Question: From the text, complete the cash flow statement in problem # 10 of Chapter 26 Questions and Problems. Using a visual model, present a discussion
From the text, complete the cash flow statement in problem # 10 of Chapter 26 Questions and Problems.
Using a visual model, present a discussion on the drivers to the end of June cash position.
10. Calculating the Cash Budget Here are some important figures from the budget of
March.
Cornell, Inc., for the second quarter of 2016:
Credit salesCredit purchasesCash disbursements Wages, taxes, and expenses Equipment purchases
Interest
April
The company predicts that 5 percent of its credit sales will never be collected, 35percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Using this information, complete the following cash budget:
$601,900232,850
May
In March 2016, credit sales were $332,640, and credit purchases were $247,100.
62,96418,058131,400
$627,300277,900
June
76,36418,058144,200
$693,790317,380
Beginning cash balanceCash receipts Cash collections from credit sales Total cash availableCash disbursements Purchases Wages, taxes, and expenses Equipment purchases Ending cash balance
79,67018,0580
Interest
April
Total cash disbursements
$443,500
May
June
822
10.CalculatingtheCashBudgetHerearesomeimportantfiguresfromthebudgetof
Cornell,Inc.,forthesecondquarterof2016:
April
May
June
Credit sales
$601,900
$627,300
$693,790
Credit purchases
232,800
277,900
317,380
Wages, taxes and expenses
62,964
76,364
79,670
Interest
18,058
18,058
18,050
Equipment purchases
131,400
144,200
0
The company predicts, that 5 percent of it sales will never be collected 35 percent of its sales will be collected in the month of the sales, and the remaining 60 percent will be paid in the month. Credit purchases will be paid in the month following the purchases will be paid in the month following the purchase.
In March 2016, credit sales were $332,640, and credit purchases were $247,100. Using this information, complete the following cash budjet:
April
May
June
Beginning cash balance
$443,500
Cash receipt
Cash collection from credit sales
Total cash available
Cash disbursement
Purchases
Purchases
Wages, taxes, and expenses
Interest
Equipment purchases
Total cash disburses
Ending cash balnaces
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