Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cash Budget Information COGS Purchases 60% paid in month 40% paid next month Sales 90% cash, 10% on account and collected the next month Fixed

image text in transcribed
image text in transcribed
Cash Budget Information COGS Purchases 60% paid in month 40% paid next month Sales 90% cash, 10% on account and collected the next month Fixed Asset Purchases a. Service truck = $20,000 (Purchased in January) b. Laptop Computer = $1,000 (Purchased in January) c. LaserJet Printer = $500 (Purchased in October) d. 3 Mechanic Tool Sets = $500 each (1 in January, 1 in March, 1 in April) - . Owner invested $20,000 in the company on the first day. Beginning Cash Balance = 0 Minimum Cash Balance = $1,000 Interest = 1% per month on the balance. Prepare a 12 month Cash budget based on this data. Cash Budget Information COGS Purchases 60% paid in month 40% paid next month Sales 90% cash, 10% on account and collected the next month Fixed Asset Purchases a. Service truck = $20,000 (Purchased in January) b. Laptop Computer = $1,000 (Purchased in January) c. LaserJet Printer = $500 (Purchased in October) d. 3 Mechanic Tool Sets = $500 each (1 in January, 1 in March, 1 in April) . Owner invested $20,000 in the company on the first day. Beginning Cash Balance = 0 Minimum Cash Balance = $1,000 Interest = 1% per month on the balance. Cash Budget Information COGS Purchases 60% paid in month 40% paid next month Sales 90% cash, 10% on account and collected the next month Fixed Asset Purchases a. Service truck = $20,000 (Purchased in January) b. Laptop Computer = $1,000 (Purchased in January) c. LaserJet Printer = $500 (Purchased in October) d. 3 Mechanic Tool Sets = $500 each (1 in January, 1 in March, 1 in April) - . Owner invested $20,000 in the company on the first day. Beginning Cash Balance = 0 Minimum Cash Balance = $1,000 Interest = 1% per month on the balance. Prepare a 12 month Cash budget based on this data. Cash Budget Information COGS Purchases 60% paid in month 40% paid next month Sales 90% cash, 10% on account and collected the next month Fixed Asset Purchases a. Service truck = $20,000 (Purchased in January) b. Laptop Computer = $1,000 (Purchased in January) c. LaserJet Printer = $500 (Purchased in October) d. 3 Mechanic Tool Sets = $500 each (1 in January, 1 in March, 1 in April) . Owner invested $20,000 in the company on the first day. Beginning Cash Balance = 0 Minimum Cash Balance = $1,000 Interest = 1% per month on the balance

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_2

Step: 3

blur-text-image_3

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

Glencoe Accounting Concepts Procedures Applicatons

Authors: McGraw-Hill Education

3rd Edition

0028036174, 978-0028036175

More Books

Students also viewed these Accounting questions