Question: Daniel Merrill is the manager of an airport gift shop

Daniel Merrill is the manager of an airport gift shop, Merrill News and Gifts. From the following data, Mr. Merrill wants a cash budget showing expected cash receipts and disbursements for the month of April, and the cash balance expected as of April 30, 20X7.
● Planned cash balance, March 31, 20X7: $100,000
● Customer receivables as of March 31: $530,000 total, $80,000 from February sales, $450,000 from March sales
● Accounts payable, March 31: $460,000
● Merchandise purchases for April: $450,000, 40% paid in month of purchase, 60% paid in next month
● Payrolls due in April: $90,000
● Other expenses for April, payable in April: $45,000
● Accrued taxes for April, payable in June: $7,500
● Bank note due April 10: $90,000 plus $7,200 interest
● Depreciation for April: $2,100
● Two-year insurance policy due April 14 for renewal: $1,500, to be paid in cash
● Sales for April: $1,000,000, half collected in month of sale, 40% in next month, 10% in third month
Prepare the cash budget for the month ending April 30, 20X7.


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  • CreatedNovember 19, 2014
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