Share
Explore BrainMass

Cash Budget - April, May, June

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. __________ ___________ ____________

Solution Preview

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
...

Solution Summary

This explains the prepration of Cash Budget

$2.19