Consider the income statement in exhibit 7-12
The cash balance may 31 2004 is $15000, Sales proceeds are collected as follows: 80% month of sale, 10% second month, 10% third month
Accounts receivable are $40000 on May 31, 2004, consisting of $16000 from April sales and $24,000 from May sales.
Accounts payable on May 31, 2004, are $145,000 Raleigh Company pays 25% of purchases during the month of purchase and the remainder during the following month. All operating expenses requiring cash are paid during the month of recognition. Insurance and property taxes are paid annually in December, however.
Prepare a cash budget for June . Confine your analysis to the given data. Ignore income taxes and other possible items that might affect cash© BrainMass Inc. brainmass.com June 3, 2020, 6:44 pm ad1c9bdddf
Please see the attached file. The Sales for June should be 290 instead of 200 given. The gross profit is 88 and so the ...
The solution explains the preparation of a cash budget.