Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Create a cash budget for March using the assumptions below. Round your calculations to whole numbers (no decimal places). - Collections: 60% cash sales, 38%

image text in transcribed
Create a cash budget for March using the assumptions below. Round your calculations to whole numbers (no decimal places). - Collections: 60% cash sales, 38% of sales collected 1 month later, and 2% are written off as bad debt. - Inventory purchases: 55% of next month's sales; 70% paid at the time of purchase and 30% paid one month after purchase. - Wages: $16,500/ month - Sales Commissions: 15% of collectible sales paid 1 month after the revenue is earned - Rent: $3,000/ month - Lease for Office Equipment: $800/ month - Utilities: $400/ month - February ending (and unadjusted) cash=$15,000 - Minimum cash balance =$5,000 Sales for February through April: February $48,000 March $32,000 April $30,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Focus On Personal Finance

Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes

2nd Edition

0073530638, 9780073530635

More Books

Students also viewed these Finance questions