Prepare a Cash Receipts budget for July - October DC's Projected Revenues & Expenses Sales Cost of

 Prepare a Cash Receipts budget for July - October

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DC's Projected Revenues & Expenses Sales Cost of Goods Sold Gross Profit Admin & Selling Costs Net Income before Taxes June 85,000 52,700 32,300 21,000 11,300 July 86,275 53,491 32,785 21,000 11,785 August 87,569 54,293 33,276 21,000 12,276 Other Information: DC's operates on a calendar year basis Credit Sales from Events and Catering are 20% per month Collections are 60% in the month of sale and 40% in the following month Admin & Selling includes $1,000 depreciation expense Prime (direct) wages are 30% of Sales Admin & Sales salaries are $4,350 per month Wages are paid 80% in current month and 20% the following month Purchases of Direct Materials, which are 32% of Sales, are paid 50% in current month and 50% in following month Loan payment of $1,600 is made at the 1st of each month A dividend to the owners of 10% of the ending quarter's Net Income is paid in Jan, Apr, Jul, Oct April - June Net Income before taxes was $50,000 September 88,883 55,107 33,775 21,000 12,775 October November 91,569 56,773 34,796 21,000 13,796 Ending Inventory needs to be 30% of the following month's Direct Materials Cost of Goods Sold Accounts payable for purchases June 30 was $13,600 Beginning Cash Balance June 30 was $175,000 Effective tax rate is 23%. Quarterly estimated taxes are paid the month following the end of the quarter 90,216 55,934 34,282 21,000 13,282 DC's Projected Revenues & Expenses Sales Cost of Goods Sold Gross Profit Admin & Selling Costs Net Income before Taxes June 85,000 52,700 32,300 21,000 11,300 July 86,275 53,491 32,785 21,000 11,785 August 87,569 54,293 33,276 21,000 12,276 Other Information: DC's operates on a calendar year basis Credit Sales from Events and Catering are 20% per month Collections are 60% in the month of sale and 40% in the following month Admin & Selling includes $1,000 depreciation expense Prime (direct) wages are 30% of Sales Admin & Sales salaries are $4,350 per month Wages are paid 80% in current month and 20% the following month Purchases of Direct Materials, which are 32% of Sales, are paid 50% in current month and 50% in following month Loan payment of $1,600 is made at the 1st of each month A dividend to the owners of 10% of the ending quarter's Net Income is paid in Jan, Apr, Jul, Oct April - June Net Income before taxes was $50,000 September 88,883 55,107 33,775 21,000 12,775 October November 91,569 56,773 34,796 21,000 13,796 Ending Inventory needs to be 30% of the following month's Direct Materials Cost of Goods Sold Accounts payable for purchases June 30 was $13,600 Beginning Cash Balance June 30 was $175,000 Effective tax rate is 23%. Quarterly estimated taxes are paid the month following the end of the quarter 90,216 55,934 34,282 21,000 13,282

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