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# G Enterprises

G Enterprises had sales of \$50,000 in March and \$60,000 in April. Forecast sales for May June and July are \$70,000, \$80,000 and \$100,000 respectively. The firm has a cash balance of \$5000 on May 1st and wants to maintain a minimum cash balance of \$5000.
Prepare and interpret a cash budget for May June and July
1-the firm make 20% of sales for cash
2- The firm receives \$2000 of other income per month
3- The firm's actual or expected purchases, all made for cash are \$50000, \$70000, \$80000 for the months of May thru July respectively
4- Rent is \$3000 per month
5- Wages and salaries are 10% of the previous month's sales
6- Cash dividends of \$3000 will be paid in June
7- Principle and interest \$4000 due June
8- A cash purchase of equipment costs \$6000 scheduled in July
9- Taxes due in June \$6000

#### Solution Preview

Cash Budget Basic

G Enterprises had sales of \$50,000 in March and \$60,000 in April. Forecast sales for May June and July are \$70,000, \$80,000 and \$100,000 respectively. The firm has a cash balance of \$5000 on May ...

#### Solution Summary

This solution is comprised of a detailed explanation to prepare and interpret a cash budget for May June and July (G Enterprises).

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