Answered step by step
Verified Expert Solution
Question
1 Approved Answer
a) what is the budgeted cash receipts for the month of october? b) what is the budgeted cash disbursements for inventory purchases for the month
a) what is the budgeted cash receipts for the month of october? b) what is the budgeted cash disbursements for inventory purchases for the month of august? c) what is the budgeted cash disbursements for other expenses for the month of august? d) what is the ending cash balance in the cash budget for the month of august? Gift4U provided the following sales information for the month of August: July Actual August Budget Cash sales $ 23,400.00 $ 21,600.00 Credit sales 132,600.00 158,400.00 Total sales $156,000.00 $180,000.00 For credit sales, the collection pattern is as follows: Month of sales 60% Month following sales 35% Based on past experience, the company estimates the remaining credit sales a uncollectible. Inventory purchases average 55% of current month's total sales. Payments for inventory are made at follows: Month of purchase 30% Month following purchase 70% Other expenses are as follows: Salaries and wages per month $ 11,484.00 Rent per month $ 3,960.00 Utilities per month $ 5,720.00 Insurance per quarter to be paid in August $ 990.00 Depreciation expenses per month $ 1,650.00 August 1 cash balance is $6,912.00. Prepare a cash budget for the month of August
a) what is the budgeted cash receipts for the month of october?
b) what is the budgeted cash disbursements for inventory purchases for the month of august?
c) what is the budgeted cash disbursements for other expenses for the month of august?
d) what is the ending cash balance in the cash budget for the month of august?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started