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Scan Design provided the following budget information for April through July: April May June July Projected Sales $104,000 $123,000 $115,000 $132,000 Projected Merchandise Purchases $82,000
Scan Design provided the following budget information for April through July:
April May June July
Projected Sales $104,000 $123,000 $115,000 $132,000
Projected Merchandise Purchases $82,000 $92,000 $78,000 $66,000
Cash balance as of June 1 is $12,000. The company pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted at $31,000 per month, of which depreciation is $3,000 of this amount. Management pays operating expenses in the month in which they are incurred. The company makes loan payments of $4,000 per month, of which $600 is interest and the rest is principal.
April May June July
Projected Sales $104,000 $123,000 $115,000 $132,000
Projected Merchandise Purchases $82,000 $92,000 $78,000 $66,000
Cash balance as of June 1 is $12,000. The company pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted at $31,000 per month, of which depreciation is $3,000 of this amount. Management pays operating expenses in the month in which they are incurred. The company makes loan payments of $4,000 per month, of which $600 is interest and the rest is principal.
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