Purchase Solution

Cash budget

Not what you're looking for?

Ask Custom Question

Cash budget
Chadmark Corporation's budgeted monthly sales are $3,000. Forty percent of its customers pay in the first month and take the 2 percent discount. The remaining 60 percent pay in the month following the sale and don't receive a discount. Chadmark's bad debts are very small and are excluded from this analysis. Purchases for next month's sales are constant each month at $1,500. Other payments for wages, rent, and taxes are constant at $700 per month. Construct a single month's cash budget with the information given. What is the average cash gain or (loss) during a typical month for Chadmark Corporation?

Purchase this Solution
Solution Summary

The solution explains how to prepare a cash budget

Solution Preview

The average cash gain or loss would be the difference between the cash inflow and the cash outflow. The cash inflow is from ...

Purchase this Solution
Free BrainMass Quizzes
Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Introduction to Finance

This quiz test introductory finance topics.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

View More Free Quizzes
Related BrainMass Solutions

  • What information is needed in order to prepare a cash budget?

    171897 Cash Budgets and Operating Budgets What information is needed in order to prepare a cash budget? What is the relationship between an operating budget and a cash budget? Why is it important for an organization to prepare a cash budget?

  • Description of a cash budget & its useful to an organization

    The cash budget is somewhat based upon the operating budget, as sales are used to calculate what is expected in terms of the cash receipts budget. As you will find out, cash is king.

  • Budgeting

    8276 Cash budgeting: production budget, purchasing budget, sales budget and cash budget See attachment for a cash budgeting question. Please see the attached file.

  • Operating budget and cash budgets

    235866 Operating budget and a cash budget What information is needed in order to prepare a cash budget? What is the relationship between an operating budget and a cash budget? Why is it important for an organization to prepare a cash budget?

  • Cash Budget

    Why is it important to create a cash budget? Please see the attachment The solution explains how to create a cash budget and explains the importance of cash budget

  • The Purpose of the Cash Budget

    Cash budget sales budget, purchase budget, production budget etc. The cash budget is a summary of the firm's expected cash inflows and Outflows over a particular period of time.

  • Budgets for Healthcare Organization

    The expense budget lists all operating expenses that are expected to be incurred during the budget period, both fixed and variable. 3) Cash budget The cash budget represents the organization's cash inflows and outflows.

  • What are the steps to creating a cash budget?

    This is usually the last budget that the company prepares. To prepare a cash budget, the first number used to start the budget is the beginning cash balance.

  • Budget Discussion Questions for Mama's Needlework

    Cash Budget: Why doesn't the Net Cash from Operations of $93 match the Annual Budget $105? One reason is that our budget components were only for Product B. What is the other reason? Cash Budget: Why did they borrow $50 in the first quarter?

  • cash budget

    251803 Solving a cash budget problem Is there concerns with the cash budget and the company with this budget attachment. Is there concerns with the cash budget and the company with this budget attachment Let us understand about budget.

View More Related Solutions