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Cash Budget - April, May, June

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Credit Sales April May June
160,000 140,000 192,000
Credit Purchases 68,000 64,000 80,000
Cash Disbursements 8,000 7,000 8,400
Interest 3,000 3,000 3,000
Equipment 50,000 4,000

The company predicts that 10% of sales will never be collected, 50% will be collected month of sale, and the remaining 40% will be collected the following month. Purchases on trade accounts will be paid in the month following the purchase. In march the sales were 180,000$

With this information, complete the following table.
_________________________________________________________________________

Beginning cash balance April May June
200,000 ___________ __________

Cash Receipts:
From Credit Sales _________ ____________ ___________

Total Cash Available- __________ ____________ ____________

Cash Disbursments -
Pay Credit purchases 65,000 _____________ __________

Wages Taxes Expenses ________ ___________ __________
Interest _________ ____________ ___________
Equipment purchases _________ _____________ __________
Total Cash Disbursed __________ ___________ ____________

Ending Cash Balance. __________ ___________ ____________

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This explains the prepration of Cash Budget

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Cash Budget

Credit Sales April May June
160,000 140,000 192,000
Credit Purchases 68,000 64,000 80,000
Cash Disbursements 8,000 7,000 8,400
...

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