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Cooper Company, a retailer of camping supplies has budgeted activity for January using the following data: Cash sales $25,000 Credit sales (60% collected in month
- Cooper Company, a retailer of camping supplies has budgeted activity for January using the following data:
Cash sales | $25,000 |
Credit sales (60% collected in month of sale) | 380,000 |
Selling and administrative costs (including depreciation) | 50,000 |
Depreciation expense | 5,000 |
Merchandise Inventory, January 1 | 21,000 |
Merchandise Inventory, January 31 | 20,000 |
Beginning cash balance | 3,000 |
Minimum cash balance required | 2,500 |
Cost of goods sold is 55% of Coopers selling price |
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All purchases are paid in cash |
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Selling and administrative costs are paid in month of purchase |
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Prepare a cash budget for January, How is this calculated?
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