Question
For the drop-down menus for Question C, the options are: Beginning Cash Balance, Cash Available, Rent, Salaries, Utilities Cash Available, Cash Collection, Rent, Salaries, Utilities
For the drop-down menus for Question C, the options are:
Beginning Cash Balance, Cash Available, Rent, Salaries, Utilities
Cash Available, Cash Collection, Rent, Salaries, Utilities
Cash Available, Cash Collection, Rent, Salaries, Utilities
Beginning Cash Balance, Cash Available, Cash Collection, Rent Materials
Beginning Cash Balance, Cash Available, Cash Collection, Salaries
Beginning Cash Balance, Cash Available, Cash Collection, Utilities
Beginning Cash Balance, Cash Available, Cash Collection, Rent
Beginning Cash Balance, Cash Available, Cash Collection, Insurance
Advertising, Beginning Cash Balance, Cash Available, Cash Collection
Allan Corporation has a sales budget for March of $440,000. About 10 percent are cash sales, and the remainder is sold on account. The company expects that 60 percent of credit sales will be collected in the month of the sale, 25 percent in the next month, and 10 percent in the following month. Materials purchased on account in March are expected to be $250,000. Allan pays 35 percent in the month of the purchase, 50 percent in the month following the purchase, and the remaining 15 percent in the second month after the purchase. Salaries and wages of the workers are approximately $45,000 per month. The employees are paid weekly, so on average 95 percent of their wages are paid in the month to which they relate and the remaining 5 percent is paid in the following month. Utilities average $4,300 per month. Rent on the building is $9,000 per month. Insurance is $3,000 per month, and advertising costs are $1,000 per month. February sales were $320,000, and purchases of materials in February were $170,000; January sales were $200,000, and purchases of materials in January were $130,000. The cash balance on March 1 is $5,400. Required: A. Prepare a schedule of cash receipts. Allan Corporation Schedule of Cash Receipts B. Prepare a schedule of cash payments (Accounts payable payments). Allan Corporation Schedule of Cash Payments C. Prepare a cash budget. Allan Corporation Cash BudgetStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started