Given the following information below. Month sales (projected/actual) wages (projected/annual) October 2020 12,000 3,000 November 2020...

 

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Given the following information below. Month sales (projected/actual) wages (projected/annual) October 2020 12,000 3,000 November 2020 14, 000 3, 200 December 2020 15, 000 January 2021 3,000 4,000 20,000 February 2021 15, 000 3, 500 March 2021 19, 000 3,000 April 2021 16,300 2,900 May 2021 16, 000 3, 200 June 2021 15,000 2,980 Additional information: 1. The cash on hand as of January 2021 is 6,500. 2. Fifteen percent of the sales are for cash; 45 percent are collected in the month following sales; and the remaining balance is collectible in the second month following the sales. 3. A monthly purchase of 60% of the next month's sale. 4. Rent is 600 per month. 5. Miscellaneous expense is 1.5% of the month's sales. Required: prepare a cash budget for the 3 months period spanning January 2021-March 2021. Given the following information below. Month sales (projected/actual) wages (projected/annual) October 2020 12,000 3,000 November 2020 14, 000 3, 200 December 2020 15, 000 January 2021 3,000 4,000 20,000 February 2021 15, 000 3, 500 March 2021 19, 000 3,000 April 2021 16,300 2,900 May 2021 16, 000 3, 200 June 2021 15,000 2,980 Additional information: 1. The cash on hand as of January 2021 is 6,500. 2. Fifteen percent of the sales are for cash; 45 percent are collected in the month following sales; and the remaining balance is collectible in the second month following the sales. 3. A monthly purchase of 60% of the next month's sale. 4. Rent is 600 per month. 5. Miscellaneous expense is 1.5% of the month's sales. Required: prepare a cash budget for the 3 months period spanning January 2021-March 2021.

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Assumption Purchases given are only on cash basis Cash Budget Feb Jan 6500 Be... View the full answer