Question
Cash Budget Problem: Mia Company Prepare Cash Budget for April, May, June 2018 Follow the following to prepare the budget: 1. Real Sales 2018: January
Cash Budget Problem: Mia Company
Prepare Cash Budget for April, May, June 2018
Follow the following to prepare the budget:
1. Real Sales 2018: January - $100,000
February - $200,000
March - $150,000
Projected for 2018: April - $400,000
May - $300,000
June - $200,000
Sales Payment History: 10% cash
40% Accts. Rec. collected n/30 days
50% Accts. Rec. collected n/60 days
Bad Debt Expense negligible
Other Receipts: Dividend due the firm - $40,000 in June.
2. Purchases: 60% of Sales same month of expected sale.
20% Paid Cash
50% Paid 30 Days
30% Paid 60 Days
Interest Payment: May = $140,000
Rent: $6,000/month
Wages: 15% Sales + $7,000 Fixed Cost
Taxes: $20,000 in April
Sinking Fund: $10,000 due June
Dividend Payments: April = $30,000
Capital Investments: $20,000 in June
Repurchase or Retirement of Stock None Anticipated
3. Cash Balances: @ 3/31 = $60,000; must maintain $45,000 Cash Balance Minimum
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Small Business Terms Financial Education Is Your Best Investment
Authors: Thomas Herold
1st Edition
1798900483, 978-1798900482
