The following information is available from the financial records of Pascoe Ltd: Sales Purchases Apri 1...
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The following information is available from the financial records of Pascoe Ltd: Sales Purchases Apri 1 $360 000 $210 000 May 330 000 240 000 June 300 000 180 000 July 390 000 270 000 ▪ Receipts from customers are normally 60 per cent in the month of sale, 30 per cent in the month following the sale, and 8 per cent in the second month following the sale. The balance is expected to be uncollectable. I Pascoe takes full advantage of the 2 per cent discount allowed on purchases paid for by the 10th day of the following month. Purchases for August are budgeted at $600 000, and sales for August are forecast at $660 000. I Cash payments for expenses (other than purchases) are expected to be $144 000 for the month of August. I Pascoe's cash balance on 1 August was $220 000. Required: Prepare a cash budget for Pascoe for August that includes: 1. expected cash receipts during August 2. expected cash payments during August 3. expected cash balance on 31 August. 1 Following is the schedule showing expected cash receipts during the month of August: Pascoe Ltd Cash receipts August Month Per cent Expected collections June 8% $24 000 July 30% 117 000 August 60% 396 000 Total $537 000 Sales $ 300 000 390 000 660 000 The following information is available from the financial records of Pascoe Ltd: Sales Purchases Apri 1 $360 000 $210 000 May 330 000 240 000 June 300 000 180 000 July 390 000 270 000 ▪ Receipts from customers are normally 60 per cent in the month of sale, 30 per cent in the month following the sale, and 8 per cent in the second month following the sale. The balance is expected to be uncollectable. I Pascoe takes full advantage of the 2 per cent discount allowed on purchases paid for by the 10th day of the following month. Purchases for August are budgeted at $600 000, and sales for August are forecast at $660 000. I Cash payments for expenses (other than purchases) are expected to be $144 000 for the month of August. I Pascoe's cash balance on 1 August was $220 000. Required: Prepare a cash budget for Pascoe for August that includes: 1. expected cash receipts during August 2. expected cash payments during August 3. expected cash balance on 31 August. 1 Following is the schedule showing expected cash receipts during the month of August: Pascoe Ltd Cash receipts August Month Per cent Expected collections June 8% $24 000 July 30% 117 000 August 60% 396 000 Total $537 000 Sales $ 300 000 390 000 660 000
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Accounting What the Numbers Mean
ISBN: 978-0073527062
9th Edition
Authors: David H. Marshall, Wayne W. McManus, Daniel F. Viele,
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