With the following information, prepare a cash budget for January to April 2020. As per the...
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With the following information, prepare a cash budget for January to April 2020. As per the marketing department, sales forecasts are as follows: November 2019 $50,000 December 2019 $70,000 January 2020 $50,000 February 2020 $55,000 March 2020 $70,000 April 2020 $80,000 The credit manager provides the following information: • 80% of revenue is on a cash basis 20% of revenue is collected after 30 days Cost of Sales, totalling 50% of revenue, are paid for 30 days after purchases are made Monthly selling and administrative expenses are as follows: Salaries $12,000 Finance costs $2,500 Leasing $800 Advertising $900 Other expenses are as follows: . Taxes: $20,000 in February and $11,000 in April . Purchase of Assets: $3,000 in January, $12,000 in February, $20,000 in March, and $3,000 in April The cash balance on January 1, 2020 is $5,000. With the following information, prepare a cash budget for January to April 2020. As per the marketing department, sales forecasts are as follows: November 2019 $50,000 December 2019 $70,000 January 2020 $50,000 February 2020 $55,000 March 2020 $70,000 April 2020 $80,000 The credit manager provides the following information: • 80% of revenue is on a cash basis 20% of revenue is collected after 30 days Cost of Sales, totalling 50% of revenue, are paid for 30 days after purchases are made Monthly selling and administrative expenses are as follows: Salaries $12,000 Finance costs $2,500 Leasing $800 Advertising $900 Other expenses are as follows: . Taxes: $20,000 in February and $11,000 in April . Purchase of Assets: $3,000 in January, $12,000 in February, $20,000 in March, and $3,000 in April The cash balance on January 1, 2020 is $5,000.
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To prepare a cash budget for January to April 2020 we need to consider the sales forecasts revenue collection cost of sales selling and administrative expenses taxes and purchase of assets Lets calcul... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
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