Silver Titan's company has projected sales for the first seven months of 2021 are given below:...

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Silver Titan's company has projected sales for the first seven months of 2021 are given below: Month January February March April May June July Amount $250,000 $340,000 $280,000 $300,000 $350,000 $380,000 $300,000 Monthly salary is $35,000 per month. Total other cash expenses are $90,000/month. The company's cash balance as of March 31, 2021, will be $30,000. Excess cash will be used to retire short-term borrowing (if any). Cost of goods sold is 50% of sales. Purchases and payments are made in the month prior to the sales. Silver Titan's company has no short-term borrowing as of March 31, 2021. Short term loan can be obtained in the end of each month at 12% annual interest with interest paid in the following month for which the loan is outstanding. 30% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 20% are collected in the second month following the sale. Silver Titan's company must have a minimum cash balance of $25,000 at the beginning of each month. Silver Titan's company plans to buy an equipment worth $20,000 in the month of May 2021. Prepare the cash budget for the second quarter of 2021. Silver Titan's company has projected sales for the first seven months of 2021 are given below: Month January February March April May June July Amount $250,000 $340,000 $280,000 $300,000 $350,000 $380,000 $300,000 Monthly salary is $35,000 per month. Total other cash expenses are $90,000/month. The company's cash balance as of March 31, 2021, will be $30,000. Excess cash will be used to retire short-term borrowing (if any). Cost of goods sold is 50% of sales. Purchases and payments are made in the month prior to the sales. Silver Titan's company has no short-term borrowing as of March 31, 2021. Short term loan can be obtained in the end of each month at 12% annual interest with interest paid in the following month for which the loan is outstanding. 30% of sales are collected in cash at time of sale, 50% are collected in the month following the sale, and the remaining 20% are collected in the second month following the sale. Silver Titan's company must have a minimum cash balance of $25,000 at the beginning of each month. Silver Titan's company plans to buy an equipment worth $20,000 in the month of May 2021. Prepare the cash budget for the second quarter of 2021.

Answer rating: 100% (QA)

To prepare the cash budget for the second quarter of 2021 April May June well follow these steps 1 C... View the full answer