Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Points: 0 of 1 Cash budget-Basic Grenoble Enterprises had sales of $49,500 in March and $60,500 in April. Forecast sales for May June, and July

image text in transcribed
image text in transcribed
Points: 0 of 1 Cash budget-Basic Grenoble Enterprises had sales of $49,500 in March and $60,500 in April. Forecast sales for May June, and July are $69,500, $80,500, and $100,500, respectively. The firm has a cash balance of $5,500 on May 1 and wishes to maintain a minimum cash balance of $5,500. Given the following data, prepare and interpret a cash budget for the months of May, June, and July (1) The firm makes 24% of sales for cash, 55% are collected in the next month, and the remaining 21% are collected in the second month following sale (2) The firm receives other income of $2,300 per month (3) The firm's actual or expected purchases, all made for cash, are $49.600 $70,500, and $79,600 for the months of May through July, respectively (4) Rent is $3,000 per month. (5) Wages and salaries are 12% of the previous month's sales (6) Cash dividends of $3,300 will be paid in June (7) Payment of principal and interest of $3,800 is due in June. arma Complete the first month of the cash budget for Grenoble Enterprises below. (Round to the nearest dollar. Please input all the values in the table before checking your answers.) March April May 69,500 Sales Cash sales Lag 1 month Lag 2 months Other Income Total cash receipts $ 49,500 $ 11,880 ho 60,500 $ 14,520 $ $ $ Cash budget-Basic Grenoble Enterprises had sales of $49,500 in March and $60,500 in April. Forecast sales for May, June, and July are $69,500, $80,500, and $100,500, respectively. The firm has a cash balance of $5,500 on May 1 and wishes to maintain a minimum cash balance of $5.500. Given the following data, prepare and interpret a cash budget for the months of May, June, and July (1) The firm makes 24% of sales for cash, 55% are collected in the next month, and the remaining 21% are collected in the second month following sale (2) The firm receives other income of $2,300 per month. (3) The firm's actual or expected purchases, all made for cash, are $49.600, $70.500, and $79,600 for the months of May through July, respectively (4) Rent is $3,000 per month (5) Wages and salaries are 12% of the previous month's sales. 4 (6) Cash dividends of $3.300 will be paid in June. (7) Payment of principal and interest of $3,800 is due in June. (8) A cash purchase of equipment costing $5.700 is scheduled in July (9) Taxes of $5,600 are due in June Complete the first month of the cash budget for Grenoble Enterprises below (Round to the nearest dollar. Please input all the values in the table before checking your answers) March April May Sales Cash sales $ 49.500 S 11.000 60 500 5 14 520 5 69 500

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

Contemporary Islamic Finance

Authors: Karen Hunt-Ahmed

1st Edition

1118180909, 978-1118180907

More Books

Students also viewed these Finance questions