Question
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(PRO-FORMA) | ||||||
| June | July | August | September | October | November | |
| Sales | ||||||
| Cash sales | ||||||
| Collections | ||||||
| Other Receipts | ||||||
| Total cash receipts | ||||||
| Variable disbursements | ||||||
| Fixed disbursements | ||||||
| Other disbursements | ||||||
| Total cash disbursements | ||||||
| Net change during the month | ||||||
| Beginning cash | ||||||
| Ending cash | ||||||
| Required cash | ||||||
| Excess cash to invest | ||||||
| Cash borrowed | ||||||
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Performance Auditing A Measurement Approach
Authors: Ronell B. Raaum CGAP CGFM, Stephen L. Morgan CIA CGAP CFE CGFM
2nd Edition
0894136607, 9780894136603
