. 50 percent are collected in the month after the sale and 50 percent are collected two months after. Elis pays for 20 percent of its purchases in the month after purchase and 80 percent two months after. Labout expense equals 30 percent of the current month's sales Overhead expense equals $14,000 per month. Interest payments of $40,000 aro due in June and September A cash dividend of $60,000 is scheduled to be paid in June. Tax payments of $27,000 aro due in June and September. There is a schoduled capital outlay of $500,000 in September Els Electronics'ending cash balance in May is $30,000. The minimum desired cash balance is $25.000 a. Prepare a schedule of monthly cash receipts for June through September El conte Cash Recepts Schedule May July August Sales Credit ales Cash sales Collection in month after sale Collection second ont after sale Total cash recitats b. Prepare the monthly cash payments for June through September 1 Electron C Pays Schedule M July Al $ Septentier I Purchaus Payents I the other purchase Pacord the Labour Overhead Pe 9 Elhs Electronics Company's actual sales and purchases for April and May are shown hero, along with forecasted sales and purchases for June through September 30 points April (actuni) May (actual) June (forecast) July (forecast) August (forecast) September (forecast) Sales $520,000 500,000 475,00 475,00 490,000 530, Purchases $150,000 140,000 140,000 200,000 220, eee 190,00 . Print The company makes 10 percent of its sales for cash and 90 percent on credit of the credit sales. 50 percent are collected in the month after the sale and 50 percent are collected two months after. Elis pays for 20 percent of its purchases in the month after purchase and 80 percent two months after. Labout expense equals 30 percent of the current month's sales Overhead expense equals $14,000 per month. Interest payments of $40,000 aro due in June and September A cash dividend of $60,000 is scheduled to be paid in June. Tax payments of $27,000 aro due in June and September. There is a schoduled capital outlay of $500,000 in September Els Electronics'ending cash balance in May is $30,000. The minimum desired cash balance is $25.000 a. Prepare a schedule of monthly cash receipts for June through September El conte Cash Recepts Schedule May July August Sales Credit ales Cash sales Collection in month after sale Collection second ont after sale Total cash recitats b. Prepare the monthly cash payments for June through September 1 Electron C Pays Schedule M July Al $ Septentier I Purchaus Payents I the other purchase Pacord the Labour Overhead Pe Total cash receipts 9 b. Prepare the monthly cash payments for June through September EII Electronics Cash Paynents Schedule May $ 30 points June July August April September $ Book Purchases Payments in the month after purchase Payments second month after purchase Labour expense Overhead Interest payments Cash dividend Taxes Capital outlay Print Total cash payments c. Prepare a complete monthly cash budget with borrowing and repayments for June through September. The maximum desired cash balance is $52.000. Excess cash (above $52,000) is used to buy marketable securities, Marketable securities are sold before borrowing funds in case of a cash shortfallfless than $25.000). (Do not leave any empty spaces input a 0 wherever it is required. Negative answers and amounts to be deducted should be indicated by a minus sign.) C Electronics Cash Budget June July August September Cash receipts $ Cach pients Net cash flow Beginning cash balance MID Cumulative cash balance Monthly borrowing or repayment) Cumulative loan balance Marketable Securities purchased Marketable securities sold Cumulative marketable securities Ending cash balance

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions