Question
With the following information, create a cash budget for Seashore Organics for January, February and March. Sales: November $30,000 December 70,000 January 25,000 February 50,000
With the following information, create a cash budget for Seashore Organics for January, February and March.
Sales:
November $30,000
December 70,000
January 25,000
February 50,000
March 32,000
The controller indicates:
40% of sales will be received on a cash basis
50% of sales will be received in 30 days
10% of sales will be received in 60 days
The company purchased:
November $30,000
December 20,000
January 45,000
February 48,000
March 27,000
The companys policy is to pay 30 % OF PURCHASES on a cash basis and the other 70 % in 30 days. The monthly administrative expenses are paid in the month incurred and are broken down as follows:
Salaries $ 10,000
Depreciation 2,000
Rent 3,000
Office supplies 300
Internet/phone/advertising 800
The companys opening cash balance for the month of January is $ 1,000. The boss is upset about that and just declared a minimum month-ending cash balance of $15,000 as of January 5th.
Use your template to create a full cash budget for Jan to March.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
