PLease prepare a cash budget for october, november, december
August September Other bus 70,000 65,000 of total sales. Actual sales for May and June totaled 562.000 and $83. In the past cash and charge sales have been 40 percent and pete, Thirty percent of food costs is paid in the month of sale, while there penent in the second month after the sale. Food costs average 35 perc Collections on change sales average 75 percent in the month follow paid in the following month. Payroll costs are paid at the end of each month 30 percent of total sales. Other budgeted expenses are as follows: There exper July $1,500 1,000 500 400 2,000 Interest-loans Depreciation Property taxes Insurance Other expenses ama August $1.495 1,000 500 400 2,000 ak S120 1.000 500 100 2.000 $4,800 was paid in January. Other expenses are paid each month as the persis payments of $3,000 are made in July and December. The annual incepe The interest is part of Redbird's $2,000 monthly mortgage payment Property During August, a new cash register is to be purchased for $8,000. The date be sold at an expected loss of $500; its net book value at that time will be $1.000.HOME the Redbird Restaurant can borrow money from the Illinois State Bank on a six-more basis--that is, the note and interest would be paid in six months. The cash balance on July 1, 20X2, is $5,000. Required: Prepare the Redbird Restaurant's cash budget for July-September 20X2 using the call receipts and disbursements approach. Problem 20 The financial information for the Soliz Caf is as follows: Budgeted Cash sales Charge sales August $32,000 $16,000 September 26,500 13,000 October 28,000 13,000 November 28,000 12,000 December 30,000 15,000 Collection on charge sales averages 60 percent in the month following the sale, and the remaining 40 percent in the month following that. Purchases (cost of sales ) aveti 35 percent of total revenue. Of that, 100 percent is paid in the month following purchase Payroll is on a cash basis and is forecasted to be: October November December Other budgeted expenses are as follows: Cash Management 581 $15,000 15,500 16,000 December $2,600 Rent Insurance Energy costs Depreciation Loan interest Other expenses October $2,600 200 400 900 400 1,200 November $2,600 200 500 900 400 1,000 200 600 900 400 1400 expense is occurred. The insurance expense is paid in November each year for the entire year ($2,400). The restaurant is making monthly payments of principal toward a bank loan. The amount is $1,000 per month. New equipment is to be purchased in November. The cash cost will be $6,600. At the same time, old equipment will be sold. The estimated gain on the sale is expected to be $800. The old equipment has a net book value of $1,200 and is to be sold for cash. In December the restaurant owner plans to pay a Christmas bonus to his staff in the amount of $5,000. Required: Prepare the restaurant's cash budget for the months of October, November, and December Assume the opening bank balance on October 1 is $3,000. Problem 21 Casade Ziggy, owner of Ziggy's Diner, needs your assistance to prepare a cash budget for his testaurant. He estimates cash on July 1 will be $2,400. He wants to maintain a minimum cash at the end of each month equal to one week's (seven days') disbursements for the Text month, not including disbursements related to working capital loans. (Assume that Sabursements are made evenly throughout a month.) Total monthly sales are as follows: March April May June July (estimated) August (estimated) September (estimated) October (estimated) $ 50,000 120,000 120,000 150,000 159,000 180,000 142,000 90,000 credit sales are collected wisate 40 DO
