Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2012:

       

	April	May	June
Credit sales	$312,000	$291,200	$350,400
Credit purchases	118,240	141,040	166,800
Cash disbursements
Wages, taxes, and expenses	43,040	10,800	62,640
Interest	10,480	10,480	10,480
Equipment purchases	74,000	135,000	0

The company predicts that 3 percent of its credit sales will never be collected, 32 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2012, credit sales were $196,000 and credit purchases were $134,400. Using this information, complete the following cash budget:

            

	April	May	June
Beginning cash balance	$112,000
Cash receipts
Cash collections from credit sales
Total cash available
Cash disbursements
Purchases
Wages, taxes, and expenses
Interest
Equipment purchases
Total cash disbursements
Ending cash balance

Answer rating: 100% (QA)

Solution Cash Budget Particulars April 182000 264650 434150 May June Beginning cash balance ... View the full answer