QUESTIONS 

1. what is the budgeted cash receipts for the month of may 

2.What is the budgeted cash disbursements for inventory purchases for the month of may 

3. What is the budgeted cash disbursements for the other expenses for the month of may 

4. What is the ending cash balance in the cash budget for the month of may 

Transcribed Image Text:

Madden Company provided the following sales information for the month of May: May Budget Cash sales $ 17,550.00 S 18,000.00 99,000.00 126,000.00 Total sales $116,550.00 $144,000.00 April Actual Credit sales For credit sales, the collection pattern is as follows: Month of sales Month following sales Based on past experience, the company estimates the remaining credit sales are 70% 25% uncollectible. Inventory purchases average 70% of current month's total sales. Payments for inventory are made as follows: 40% Month of purchase Month following purchase Other expenses are as follows: Salaries and wages per month Rent per month Utilities per month Insurance per quarter to be paid in May $ Depreciation expenses per month $ 10,440.00 3,600.00 5,200.00 900.00 1,500.00 $ May 1 cash balance is $9,216.00. Prepare a cash budget for the month of May. Madden Company provided the following sales information for the month of May: May Budget Cash sales $ 17,550.00 S 18,000.00 99,000.00 126,000.00 Total sales $116,550.00 $144,000.00 April Actual Credit sales For credit sales, the collection pattern is as follows: Month of sales Month following sales Based on past experience, the company estimates the remaining credit sales are 70% 25% uncollectible. Inventory purchases average 70% of current month's total sales. Payments for inventory are made as follows: 40% Month of purchase Month following purchase Other expenses are as follows: Salaries and wages per month Rent per month Utilities per month Insurance per quarter to be paid in May $ Depreciation expenses per month $ 10,440.00 3,600.00 5,200.00 900.00 1,500.00 $ May 1 cash balance is $9,216.00. Prepare a cash budget for the month of May.

Answer rating: 100% (QA)

1 Budgeted Cash Receipts For The Month of May Cash receipts Cash sales for May 1800... View the full answer