Question
Budget Preparation Month Sales Forecast ($) April 50,000 May 60,000 June 70,000 Collection Pattern: 70% in the month of sale 20% in the following month
Budget Preparation
Month | Sales Forecast ($) |
April | 50,000 |
May | 60,000 |
June | 70,000 |
Collection Pattern:
- 70% in the month of sale
- 20% in the following month
- 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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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
