Question: Develop a cash budget for the next month using the information provided below. The sales forecasts for the next month is $210,000 The current months

Develop a cash budget for the next month using the information provided below.

  • The sales forecasts for the next month is $210,000
  • The current months sales were $140,000
  • 80% of sales are collected in the month of sale, with the remainder collected in the following month
  • Cost of goods sold equal 70% of sales and the firm has a monthly lease payment of $75,000
  • The cash position at the end of the current month is $70,000
  • The target cash balance is $40,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Short Answer Question 1: Develop a cash budget for the next month using the information provided below. Comment on whether your firm will make additions to the short-term investment portfolio or be...

Q:

Create a Cash Budget for Bobcat Beverage Company using the information provided please share any formulas that were used: \ Budget Data: September $700,000 October 5800,000 November $900,000 4 24%...

Q:

G-Maker, HCMG 750 WEEK 4 Case #2: It appears that there is a mistake with the way you could have calculated this assignment. My instructor simply said that she is giving me a hint with Cash Balance...

Q:

4. Develop a cash budget for the next two months using the information provided below. Monthly sales forecasts are $210,000 and $30,000 for the next two months The current month's sales were $140,000...

Q:

Develop a cash budget for the next two months using the information provided below. -Monthly sales forecasts are $210,000 an $30,000 for the ent two months -The current month's sales were $140,000...

Q:

Develop a cash budget for the next two months using the information provided below Monthly sales forecast are $210,000 and $30,000 for the next two months The current month's sales were $140,000 80%...

Q:

Develop a cash budget for the next three months using the information provided below. Monthly sales forecasts are $150,000, $180,000, and $60,000. The current month's sales are $120,000 Cost of goods...

Q:

Develop a cash budget for the next three months using the information provided below. Monthly sales forecasts are $ 1 5 0 , 0 0 0 , $ 1 8 0 , 0 0 0 , and $ 6 0 , 0 0 0 ( June , July, August ) The...

Q:

Develop a cash budget for the next three months using the information provided below. Monthly sales forecasts are $150,000, $180,000, and $60,000. The current months sales are $120,000 Cost of goods...

Q:

The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: December. Or the...

Q:

Using only an addition, how do you add eight 8s and get the number 1000?

Q:

Q5: Describe the transformation of the function f(x)=x represented by a function g(x)=3x +7. Show the graph of each function.

Q:

What is planned in such a way to increase the effective yield an investor gets from his surplus invested fund? a . Income Management b . Profit Management c . Investment Management d . Portfolio...

Q:

The most recent financial statements for Crosby, Incorporated, appear below. Sales for 2022 are projected to grow by 25 percent. Interest expense will remain constant; the tax rate and the dividend...