Question
please help me in this question. 1)Khaled Industries, a defense contractor, is developing a cash budget for October, November, and December. Khaled's sales in August
please help me in this question.
1)Khaled Industries, a defense contractor, is developing a cash budget for October, November, and December.
Khaled's sales in August and September were $100,000 and $200,000 respectively. Forecasted Sales for October, November, and December are as below: October - $400,000 November - $300,000 December - $200,000.
30% of the firm's sales have been for cash, 50% have been collected after 1 month, and the remaining 20% after 2 months. Bad-debt expenses (uncollectible accounts) have been negligible. In December, Khaled will receive a $30,000 dividend from stock in a subsidiary.
Khaled has also gathered the relevant information for the development of a cash disbursement schedule.Purchases will represent 70% of sales - 40% will be paid immediately in cash, 60% is paid the month following the purchase.The firm will also expend cash on rent, wages and salaries every month of $52,000.
Prepare Cash Budget for October, November and December.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started