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I would appreciate if you couod please explain your steps and/or formulas used to get to the answers--thank you! The following information is from Tejas
I would appreciate if you couod please explain your steps and/or formulas used to get to the answers--thank you! The following information is from Tejas Window Tint's financial records. Exercise 9-26 Cash Budgeting (LO 9-3, 9-5) Month Purchases April May June July Sales $72,000 66,000 60,000 78,000 $42,000 48.000 36,000 54,000 Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 2 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $60,000, and sales for August are forecasted at $66,000. Cash disbursements for expenses are expected to be $14,400 for the month of August. The company's cash balance on August I was $22,000. 26 Chapter 9 Financial Planning and Analysis: The Master Budget Required: Prepare the following schedules. 1. Expected cash collections during August. 2. Expected cash disbursements during August 3. Expected cash balance on August 31
I would appreciate if you couod please explain your steps and/or formulas used to get to the answers--thank you!
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