Example (5)ASS The following information was available to R.R. Company 1- Sales at March was $...
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Example (5)ASS The following information was available to R.R. Company 1- Sales at March was $ 40,000 2- Sales forecasted as follows: April May June $ 50,000 80,000 60,000 50,000 July August 40,000 3- The cash sales equals 60%, credit sales 40% collected in the next month following the month of sale 4- Cost of goods sold equals 70% of the total sales 5- End. Inv... valued at $ 20,000 plus 80% of the expected cost of goods sold for the next month 6- Purchases payments 50% during 14 days at the same month of purchases and 50% in the next month 7- Monthly fixed salaries $2,500; sales commission equals 15% of sales, insurance 1,000, depreciation 1,000 8- The company purchased new equipment 10,000, paid 40% in April 9- Beg. Cash balance for April $ 10,000 10- The minimum cash balance $ 10,000 Required: Prepare the Cash Budget if the company will borrowing Example (5)ASS The following information was available to R.R. Company 1- Sales at March was $ 40,000 2- Sales forecasted as follows: April May June $ 50,000 80,000 60,000 50,000 July August 40,000 3- The cash sales equals 60%, credit sales 40% collected in the next month following the month of sale 4- Cost of goods sold equals 70% of the total sales 5- End. Inv... valued at $ 20,000 plus 80% of the expected cost of goods sold for the next month 6- Purchases payments 50% during 14 days at the same month of purchases and 50% in the next month 7- Monthly fixed salaries $2,500; sales commission equals 15% of sales, insurance 1,000, depreciation 1,000 8- The company purchased new equipment 10,000, paid 40% in April 9- Beg. Cash balance for April $ 10,000 10- The minimum cash balance $ 10,000 Required: Prepare the Cash Budget if the company will borrowing
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To prepare the cash budget we need to estimate the cash inflows and outflows for each month Lets start by calculating the cash collections from sales and the cost of goods sold for each month 1 Cash C... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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