Court Enterprises Inc would like to prepare a summary cash budget for March The following information is available The cash balance at March 1 was estimated to be $3,000 March sales, all on account, were estimated to be $50,000 Sales are collected over a two month period with 65 percent collected in the month of sale and the remainder in the subsequent month February sales on account were $60,000 Inventory purchases are expected to be $20,000 in March The company pays for one half of inventory purchases in the month of purchase and the remainder in the subsequent month The accounts payable balance on March 1 is $14,000 Cash disbursements for selling and administrative expenses are expected to be $4,000 in March Depreciation expense for March is expected to be $5,000 Loan and interest payments for March are expected to be $25,000 What is the cash balance at the end of March expected to be Group of answer choices $ 3,500 $26,500 $ 8,500 $(1,500)

Question

Court Enterprises Inc  would like to prepare a summary cash budget for March  The following information is available  The cash balance at March 1 was estimated to be $3,000  March sales, all on account, were estimated to be $50,000  Sales are collected over a two month period with 65 percent collected in the month of sale and the remainder in the subsequent month  February sales on account were $60,000  Inventory purchases are expected to be $20,000 in March  The company pays for one half of inventory purchases in the month of purchase and the remainder in the subsequent month  The accounts payable balance on March 1 is $14,000  Cash disbursements for selling and administrative expenses are expected to be $4,000 in March  Depreciation expense for March is expected to be $5,000  Loan and interest payments for March are expected to be $25,000  What is the cash balance at the end of March expected to be  Group of answer choices $ 3,500 $26,500 $ 8,500 $(1,500)

Accepted Answer

The Answer is in the image, click to view ...

	The cash balance at March 1 was estimated to be $3,000.
	March sales, all on account, were estimated to be $50,000. Sales are collected over a two-month period with 65 percent collected in the month of sale and the remainder in the subsequent month. February sales on account were $60,000.
	Inventory purchases are expected to be $20,000 in March. The company pays for one-half of inventory purchases in the month of purchase and the remainder in the subsequent month. The accounts payable balance on March 1 is $14,000.
	Cash disbursements for selling and administrative expenses are expected to be $4,000 in March.
	Depreciation expense for March is expected to be $5,000.
	Loan and interest payments for March are expected to be $25,000.

Question

Court Enterprises Inc. would like to prepare a summary cash budget for March. The following information is available: The cash balance at March 1 was

Step by Step Solution

Step: 1

Get Instant Access to Expert-Tailored Solutions

Step: 2

Step: 3

Ace Your Homework with AI

Recommended Textbook for

The Internal Audit Handbook The Business Approach To Driving Audit Value

Students also viewed these Accounting questions

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question

Question