Purchase Solution

Cash budget

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution

Solution Summary

This provides the steps to prepare 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 ...

Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Business Processes

This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.