Question
Bill Johnson's Company Sales for January, February, and March are expected to be $200,000, $210,000, and $190,000, respectively. All sales are on account and are
Bill Johnson's Company Sales for January, February, and March are expected to be $200,000, $210,000, and $190,000, respectively. All sales are on account and are collected 50% in the month of the sale and 45% in the following month. The remaining 5% is determined to be uncollectible. Raw materials are purchased one month before being needed, and all purchases and expenses are paid for as incurred. The cash balance at February 1 is $8,750. Activities for January, February, and March are expected to be:
January | February | March | |
Sales | $200,000 | $210,000 | $190,000 |
Raw materials used | $40,000 | $36,000 | $44,000 |
Salaries | $80,000 | $85,000 | $75,000 |
Maintenance and repairs | $18,000 | $18,000 | $18,000 |
Depreciation | $36,000 | $36,000 | $36,000 |
Utilities and other | $15,000 | $15,000 | $15,000 |
Dividends paid | $0 | $10,000 | $0 |
Payment on bonds | $8,000 | $8,000 | $8,000 |
Directions: Prepare a cash budget for the month of August 2020.
Do not enter dollar signs or commas in the input boxes. Do not use the negative sign.
Bill Johnson's Company Cash Budget For the month ended February 31, 2020 | ||
Receipts: | ||
Cash collections on July sales | $Answer | |
Cash collections on August sales | $Answer | |
Total Cash Receipts | $Answer | |
Disbursements: | ||
Cash used to purchase raw materials for September | $Answer | |
Cash used to pay salaries | $Answer | |
Cash used to pay for maintenance and repairs | $Answer | |
Cash used to pay for utilities | $Answer | |
Cash used to pay dividends | $Answer | |
Cash used to pay toward bond payable balance | $Answer | |
Total Cash Disbursements | $Answer | |
Beginning cash balance | $Answer | |
Cash inflow | $Answer | |
Cash outflow | $Answer | |
Ending cash balance | $Answer |
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