Question
Use the following Cash Flow Budget to answer questions 1 6. You do not need to show your work for Questions 1-6. Enter your answer
Use the following Cash Flow Budget to answer questions 1 6. You do not need to show your work for Questions 1-6. Enter your answer as a whole number. ex. 1000
Cash Flow Budget Assumptions:
Beginning balance is $20,000
Cost of goods sold is 75% of sales
Building rent is $3,000 a month
Accounts payable turnover ratio is 12
Accounts receivable ratio is 6
Inventory turnover ratio is 6
A quarter of sales are paid in cash
Minimum cash balance is never less than $6,000
April | May | June | |
---|---|---|---|
Projected sales | $12,000 | $15,000 | $18,000 |
Purchases | Question 1 | $15,000 | $12,750 |
Pay Accounts Payable | $11,250 | $13,500 | Question 2 |
Pay Overhead | $3,000 | $3,000 | $3,000 |
Total Cash Outflow | $14,250 | $16,500 | $18,000 |
Projected Sales | $12,000 | $15,000 | $18,000 |
Cash Sales | $3,000 | Question 3 | $4,500 |
Collect Accounts Receivable | $6,000 | $7,500 | Question 4 |
Total Cash Inflow | $9,000 | $11,250 | $13,500 |
Beginning Cash Balance | $20,000 | $14,750 | $9,500 |
Total Cash Inflow | $9,000 | $11,250 | $13,500 |
Total Cash Available | $29,000 | $26,000 | $23,000 |
Total Cash Outflow | $14,250 | $16,500 | $18,000 |
Net Cash Balance | $14,750 | Question 5 | $5,000 |
Borrow/Repay | $ - | $ - | Question 6 |
Ending Cash Balance | $14,750 | $9,500 | $6,000 |
Cumulative Borrowing | $ - | $ - | $1,000 |
Calculate the purchases for April.
Using the table in question 1, calculate the accounts payable for June.
Using the table in question 1, calculate the cash sales for May.
Using the table in question 1, calculate the accounts receivable for June.
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