From the information below, get a cash budget for ABC Company for April, May, and June 2024
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Question:
From the information below, get a cash budget for ABC Company for April, May, and June 2024 in a columnar form.
Month | Sales | Purchases | Wages | Exp. |
Jan. (actual) | 80,000 | 45,000 | 20,000 | 5,000 |
Feb. (actual) | 80,000 | 40,000 | 18,000 | 6,000 |
Mar. (actual) | 75,000 | 42,000 | 22,000 | 6,000 |
Apr. Budget | 90,000 | 50,000 | 24,000 | 6,000 |
May Budget | 85,000 | 45,000 | 20,000 | 6,000 |
Jun. Budget | 80,000 | 35,000 | 18,000 | 5,000 |
You are further informed that:
- 10% of purchases and 20% of sales are for cash.
- The average collection period of the company is half a month and credit purchases are paid off regularly after one month.
- Wages are paid half monthly and the rent of $500, excluded in expense, is paid monthly.
- Cash and bank balance on April 1 was $15,000, and the company aims to keep it below this figure at the end of every month. The excess cash is placed in fixed deposits.
Related Book For
Fundamental accounting principle
ISBN: 978-0078025587
21st edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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