Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepre a cash budget the Johnson Company. for the month of April based on the following information: -Estimated cash balance at the end of March

Prepre a cash budget the Johnson Company. for the month of April based on the following information:

-Estimated cash balance at the end of March was $ 200,000

-Aprils depreciation will be $50,000

-Taxes which will be paid in June are $175,000

-Aprils payroll will be $90,000

-April had insurance expense for the month of $40,000 and insurance costs for the entire year were prepaid in January.

-Aprils operating expense are $75,000

-Collections of sales are as follows: 50% in the month of the sale, 30% in the following month, and 20% in the next month.

-Receivables balance as of the end of March is as follows $400,000 ( $300,000 relating to March, $100,000 relating to February ).

-Sales for the month of April are forecasted to be $900,000

-Merchandise purchases are paid as follows: 50% in the month of the purchase, 25% in the next month, and 25% one month later.

-Purchases for March and February were $300,000 and $250,000 respectively and Aprils purchases are $200,000.

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

Audit And Assurance Study Text

Authors: Get Through Guides

1st Edition

1848080255, 978-1848080256

More Books

Students also viewed these Accounting questions

Question

Identify the different methods employed in the selection process.

Answered: 1 week ago

Question

Demonstrate the difference between ability and personality tests.

Answered: 1 week ago