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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
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
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