Prepare Cash Budget from Budgeted Transactions Prepare a cash budget for the month ended May 31,...

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Prepare Cash Budget from Budgeted Transactions Prepare a cash budget for the month ended May 31, 2019. Campton Company anticipates a cash balance of $89,000 on May 1, 2019. The following budgeted transactions for May 2019 present data related to anticipated cash receipts and cash disbursements: 1. For May, budgeted cash sales are $65,000 and budgeted credit sales are $505,000. (Credit sales for April were $450,000.) In the month of sale, 40% of credit sales are collected, with the balance collected in the month following sale. 2. Budgeted merchandise purchases for May are $285,000. (Merchandise purchases in April were $240,000.) In the month of purchase, 70% of merchandise purchases are paid for, and the balance is paid for in the following month. 3. Budgeted cash disbursements for salaries and operating expenses for May total $170,000. 4. During May, $25,000 of principal repayment and $4,000 of interest payment are due to the bank. 5. A $20,000 income tax deposit is due to the federal government during May. 6. A new delivery truck will be purchased during May for $7,000 cash and an $8,000 note payable. Depreciation for May will be $525. Prepare a cash budget for Campton Company for the month of May 2019. Campton Company Cash Budget For the Month Ended May 31, 2019 Beginning cash balance $ 89,000 Cash receipts: Cash sales 65,000 Collections on credit sales 505,000 x Cash available $ 0 x Cash disbursements: Payments for merchandise $ 285,000 x Salaries and operating expense payments 0 x Principal and interest payment 0 x Income tax deposit 0 x Payment on truck Total cash disbursements Ending cash balance Check 0 x $ 0 x $ 0 x Prepare Cash Budget from Budgeted Transactions Prepare a cash budget for the month ended May 31, 2019. Campton Company anticipates a cash balance of $89,000 on May 1, 2019. The following budgeted transactions for May 2019 present data related to anticipated cash receipts and cash disbursements: 1. For May, budgeted cash sales are $65,000 and budgeted credit sales are $505,000. (Credit sales for April were $450,000.) In the month of sale, 40% of credit sales are collected, with the balance collected in the month following sale. 2. Budgeted merchandise purchases for May are $285,000. (Merchandise purchases in April were $240,000.) In the month of purchase, 70% of merchandise purchases are paid for, and the balance is paid for in the following month. 3. Budgeted cash disbursements for salaries and operating expenses for May total $170,000. 4. During May, $25,000 of principal repayment and $4,000 of interest payment are due to the bank. 5. A $20,000 income tax deposit is due to the federal government during May. 6. A new delivery truck will be purchased during May for $7,000 cash and an $8,000 note payable. Depreciation for May will be $525. Prepare a cash budget for Campton Company for the month of May 2019. Campton Company Cash Budget For the Month Ended May 31, 2019 Beginning cash balance $ 89,000 Cash receipts: Cash sales 65,000 Collections on credit sales 505,000 x Cash available $ 0 x Cash disbursements: Payments for merchandise $ 285,000 x Salaries and operating expense payments 0 x Principal and interest payment 0 x Income tax deposit 0 x Payment on truck Total cash disbursements Ending cash balance Check 0 x $ 0 x $ 0 x

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