Question
Speedy Co. developed the following budget for the month of October. October 1 cash balance $7,400 Cash sales in October $90,000 Credit sales for the
Speedy Co. developed the following budget for the month of October.
October 1 cash balance | $7,400 |
Cash sales in October | $90,000 |
Credit sales for the following months are:
August | $32,000 |
September | $35,000 |
October | $39,000 |
For credit sales the controller has found the following collection pattern:
60% | collected in the month of sale |
20% | collected in the month after sale |
15% | collected two months after the sale |
5% | expected to be uncollectible |
Budgeted material purchases for September and October are:
September | $53,000 |
October | $48,000 |
Material purchases are paid:
20% | in the month of purchase |
80% | in the month following purchase |
Other budgeted costs in October:
Utilities | $5,610 |
Salaries | $22,140 |
Depreciation on the building and equipment | $20,000 |
Entry/Rounding Rules:
Never enter $ or , when inputting numerical answers
Round your answer to the nearest whole number.
Examples:
If your answer is $24,500.47, enter 24500
If your answer is $24,500.51, enter 24501
If your answer is $24,500.00, enter 24500
a. How much is the total budgeted cash collection from accounts receivable in October?
b. How much is the total cash inflows from all sources in October?
c. How much is the October cash payments for purchases made in September and October?
d. How much is the total cash disbursements in October?
e. What is the cash balance on October 31?
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