All one question, all information given is within the screenshots.
CASH BUDGETING Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2016 and 2017 May 2016 June July August $186,000 186,000 372,000 540,000 720,000 360,000 360,000 90,000 anuary 2017 180,000 October Estimates regarding pay ents obtained from the cred department are as follo s collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15% Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials $90,000 90,000 126,000 881,000 307,000 234,000 162,000 90,000 May 2016 June July August October General and administrative salaries are approximately $26,000 a month. Lease payments under long-term eases are $9,000 a month. Depreaation charges are s36,000 a month. Miscellaneous expenses are2,600 a month income tax payments of $64,000 are due in September and December. A progress payment of S 180,000 on a new design studio must be paid in October Cash on hand on July 1 will be $132,000, and minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2016. If no entry required, enter "O". Use minus sign to enter losses, loans outstanding or any other negative amounts Mey une July August September October November December January Colections and purchases worksheet Sales (gross) During month of sale During 1st month after During 2nd month after sale Total collections CASH BUDGETING Helen Bowers, owner of Helen's Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2016 and 2017 May 2016 June July August $186,000 186,000 372,000 540,000 720,000 360,000 360,000 90,000 anuary 2017 180,000 October Estimates regarding pay ents obtained from the cred department are as follo s collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15% Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials $90,000 90,000 126,000 881,000 307,000 234,000 162,000 90,000 May 2016 June July August October General and administrative salaries are approximately $26,000 a month. Lease payments under long-term eases are $9,000 a month. Depreaation charges are s36,000 a month. Miscellaneous expenses are2,600 a month income tax payments of $64,000 are due in September and December. A progress payment of S 180,000 on a new design studio must be paid in October Cash on hand on July 1 will be $132,000, and minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2016. If no entry required, enter "O". Use minus sign to enter losses, loans outstanding or any other negative amounts Mey une July August September October November December January Colections and purchases worksheet Sales (gross) During month of sale During 1st month after During 2nd month after sale Total collections
