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Prime Products hopes to borrow $ 8 3 , 0 0 0 on April 1 and repay it plus interest of $ 1 , 1
Prime Products hopes to borrow $ on April and repay it plus interest of $ on June The following data are available for the months April through June, during which the loan will be used: On April the start of the loan period, the cash balance will be $ Accounts receivable on April will total $ of which $ will be collected during April and $ will be collected during May. The remainder will be uncollectible. The company estimates of a months sales are collected in the month of sale, in the month following sale, and in the second month following sale. The other are bad debts that are never collected. Budgeted sales and expenses for the threemonth period follow: April May June Sales all on account $ $ $ Merchandise purchases $ $ $ Payroll $ $ $ Lease payments $ $ $ Advertising $ $ $ Equipment purchases $ Depreciation $ $ $ Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $ Required: Calculate the expected cash collections for April, May, and June, and for the three months in total. Prepare a cash budget, by month and in total, for the threemonth period. Assume the $ loan is made on April and repaid with interest on June
Prime Products hopes to borrow $ on April and repay it plus interest of $ on June The following data are available for the months April through June, during which the loan will be used:
On April the start of the loan period, the cash balance will be $ Accounts receivable on April will total $ of which $ will be collected during April and $ will be collected during May. The remainder will be uncollectible.
The company estimates of a months sales are collected in the month of sale, in the month following sale, and in the second month following sale. The other are bad debts that are never collected. Budgeted sales and expenses for the threemonth period follow:
April May June
Sales all on account $ $ $
Merchandise purchases $ $ $
Payroll $ $ $
Lease payments $ $ $
Advertising $ $ $
Equipment purchases $
Depreciation $ $ $
Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases during March, which will be paid in April, total $
Required:
Calculate the expected cash collections for April, May, and June, and for the three months in total.
Prepare a cash budget, by month and in total, for the threemonth period. Assume the $ loan is made on April and repaid with interest on June
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