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please help me solve this to understand it Below is the Batance Sheet for Creasy. Inci as of June 30. Use the information from the
please help me solve this to understand it
Below is the Batance Sheet for Creasy. Inci as of June 30. Use the information from the problems above to comtete the Budigeted Bahance Sheet as of September 30, Creasy estimates Income Tax at a rate of 22% of net income before taxes. Use this information plus the information from the previous questions to create the Budgeted Income Statement. Do not use the dollar sign. Groasy oxpects 10% of sales to be collected in cash from the customer immediately and 9006 on credit. Credit sales are alkays. Paid in full in the following month, At direct materials purchates are on credit and are paid in fullin the followint month. No other payables arise from any other transactions: As-of zune 30, the Accounts Recelvabie balance is $720000. The Accounts Payable batance is $308,700. The minirium encing cash balance for all months is $100,000. If necessary, the compary borrows enough cash using a short term note to tesch the minimum. Shoit term notes recuire on interest payment of 0.5% each month end foefore repaymentl. If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short term notes payable batance. Thes company expects to dectare and pay a dividend of $80,000 in duly The company does not expect to make any payments for income Taxes in the butgeted quarter. Equipment purchases of $25.000 are scheduled for Seotember. No divposals of fued assets are anticiputed Using this information plus the information you prepared in the previous questions, prepare the Cash Budget. Below is the Batance Sheet for Creasy. Inci as of June 30. Use the information from the problems above to comtete the Budigeted Bahance Sheet as of September 30, Creasy estimates Income Tax at a rate of 22% of net income before taxes. Use this information plus the information from the previous questions to create the Budgeted Income Statement. Do not use the dollar sign. Groasy oxpects 10% of sales to be collected in cash from the customer immediately and 9006 on credit. Credit sales are alkays. Paid in full in the following month, At direct materials purchates are on credit and are paid in fullin the followint month. No other payables arise from any other transactions: As-of zune 30, the Accounts Recelvabie balance is $720000. The Accounts Payable batance is $308,700. The minirium encing cash balance for all months is $100,000. If necessary, the compary borrows enough cash using a short term note to tesch the minimum. Shoit term notes recuire on interest payment of 0.5% each month end foefore repaymentl. If the ending cash balance exceeds the minimum, the excess will be applied to repaying the short term notes payable batance. Thes company expects to dectare and pay a dividend of $80,000 in duly The company does not expect to make any payments for income Taxes in the butgeted quarter. Equipment purchases of $25.000 are scheduled for Seotember. No divposals of fued assets are anticiputed Using this information plus the information you prepared in the previous questions, prepare the Cash Budget Step by Step Solution
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