Question
Budget Preparation Month Sales Forecast ($) April 50,000 May 60,000 June 70,000 Collection Pattern: 70% in the month of sale 20% in the following month
Month | Sales Forecast ($) |
April | 50,000 |
May | 60,000 |
June | 70,000 |
Collection Pattern:
- 70% in the month of sale
- 20% in the following month
- 10% uncollectible
Additional Information:
- Beginning cash balance: $5,000
- Monthly expenses: $15,000
- Purchase of equipment in May: $10,000
Tasks:
- Prepare the cash receipts schedule.
- Prepare the cash payments schedule.
- Prepare the cash budget for the quarter.
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
