Cash Budgeting for Binghamton Film Corporation
Not what you're looking for?
The following information is from Binghamton Film Corporation's financial records.
Month Sales Purchases
April $72,000 $42,000
May 66,000 48,000
June 60,000 36,000
July 78,000 54,000
Collections from customers are normally 70 percent in the month of the sale, 20 percent in the month following the sale, and 9 percent in the second month following sale. The balance is expected to be uncollectable. All purchases are on account. Management takes full advantage of the 2% discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $60,000, and sales for August are forecasted at $66,000. Cash disbursements for expenses are expected to be $14,000 for the month of August. The company's cash balance on August 1 was $22,000.
1. Figure the schedule for expected cash collections during August.
2. Figure the schedule for expected cash disbursements during August.
3. Figure the schedule for expected cash balance on August 31.
Purchase this Solution
Solution Summary
The solution explains how to prepare a schedule for expected cash collections and a schedule for expected cash disbursements and determine the ending cash balance.
Purchase this Solution
Free BrainMass Quizzes
Motivation
This tests some key elements of major motivation theories.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.