Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Avery Compeny has prepared the following schedules and edditional information: (Click the icon to viow the cash receipts schedulo.) (Click the icon to vew the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Avery Compeny has prepared the following schedules and edditional information: (Click the icon to viow the cash receipts schedulo.) (Click the icon to vew the cash payments schedulo.) (Click the icon to view the additional information.) Complete a cash budget for Avery Company for January, February and March. (Complete all input fields. Enter a " 0 " for any zero balances. Round all amounts ontaried into the cash budget to the nearest whole dollar. Enter a cash deficiency with a minus sign or parentheses.) \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline & & nuary & & ebruary & March & & Total \\ \hline \multirow[t]{2}{*}{ Total sales } & s & 10,800 & $ & 14,600 & $11,100 & s & 36,500 \\ \hline & \multicolumn{2}{|c|}{ January } & \multicolumn{2}{|c|}{ February } & March & \multicolumn{2}{|r|}{ Total } \\ \hline \multicolumn{8}{|l|}{ Cash Receipts from Customers: } \\ \hline \multicolumn{8}{|l|}{ Accounts Receivable balance, January 1} \\ \hline January-Cash sales & \$ & 8,640 & & & & & \\ \hline January-Credit sales, collection of January sales in January & & 1,080 & & & & & \\ \hline January - Credit sales, collection of January sales in February & & & \$ & 1,080 & & & \\ \hline February-Cash sales & & & & 11.680 & & & \\ \hline February-Credit sales, collection of February sales in February & & & & 1.460 & & & \\ \hline February - Credit sales, collection of February sales in March & & & & & 1,460 & & \\ \hline March-Cash sales & & & & & 8,880 & & \\ \hline March-Credit sales, collection of March sales in March & & & & & 1,110 & & \\ \hline Total cash receipts from customers & s & 9,720 & s & 14,220 & $11,450 & $ & 35,390 \\ \hline \multicolumn{8}{|l|}{ Accounts Receivable balance, March 31: } \\ \hline March-Credit sales, collection of March sales In April & 5 & 1,110 & & & & & \\ \hline \end{tabular} Reference 0s. Round all amounts entered in es. Round all amount More info Avery's beginning cash balance is $7,000 and Avery desires to maintain a minimum ending cash balance of $7,000. Avery borrows cash as needed at the beginning of each month in increments of $1,000 and repays the amounts borrowed in increments of $1,000 at the beginning of months when excess cash is available. The interest rate on amounts borrowed is 13\% per year. Interest is paid at the beginning of the month on the outstanding balance from the previous month

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

Auditing And Assurance Services

Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau

9th Edition

1266796851, 9781266796852

More Books

Students also viewed these Accounting questions

Question

What general conclusions can be drawn from research on experience?

Answered: 1 week ago

Question

Would you recommend this program to your employer? Why?

Answered: 1 week ago