Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June: All of the sales are on credit. Quagmire collects

image text in transcribed
Quagmire Inc. has prepared the following sales budget for the quarter of April, May and June:
All of the sales are on credit.
Quagmire collects from customers as follows:
40% of sales in the month of sale
25% in the month following the sale, and
35% in the second month following the sale.
Quagmire expects cost of goods sold to be 30% of sales.
They keep 30% of next months expected cost of goods sold in ending inventory. Below are budgeted purchases of inventory.
All purchases are paid for in the SAME month as the purchase.
Below is the budget for variable and fixed selling and administrative expenses.
Selling and admin expenses are paid in the month AFTER they are incurred.
Fixed expenses include depreciation of 32400 each month.
Quagmire has $207000 of cash on hand at he beginning of May.
Prepare a cash budget for May and June. (Use excel so that multiple attempts are easier.)
Compute the beginning balance in cash for June.
Hint: the answer is 336360. If you computed this correctly (it was your ending cash balance for May), you should be able to answer the next question too!
Compute the ending balance in cash for June.
image text in transcribed

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

Survey Of Accounting

Authors: Carl S. Warren, Amanda Farmer

9th Edition

0357132599, 978-0357132593

More Books

Students also viewed these Accounting questions

Question

What has been your desire for leadership in CVS Health?

Answered: 1 week ago

Question

Question 5) Let n = N and Y Answered: 1 week ago

Answered: 1 week ago

Question

4. What is the goal of the others in the network?

Answered: 1 week ago

Question

2. What we can learn from the past

Answered: 1 week ago