You will be required to prepare a December cash budget. You are provided with the following information:
Fantastic news! We've Found the answer you've been seeking!
Question:
a] Cash balance on December 1 is $60,000.
b] Actual sales for October and November and expected sales for December are as follows:
October November December
Cash sales $95,000 $105,000 $125,000
Sales on account $600,000 $785,000 $900,000
Sales on account are collected over a three month period as follows:
The month of sale: 15%
The month following sale: 60%
Second-month following sale: 20%
Five percent of sales on account are uncollectible.
c] Purchases of inventory for December will total $420,000. Forty percent of a month
Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date: