Kelsey is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the...

 

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Kelsey is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted July Sales $ 64,000 40,400 August $ 80,000 33,600 September $ 48,000 34,400 Cash payments for merchandise purchases Sales are 20% cash and 80% on credit. Sales in June were $56,250. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash and $5,000 in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $15,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $15,000 at month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,000 per month), and rent ($6,500 per month). (1) Prepare a schedule of cash receipts from sales for July, August, and September. (2) Prepare a cash budget for July, August, and September. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cash receipts from sales for July, August, and September. KELSEY Schedule of Cash Receipts from Sales July September August 64,000 $ 80,000 $ 48,000 Sales $ Cash receipts from Cash sales Collections of prior period sales Total cash receipts Required 1 Required 2 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest dollar.) KELSEY Cash Budget July August September Beginning cash balance Total cash available Less: Cash payments for Total cash payments. Preliminary cash balance Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance July $ 0 0 August 5,000 < Required 1 0 0 0 September Required 2 > Kelsey is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted July Sales $ 64,000 40,400 August $ 80,000 33,600 September $ 48,000 34,400 Cash payments for merchandise purchases Sales are 20% cash and 80% on credit. Sales in June were $56,250. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash and $5,000 in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $15,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $15,000 at month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,000 per month), and rent ($6,500 per month). (1) Prepare a schedule of cash receipts from sales for July, August, and September. (2) Prepare a cash budget for July, August, and September. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a schedule of cash receipts from sales for July, August, and September. KELSEY Schedule of Cash Receipts from Sales July September August 64,000 $ 80,000 $ 48,000 Sales $ Cash receipts from Cash sales Collections of prior period sales Total cash receipts Required 1 Required 2 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest dollar.) KELSEY Cash Budget July August September Beginning cash balance Total cash available Less: Cash payments for Total cash payments. Preliminary cash balance Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance - End of month Loan balance July $ 0 0 August 5,000 < Required 1 0 0 0 September Required 2 >

Answer rating: 100% (QA)

1 2 Cash Receipt Budget July 2000 8000 Total Sales Cash Sales Credit Sales Cash Sales Coll... View the full answer