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Cash Budget

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Jen Kim is the manager of an airport gift shop. Kim News and Gifts. From the foolowing data, Ms. Kim wants a cash budget showing expected cash receipts and disbursements for the month of April and the cash balance expected as of April 30, 20X4.

-Bank note due April 10:\$90,000 plus \$4,500 interest

-Depreciation for April:\$2,100

-Two year insurance policy due April 14 for renewal: \$1,500 to be paid in cash

-Planned cash balance, March 31,20X4:\$80,000

-Merchandise purchases for April:\$450,000, 40% paid in month of purchase, 60% paid in next month

-Customer receivables as of March 31:\$60,000 from February sales, \$45,000 from March sales

-Payrolls due in April:\$90,000

-Other expenses for April, payable in April:\$45,000

-Accrued taxes for April, payable in June: \$7,500

-Sales for April: \$1,000,000, half collected in month of sale, 40% in next month, 10% in third month

-Accounts payable, march 31, 20X4: \$460,000

Solution Preview

en Kim is the manager of an airport gift shop. Kim News and Gifts. From the foolowing data, Ms. Kim wants a cash budget showing expected cash receipts and disbursements for the month of April and the cash balance expected as of April 30, ...

Solution Summary

This provides the steps to prepare the cash budget

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