Cooper Company, a retailer of camping supplies has budgeted activity for January using the following data:

Cash sales	$25,000
Credit sales (60% collected in month of sale)	380,000
Selling and administrative costs (including depreciation)	50,000
Depreciation expense	5,000
Merchandise Inventory, January 1	21,000
Merchandise Inventory, January 31	20,000
Beginning cash balance	3,000
Minimum cash balance required	2,500
Cost of goods sold is 55% of Cooper’s selling price
All purchases are paid in cash
Selling and administrative costs are paid in month of purchase

Prepare a cash budget for January, How is this calculated?

Answer rating: 100% (QA)

Particulars Amount Begning cash balance 3000 Cash sales 25000 collection from cre... View the full answer