Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Its all one question can you please show what the answers are not just the chart Dalton Company has budget sales revenues as follows: JUNE

Its all one question can you please show what the answers are not just the chart
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Dalton Company has budget sales revenues as follows: JUNE Credit Sales: $135,000 Cash Sales: $90,000 JULY Credit Sales: $145,000 Cash Sales: $255,000 AUGUST Credit Sales: $90,000 Cash Sales: $195,000 Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on credit and 50% is paid in the month of purchase and 50% in the month following purchase. Budgeted inventory purchases are: June: $300,000 July: $250,000 August: $105,000 Other budgeted expenses are: 1. Monthly Selling and Administrative Expenses - $50,000 (including $2,000 of depreciation 1. Monthly Selling and Administrative Expenses - $50,000 (including $2,000 of depreciation expense) 2. Dividends of $103,000 will be paid in July 3. purchase of equipment in August for $30,000 cash The company wishes to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 8% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance. The beginning cash balance on July 1 was $50,000. Assume that borrowed money in this case is for one month. 1. How much are the TOTAL cash collections for the month of July? (e.g. $100,000 ) Question 12 0.5 pts How much are the TOTAL cash collections for the month of August? (e.g. $100,000) Question 13 0.5pts How much are the total cash payments for purchases for he month of July? (e.8.$100,000) How much are the total cash payments for purchases for he month of July? (e.g. $100,000) Question 14 How much are the total cash payments for purchases for the month of August? (e.g. $100,000) Question 15 0.5 pts How much are the total cash disbursements for the month of July? (e.g. $100.000 ) Question 16 0.5pts How much are the total cash disbursements for the month of August? (e.g. $100,000 ) How much money must be borrowed for the month of July to maintain the desired $50,000 ending cash balance? (e.g. $100,000 ) Question 18 0.5pts Assuming the loan taken out in July was paid back in August, what is the ending cash balance for August? (e.g. $100,000 ). Hint: Don't forget the interest on the loan

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

Information Security And Auditing In The Digital Age

Authors: Amjad Umar

1st Edition

097274147X, 978-0972741477

More Books

Students also viewed these Accounting questions