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asap pls and thanks Jamus Produck inc is a rierchandising company that sells binders, paper, and other school supplies. The company is planning its cash
asap pls and thanks
Jamus Produck inc is a rierchandising company that sells binders, paper, and other school supplies. The company is planning its cash needs for the third quarter, In the past, Janus Pioclucts has had to borrow money during the third quarter to support peok sales of back-to-school materiais, which occur during August. The folowing information has been assembled to assist in preparing a cish badget for the quarter: a. Budgeted inonthy absorption costing income statements for July to October are as follows: 7ncludes 52750 depreclation each month. b. Sales ate 205 for cash and sons on ciedit. c. Credit nales ane collected over a three month period, wh 100 collected in the month of sale. 70N in the month following sale, and 202 in the second month followitig saile. May sales totalled \$45,000, and June sales totalled \$51.000. it lriventory parchases are pald for within 15 days. Therefore. 50w of a morth's inventery purchases are paid for in the month of purchase. The remaining 50h, are paid in the following month. Accotints payable for inventory purchases at lane 30 total $19.200 e. The compary maintains its ending inventory levels at 75% of the cost of the merchandise to be fold in the fallowng month. The? iteetchandise inventory at June 30 is $25500 I Land costing $5.250 wit be purchased in July. 9. BWidends of 51.350 will be teclited and paid iri September. 6. The cast balince on june 30s59.500. the company must maintain a cash balance of at leas thes antiont at the end of ench 3. Prepare a Cash budget for July. August, and Septermber and for the quarter in total. (Roundup "Borrowing" ond "Repoyments" onswers to the nearest whole dollar omount. Any "Repayments" and "Interest" should be indicoted by a minus sign. Leave ro cells blank - be certain to enter " 0 " wherever required.) Step by Step Solution
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