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INSTRUCTIONS: Prepare a Unisyms Company Cash Budget for March and April. Regarding cash receipts: The company expects to sell about 20% of its merchandise for
INSTRUCTIONS: Prepare a Unisyms Company Cash Budget for March and April. | ||||||||||
Regarding cash receipts: The company expects to sell about 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder in the next month. Sales are: | ||||||||||
January Sales were $490,000 | ||||||||||
February Sales =$500,000 | ||||||||||
March Sales = $450,000 | ||||||||||
April Sales = $520,000 | ||||||||||
Regarding cash payments: | ||||||||||
Manufacturing costs are expected to be $174,500 in March and $305,000 in April and are paid in the month incurred. | ||||||||||
Selling and administrative expenses are expected to be $37,000 in March and $37,500 in April and are paid in the month incurred. | ||||||||||
Income taxes of $40,000 are expected to be paid in April. | ||||||||||
Capital additions of $250,000 are expected to be paid in March. | ||||||||||
Regarding beginning balances: | ||||||||||
Cash on March 1 is $45,000. | ||||||||||
The minimum cash balance is $20,000. | ||||||||||
Unisyms Company | ||||||||||
Cash Budget | ||||||||||
For the Two Months Ending April 30, 2009 | ||||||||||
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