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Cash Budget Sales for Blue Bill Corporation are projected as follows for the months of June through November: June $200,000 July 200,000 August 200,000 September
Cash Budget | ||||||
Sales for Blue Bill Corporation are projected as follows for the months of June through November: | ||||||
June | $200,000 | |||||
July | 200,000 | |||||
August | 200,000 | |||||
September | 300,000 | |||||
October | 500,000 | |||||
November | 200,000 | |||||
Credit sales account for 70% of the monthy sales and are collected one month after the sale. | ||||||
Other receipts for October are $50,000. | ||||||
Variable disbursements are 60% of sales each month. | ||||||
Fixed disbursements are $10,000 each month. | ||||||
$80,000 should be included in August for taxes. | ||||||
The company is obligated to make a $400,000 debt repayment in November. | ||||||
Beginning cash in June is $50,000. | ||||||
Desired ending cash each month is $10,000. | ||||||
Complete the monthly cash budget for Blue Bill Corporation for June through November. | ||||||
Blue Bill Corporation | ||||||
Cash Budget | ||||||
June | July | August | September | October | November | |
Sales | $200,000 | $200,000 | $200,000 | $300,000 | $500,000 | $200,000 |
Cash sales | ||||||
Collections | ||||||
Other Receipts | 50,000 | |||||
Total cash receipts | ||||||
Variable disbursements | ||||||
Fixed disbursements | ||||||
Other disbursements | ||||||
Total cash disbursements | ||||||
Net change during the month | ||||||
Beginning cash | 50,000 | |||||
Ending cash | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 |
Required cash | ||||||
Excess cash to invest | ||||||
Cash borrowed |
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