Use the information to formulate a simplified cash budget for Heidi's Place. Sales Inventory Purchases Other...

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Use the information to formulate a simplified cash budget for Heidi's Place. Sales Inventory Purchases Other Cash Expenses Capital Purchases (With cash) Dec. Jan. Inventory: Feb. $20,000 $30,000 $40,000 16,000 17,000 18,000 13,000 14,000 15,000 0 0 16,000 Mar. Sales: 40% of the sales are cash while the balance are credit sales. 60% of the credit sales are collected in the month of sale and the balance in the next month. $50,000 21,000 16,000 0 Purchases: 70% of the purchases are paid in the month of the purchase while 30% are paid in the next month. Assume that the beginning cash balance of January 1 is $4,000. Assume that other cash expenses and capital purchases are paid for during the month they are incurred (for example, other cash expenses of $13,000 for December were paid in December). Required: Prepare a cash budget using the cash receipts and disbursements approach for the months of January - March. Use the information to formulate a simplified cash budget for Heidi's Place. Sales Inventory Purchases Other Cash Expenses Capital Purchases (With cash) Dec. Jan. Inventory: Feb. $20,000 $30,000 $40,000 16,000 17,000 18,000 13,000 14,000 15,000 0 0 16,000 Mar. Sales: 40% of the sales are cash while the balance are credit sales. 60% of the credit sales are collected in the month of sale and the balance in the next month. $50,000 21,000 16,000 0 Purchases: 70% of the purchases are paid in the month of the purchase while 30% are paid in the next month. Assume that the beginning cash balance of January 1 is $4,000. Assume that other cash expenses and capital purchases are paid for during the month they are incurred (for example, other cash expenses of $13,000 for December were paid in December). Required: Prepare a cash budget using the cash receipts and disbursements approach for the months of January - March.

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To prepare a cash budget for Heidis Place for the months of January to March we will use the cash re... View the full answer