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    Prepration of budget

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    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

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    Solution Summary

    This provdes the steps for setting up this budget