Can you walk through the steps of setting up this budget?
XYZ has compiled sales and disbursement estimates for the coming months of January through May. Historically 60% of sales are for cash with the remaining 40% collected the following month. The ending balance injanuary is $1000.
1)using the data below prepare a cash budget for February through May. 2) How much total financing will be needed to meet the financial requirements of this period 3)If a balance sheet were prepared at the end of May, what would be the accounts receivable?
Month Sales Disbursements
jan $5,000 $6,000
feb 6,000 8,000
mar 10,000 8,000
apr 10,000 6,000
may 10,000 5,000
This provdes the steps for setting up this budget