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# Cash budget

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.

#### 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