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PROBLEM 1: Felix Company wants to forecast its cash budget for the next 3 months. * Estimated sales revenues are: Month Revenue January $ 200,000
| PROBLEM 1: | |||||||
| Felix Company wants to forecast its cash budget for the next 3 months. | |||||||
| * Estimated sales revenues are: | |||||||
| Month | Revenue | ||||||
| January | $ 200,000 | ||||||
| February | $ 150,000 | ||||||
| March | $ 300,000 | ||||||
| April | $ 400,000 | ||||||
| All sales are on credit and are estimated to be paid as follows: | |||||||
| Month of Sale | 60% | ||||||
| Month after sale | 40% | ||||||
| 100% | |||||||
| * Cost of goods sold as a percentage of sales is | 75% | ||||||
| * Payments for merchandise sold are made in the month following the month sale. | |||||||
| * Operating expenses total $50,000 per month and are to be paid in the month they are incurred. | |||||||
| * The cash balance estimated on February 1 is $100,000. | |||||||
| QUESTION: Prepare monthly cash budgets for February, March and April in Excel. | |||||||
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