D Al Question 3: Cash Budget (19 marks +2 Bonus M 1 Question 3: Cash Budget (19 marks + 2 Bonus Marks!) 2 Cornish Cookie Company prepares monthly cash budgets, Relevant data from operating budgets for 2021 are 3 as follows: 4 Required: S 6 February March April 8 Total Sales 250.000 300.000 225 000 9 10 Cash Sales Credit Sales 11 Breakdown of Sales 1096 90% 12 13 Month of Month after Collection Pattern from customers for credit sales 20% 80% 14 15 16 17 Part at Calculate credit sales (3 marks) 18 February March April 19 Calculate the amount of credit sales for. 20 21 Part b. Prepare a schedule of expected cash collections from customers for March and April (4 marks) Cornish Cookie Company Schedule of Expected Cash Collections 22 For the two months ended April 30 23 March April 3 Final Exam Q1 Q2 Q3 04 05 Exam Formulas + Calculation Mode: Automatic Workbook Statistics 15 16 17. Parta: Calculate credit alemark) February March April 19 Calculate the act of de les for 20 2 Part b. Prepare a schedule of expected and collections from customers for March and April (4 marks) Car Cookie Company Schedule of Expected Cash Collections 22 For the two months ended April 23 March April 24 Cash sales 25 Cash collected from credit sales: 26 February 27 March 28 April 29 Total cash collected 30 31 BONUS MARK: What is the accounts receivable balance as at April 30th? 32 Parte. Prepare a cash budget for March, April and a summary column for the two month period. (12 marks) 23 April 325.000 33 34 March Assume the following cash has been collected from $ 250.000 customers in March and April (do not use your answer Final Exam Q1 02 03 04 05 Exam Formulas + Calculation Mode: Automate Workbook Statistics MacBook Pro Part c. Prepare a cash budget for March, April and a summary column for the two month period. (12 marks) 33 34 March April Assume the following cash has been collected from $ 250.000 $ 325 000 customers im March and April (do not use your answer 35 from Part A). 36 37 Additional information is as follows: 38 39 Cash balance on March 1 $ 42,000 The company took out a loan on January 1st. They have not $ 100.000 40 many any payments on the loan principal to date. 41 42 Description March April 43 Depreciation expense 10,000 10.000 44 Cash payments for expenses 300,000 325.000 45 Equipment purchase (in cash) 50,000 16 Collection of notes receivable 25,000 47 Proceeds from sale of land 125,000 18 19 Minimum cash balance at the end of each month $ 40,000 50 51 Any borrowings and repayments are done in increments of $1,000. Interest can be ignored. 52 Comish Cookie Company Cash Budget 53 For the two months ended April 30 Summer 51 Any borrowings and repayments are done in increments of 31.000. Interest can be ignored. 52 Comic Cookie Company Cash Budget 53 For the two months ended April 30 Summary March ist April 30th March April 54 $ 42.000 55 Cash balance, beg 56 Cash collections: (list alphabetically) S7 Cash collected from customers 250.000 325 000 58 59 60 Total available cash 61 Less: cash payments (tist alphabetically) 62 64 Total cash payments 65 Excess (deficiency) 66 Financing A 61 Less cash payments (list alphabetically) 62 63 CES AN RA 64 Total cash payments 65 Excess (deficiency) 66 Financing 67 Borrowing 68 Repayments (show as negative) 69 Total Financing 70 Cash balance, ending 71 72 73 BONUS MARK: How much of the loan is outstanding at April 30th? 74 END OF QUESTION 3 75
