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I dont know how do this question type ABC Company provided the following information for the month of October: Cash sales Credit sales Total sales
I dont know how do this question type
ABC Company provided the following information for the month of October: Cash sales Credit sales Total sales September Actual $ 19,500 110,500 $ 130,000 October Budget $ 18,000 102,000 $120,000 Based on past experience, the company estimates that uncollectible credit sales Of the credit sales that are collectible, the collection pattern is as follows: Month of sales 70% Second month following sales 26% October inventory purchase September inventory purchase $ $ 83,000 98,000 Payments for inventory are made as follows: Month of purchase Month following purchase 25% 75% Salaries and wages Rent per month Utilities per month Amortization per month Insurance per quarter to be paid in October $ $ $ $ $ 10,440 3,600 5,200 500 900 October 1 cash balance $ 7,680 al Required: Compute budgeted cash receipts for October (3 Marks b) (2 Marks Compute budgeted cash disbursements for purchases for October. c) Compute the cash disbursements for Administrative (2 Marks expenses. d) Compute the ending cash balance in the cash budget for the month of October. 12 MarksStep by Step Solution
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