Cash Budgeting Problem:

Parker's Landscaping has projected sales as follows:

September: $10,000

October: $20,000

November: $20,000

December: $40,000

Experience shows that 40% of Sales are for Cash with 60% of Sales on credit.

50% of current month credit sales are collected in the month following the sale and the balance(50% of the credit sale) is collected 2 months after the sale.

Cash disbursements projected for November=$15,000 and

$25,000 for December. The Cash balance at the beginning of November = $25,000

Prepare a Cash Budget for November and December.

(Prepare a Cash Receipts Schedule first)

1: Prepare a Cash Receipts Schedule-Schedule the months of Sept, Oct, Nov, and December

2: Prepare Cash Budget for November and December showing the ending Cash balance. Remember, Beginning Cash for Nov 1 is $15,000