Question
The following information pertains to Amigo Corporation: Month Sales Purchases July $30,000 $10,000 August 34,000 12,000 September 38,000 14,000 October 42,000 16,000 November 48,000 18,000
The following information pertains to Amigo Corporation:
Month Sales Purchases
July $30,000 $10,000
August 34,000 12,000
September 38,000 14,000
October 42,000 16,000
November 48,000 18,000
December 60,000 20,000
Cash is collected from customers in the following manner:
Month of sale (2% cash discount) 30%
Month following sale 50%
Two months following sale 15%
Amount uncollectible 5%
40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
Required: Complete the cash budget for the 4th quarter
October November December
Beginning Balance: $10,000
Cash Collections from:
August
September
October
November
December
Total Cash Collections A) B) C)
Cash Payments from:
September
October
November
December
Total Cash Payments D) E) F)
Change in Cash G) H) I)
Ending Cash Balance J) K) L)
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Accounting Information Systems
Authors: Steven M. Bragg
2nd Edition
164221079X, 9781642210798
