The controller of Dash Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information:
June July August
Sales 120,000 150,000 200,000
Manufacturing costs 50,000 65,000 72,000
Selling & admin exp 35,000 40,000 45,000
Capital expenditures 48,000
1. Prepare a monthly cash budget and supporting schedules for June, July, and August 2010.
2. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
You don't give me the traditional information about when the sales are collected and ...
You don't give me the traditional information about when the sales are collected and the expenses paid (the "stagger") so I will assume that all the cash receipts and payments are made in the same month as shown. See report in excel, attached, with ideas for the controller based on the $48,000 paid in June or July (can't tell from this which it is).