Question: Grippers has 12 500 in cash on hand on January

Grippers has $ 12,500 in cash on hand on January 1. Refer to Short Exercises S22A- 15, S22A- 17, and S22A- 18 for cash receipts and cash payment information. Assume Grippers has cash payments for selling and administrative expenses including salaries of $ 50,000 plus commissions of 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $ 10,000. Prepare a cash budget for January and February. Will Grippers need to borrow cash by the end of February?
50% in the month of the sale
30% in the month after the sale
18% two months after the sale
2% never collected
November sales totaled $ 400,000 and December sales were $ 425,000. Prepare a schedule for the budgeted cash receipts from customers for January and February.
Round answers to the nearest dollar.

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  • CreatedJanuary 16, 2015
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