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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

  1. 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

All purchases are paid in cash

Selling and administrative costs are paid in month of purchase

Prepare a cash budget for January, How is this calculated?

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