Andrew is the owner of a store named Chubs & Hubs Pet Store, which sells dogs...
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Andrew is the owner of a store named Chubs & Hubs Pet Store, which sells dogs and cats. Andrew asked the company accountant to prepare a cash budget for the business covering the following 3 months to 31st March. Here are the details: 1. Sales of dogs and cats are made on cash as follows: January February March Dogs £ 3,000 5,000 7,000 Cats £ 6,000 7,000 8,000 Total £ 9,000 12,000 15,000 2. Suppliers allow two month's credit. The amount due for dogs purchased in November is £400, £500 in December, £600 in January and £700 in February. 3. An insurance premium of £700 is payable in February to cover the months to July. 4. Wages of £1,500 per month are payable for January and February rising to £2,000 for March. 5. Andrew plans to take £600 from the business each month for his own use. 6. Motor expenses of £500 are payable each month. 7. The business regularly runs local radio advertisements costing £500 per month. 8. An equipment hiring expenses £100 per month. Andrew is the owner of a store named Chubs & Hubs Pet Store, which sells dogs and cats. Andrew asked the company accountant to prepare a cash budget for the business covering the following 3 months to 31st March. Here are the details: 1. Sales of dogs and cats are made on cash as follows: January February March Dogs £ 3,000 5,000 7,000 Cats £ 6,000 7,000 8,000 Total £ 9,000 12,000 15,000 2. Suppliers allow two month's credit. The amount due for dogs purchased in November is £400, £500 in December, £600 in January and £700 in February. 3. An insurance premium of £700 is payable in February to cover the months to July. 4. Wages of £1,500 per month are payable for January and February rising to £2,000 for March. 5. Andrew plans to take £600 from the business each month for his own use. 6. Motor expenses of £500 are payable each month. 7. The business regularly runs local radio advertisements costing £500 per month. 8. An equipment hiring expenses £100 per month.
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Answer rating: 100% (QA)
Sales Dogs 30005000700015000 Cats 60007000800021000 Total Sales 150002100036000 Collections from Cus... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
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