Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Golden Sun Company had sales of Tk.95,000 and Tk. 115,000 in November and December respectively. It expects sales of Tk.85,000 in January. Sales levels should
Golden Sun Company had sales of Tk.95,000 and Tk. 115,000 in November and December respectively. It expects sales of Tk.85,000 in January. Sales levels should increase by 15 percent per month over the next two months. Cash sales will be 50 percent of total sales All credit sales for any month will be collected in the following month. Other cash income is expected to be 5 percent of monthly sales, Wages and salaries will be constant at Tk.50,000. Rent, utilities, and operating expenses are constant at Tk 7,500, Tk.6,500, and Tk. 10,500 per month, respectively. Supplies purchased will be 50 percent of monthly sales and shall be paid two months following purchases. The firm has Tk. 12,000 in its bank account. The target cash balance per month is Tk. 15,000. Prepare a three-month cash budget for Golden Sun (January through March)
Step 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