Waskom Furniture Company provides the following data for the months of July through October: Collections from customers

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Waskom Furniture Company provides the following data for the months of July through October:
Month Sales Purchases $180,000 $105,000 July 165,000 120,000 August September 150,000 90,000 October 195,000 135,000

Collections from customers are normally 70% in the month of sale and 30% in the following month. All purchases are on credit and paid in cash in the following month. November sales are budgeted to be $165,000, and November purchases are forecast to be $150,000. Cash disbursements for expenses in November are budgeted to be $35,000. Beginning cash balance on November 1 is $55,000. Required: Prepare a cash budget in good form for November.

Cash Budget
A cash budget is an estimation of the cash flows for a business over a specific period of time. These cash inflows and outflows include revenues collected, expenses paid, and loans receipts and payment.  Its primary purpose is to provide the...
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Horngrens Financial and Managerial Accounting

ISBN: 978-0133255584

4th Edition

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

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