Budgeting Cash Flow

The following various elements relate to Whitfield, Inc.$\text{'}$s cash budget for April of the current year. For each item, determine the amount of cash that Whitfield should receive or pay in April.

a$.$ At $$33$ each, unit sales are $5,000$ and $6,000$ for March and April, respectively. Total sales are typically $40\%$ for cash and $60\%$ on credit; $30\%$ of credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible.

Marchsales

Aprilcash sales

Aprilcredit sales

Cash collected in April

b$.$ Merchandise purchases were $$50,000$ and $$83,000$ for March and April, respectively. Typically, $20\%$ of total purchases are paid for in the month of purchase with a $5\%$ cash discount. The balance of purchases is paid for $($without discount$)$ in the following month.

Marchpurchases

Aprilpurchases

Cash paid in April

c$.$ Fixed administrative expenses, which total $$16,000$ per month, are paid in the month incurred. Variable administrative expenses amount to $20\%$ of total monthly sales revenue, one$-$half of which is paid in the month incurred, with the balance paid in the following month.

April fixed expenses

March variable expenses

April variable expenses

Cash paid in April

d$.$ A store asset originally costing $$13,000,$ on which $$6,000$ depreciation has been taken, is sold for cash at a loss of $$400.$

$Answer