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    Cash budget

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    Catherine O'Shea is the manager of an extremely successful gift shop, Kate's Gifts, which is operates for the benefit of local charities. From the data below, she wants a cash budget showing expected cash receipts and disbursements for the month of April, and the cash balance expected as of April 30, 2003:

    ? Bank note due April 10: $90,000 plus $4,500 interest
    ? Amortization for April: $2,500
    ? Two-year insurance policy due April 14 for renewal: $1,500, to be
    paid in cash
    ? Planned cash balance, March 31,2003: $500,000, 40 percent paid in
    month of purchase, 60 percent paid in next month
    ? Customer recievables as of March 31: $60,000 from February sales,
    $450,000 from March sales
    ? Payrolls due in April: $90,000
    ? Other expenses for April: $45,000
    ? Accrues taxes fro April, payable in June: $7,500
    ? Sales for April: $1,000,000, half collected in month of sale, 40 percent
    in next month, 10 percent in third month
    ? Accounts payable, March 31,2003: $460,000

    Prepare a cash budget.

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    Solution Preview

    Catherine O'Shea is the manager of an extremely successful gift shop, Kate's Gifts, which is operates for the benefit of local charities. From the data below, she wants a cash budget showing expected cash receipts and disbursements for the month of April, and the cash balance ...

    Solution Summary

    This provides the steps to prepare cash budget

    $2.19

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