Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

if you can help with 1-9 thank you Cash budget-Basic Grenoble Enterprises had sales of $50,500 in March and $60,300 in April. Forecast sales for

if you can help with 1-9 thank you
image text in transcribed
image text in transcribed
Cash budget-Basic Grenoble Enterprises had sales of $50,500 in March and $60,300 in April. Forecast sales for May, June, and July are $70,300, $79,500, and $100, 300, respectively. The firm has a cash balance of $4,600 on May 1 and wishes to maintain a minimum cash balance of $4,600. Given the following data, prepare and interpret a cash budget for the months of May, June, and July (1) The fimm makes 20% of sales for cash, 61% are collected in the next month, and the remaining 19% are collected in the second month following sale. (2) The firm receives other income of $2,100 per month (3) The firm's actual or expected purchases, all made for cash, are $50,100,S70,500, and $80,500 for the months of May through July, respectively, (4) Rent is $3,200 per month (5) Wages and salaries are 9% of the previous month's sales. (6) Cash dividends of $3,200 will be paid in June (7) Payment of principal and interest of $4,000 is due in June. (8) A cash purchase of equipment costing 56,200 is scheduled in July (9) Taxes of $5,800 are due in June. checking your answers.) May Sales S March 50.500 $ 10.100 April 60,300 $ 12,060 $ 70,300 Cash sales Lag 1 month $ 10.100 12,060 $ Cash sales $ Lag 1 month Lag 2 months $ Other income Total cash receipts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Finance And Investment

Authors: Terrence M. Clauretie, G. Stacy Sirmans

8th Edition

1629809942, 9781629809946

More Books

Students also viewed these Finance questions

Question

What are the different techniques used in decision making?

Answered: 1 week ago