Budgeting & Cost Control

HHH Appliance Assignment 2A & 2B - Cash Budget

Instructions:

Please complete the Cash Budget for HHH Appliance for the year.You will need the following information to complete the budget:

Assignment 1: both the instructions and the budgets (spreadsheets) you created.

Helen estimates that 52% of her sales (gross receipts) and service revenue will be on account and 48% will be cash sales and service revenue.

The projected cash balance at the beginning of January is the amount of personal funds that Helen budgets to contribute into the business.

Beginning in February, Helen anticipates that 80% of current month credit sales will be collected during the month.Any credit sales that were not collected during the month will be collected in the following month.

Beginning in February, Helen anticipates that 80% of current month accounts payable will be paid during the month.Any accounts payable that were not paid during the month will be paid in the following month.

Beginning in February, purchases on account are the cost of goods sold for the month.

The furniture that was purchased oBudgeting & Cost Control

HHH Appliance Assignment 2A & 2B - Cash Budget

Instructions:

Please complete the Cash Budget for HHH Appliance for the year.You will need the following information to complete the budget:

Assignment 1: both the instructions and the budgets (spreadsheets) you created.

Helen estimates that 52% of her sales (gross receipts) and service revenue will be on account and 48% will be cash sales and service revenue.

The projected cash balance at the beginning of January is the amount of personal funds that Helen budgets to contribute into the business.

Beginning in February, Helen anticipates that 80% of current month credit sales will be collected during the month.Any credit sales that were not collected during the month will be collected in the following month.

Beginning in February, Helen anticipates that 80% of current month accounts payable will be paid during the month.Any accounts payable that were not paid during the month will be paid in the following month.

Beginning in February, purchases on account are the cost of goods sold for the month.

The furniture that was purchased on the credit card will be paid for in February.

Wages are paid on the 1^st and the 15^th of the month for the previous 2 weeks.

Income tax payments are made every quarter.The first payment is made on April 15.It is 21% of the total net income for January - March. The following income tax payments are on June 15 (for April & May), September 15 (for June - August), and January 15 (in the following year for September - December) for 21% of the previous quarter's income.

Remittance of sales taxes (for all sales, whether or not they have been collected) are due quarterly on April 30 (for Jan - Mar), July 31 (for Apr-Jun), October 31 (for July - September), & January 31 (in the following year for October - December).

Remittance of payroll taxes & withholding amounts are due on the 15^th of the following month for the previous month.

Your projected cash balance, end of month for January should equal cash on your balance sheet budget from Assignment 1.n the credit card will be paid for in February.

Wages are paid on the 1^st and the 15^th of the month for the previous 2 weeks.

Income tax payments are made every quarter.The first payment is made on April 15.It is 21% of the total net income for January - March. The following income tax payments are on June 15 (for April & May), September 15 (for June - August), and January 15 (in the following year for September - December) for 21% of the previous quarter's income.

Remittance of sales taxes (for all sales, whether or not they have been collected) are due quarterly on April 30 (for Jan - Mar), July 31 (for Apr-Jun), October 31 (for July - September), & January 31 (in the following year for October - December).

Remittance of payroll taxes & withholding amounts are due on the 15^th of the following month for the previous month.

Your projected cash balance, end of month for January should equal cash on your balance sheet budget from Assignment 1.