Question
Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2022: AprilMayJuneCredit sales$ 312,000$ 292000$ 352,000Credit purchases120,000143,000168,000Cash disbursements
Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2022:
AprilMayJuneCredit sales$ 312,000$ 292000$ 352,000Credit purchases120,000143,000168,000Cash disbursements Wages, taxes, and expenses432001070062200Interest102001020010200Equipment purchases72000134,0000The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.
In March 2022, credit sales were $182,000 and credit purchases were $122,000. Using this information, complete the following cash budget: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Leave no cells blank - be certain to enter "0" wherever required.)
AprilMay.JuneBeginning cash balance$115,000 Cash receipts Cash collections from credit sales. Total cash available Cash disbursements Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balanceStep by Step Solution
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