In: Finance
he Statement of Financial Position of Picture This, Inc., a distributor of photographic supplies, as of May 31 is given below:
PICTURE THIS, INC.
Statement of Financial Position
May 31
Assets
Cash 8,000
Accounts receivable 72,000
Inventory 30,000
Building 500,000
Total assets 610,000
Liabilities and Equity
Accounts payable, suppliers 90,000
Notes payable 15,000
Share capital, no par 420,000
Retained earnings 85,000
Total liabilities and equity 610,000
Picture This, Inc. has not budgeted previously, and for this reason it is limiting its master budget planning horizon to just one month ahead – namely, June. The company has assembled the following budgeted data relating to June:
Required:
Prepare a cash budget for June. Support your budget with schedules showing budgeted cash receipts from sales and budgeted cash payments for inventory purchases. Submit your answer in Excel or Word format.