Prepare a cash budget for Slater Limited using the following information. should show expected cash receipts and
Question:
Prepare a cash budget for Slater Limited using the following information. should show expected cash receipts and disbursements for June and the expected on June 30.
1. Beginning cash balance on June 1: $45,000. The company wants to ma minimum cash balance of $40,000 at the end of every month.
2. Cash receipts from sales: 55% are collected in the month of sale, 45% in the next month. The following amounts are budgeted sales: May $275,000
June $425,000
3. Payments on purchases: 60% in the month of purchase and 40% in the month following purchase. The following amounts are budgeted merchandise purchases:
May $150,000
June $175,000
4. Budgeted cash disbursements for salaries in June: $75,000.
5. Budgeted depreciation expense on long-lived assets for June: $1,000.
6. Other cash expenses budgeted for June: $150,000.
Fundamentals of Financial Management
ISBN: 9780273713630
13th Revised edition
Authors: James van Horne, John Wachowicz