Question
The budget for April 2019 and the following information is provided: The cash balance on 1 April 2019 is $ 52,000. The actual and expected
The budget for April 2019 and the following information is provided:
The cash balance on 1 April 2019 is $ 52,000.
The actual and expected sales of the company are as follows:
March $ 168,000
April $ 249,600
May $ 216,000
30% monthly sales in cash form and the balance in credit form. 80% of credit sales to be collected in the month the sales is made and balance collected in following month.
Cost of goods sold is 70% of monthly sales.
Final inventory of merchandise is 40% of the cost of goods sold the following month.
Purchase on merchandise are on credit. 70% of purchase is paid in month of purchase is made and 30% is paid in the following month. Total purchase cost for merchandise in March is $ 135,720.
In April, sales and administration expenses are $ 20,0000. Expenses include depreciation of $ 6,000. They are paid in the month the expenses incurred.
a. Schedule of cash collection from sales for April 2019.
b. Purchase budget for April 2019.
c. Cash payment schedule for purchases for April 2019.
d. Cash budget for April 2019.
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