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Prepare a cash budget for July - September based on the above * Practice Acct 1C XYZ plans the following for the upcoming quarter: Month

Prepare a cash budget for July - September based on the above * image text in transcribed
Practice Acct 1C XYZ plans the following for the upcoming quarter: Month Jul Sept Sales 8,000,000.00$9,600,000.00 10,000,000.00 The company projects cash collections a payments as follows: Sales 0.4 40% collected current month, 60% next month 0.6 Cost of Goods Sold AR Variable Cost 35% of sales Fixed $1,500,000 per month incl $200,000 depreciation expense 0.35 Operating Expense Variable Sell and | 16% of sales Admin 0.16 Fixed Selling and Admin expense $400,000 per month incl $50,000 depreciation 0.7 variable costs are paid 70% in month incurredand 30% the following month Fixed costs are paid monthly as they are incurred In August an insurance payment of $60,000 is due 0.3 0.3 Accts Receivable on July 1 and are expected to be collected in July- $3,4000,00 ap Accts Payable on July 1 is $1.900,000 and are expected to be paid in July Cash on hand on July 1 is $950,000 Minimum cash on hand is $900,000 and the company borrows n increments of $100,000 paying 1% interest per-month Fixed Prepare a cash budget for July -Sept based on the above

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