Question
Sales for October, November, and December are expected to be $200,000, $180,000, and $220,000, respectively, for the Gurumai Company. All sales are on account (terms
Sales for October, November, and December are expected to be $200,000, $180,000, and $220,000,
respectively, for the Gurumai Company. All sales are on account (terms 2/15, net 30 days) and are
collected 50 percent in the month of sale and 50 percent in the following month. One-half of all sales
discounts are taken on the average. Materials are purchased one month before being needed, and all
purchases and expenses are paid for as incurred. Activities for the quarter are expected to be:
October November December
Materials used $40,000 $36,000 $44,000
Salaries 70,000 68,000 72,000
Maintenance and repairs 18,000 18,000 18,000
Depreciation 36,000 36,000 36,000
Utilities and other 14,000 14,000 14,000
Dividends paid -0- 10,000 -0-
Payment on bonds 8,000 8,000 8,000
Required:
Using the given information, prepare a cash budget for November.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started