Question
In: Accounting
Cash Budget Preparation PT ABC has sales 50,000 unit in March and 60,000 unit in April....
Cash Budget Preparation
PT ABC has sales 50,000 unit in March and 60,000 unit in April. Sales prediction for May, June and July are 70,000,80,000 and 100,000 unit. Cash balance on May 1, is USD 5,000 and minimum cash policy is USD 5,000. Based on the data for May, June, July are as follow:
a. Cash sales 20% on the month sales, 60% received next month and 20% the following (2months later)
b. Other revenues USD 21,000 every month
c. Pay full all purchases in May, June, July for the following USD 50,000. 70,000 dan 80,000.
d. Rent expenses USD 3,000 per month
e. Salary and wages expenses 10% from previous month
f. Paid Cash dividend USD 3,000 in June
g. Paid payable with total principal and interest in June USD 4,000
h. Cash payment paid in full amount USD 6,000 in July
i. Tax will be paid in June USD 6,000
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Cash budget—Basic Grenoble Enterprises had sales of $50,100 in March and $60,100 in April. Forecast sales...
Cash budget—Basic
Grenoble Enterprises had sales of $50,100 in March and $60,100
in April. Forecast sales for May, June, and July are $69,500,
$80,000, and $99,800,
respectively. The firm has a cash balance of $4,800 on May 1 and
wishes to maintain a minimum cash balance of $4,800. Given the
following data, prepare and interpret a cash budget for the months
of May, June, and July.
(1) The firm makes 24% of sales for cash, 62% are collected in
the...
Cash budget—Basic Grenoble Enterprises had sales of $50,100 in March and $60,100 in April. Forecast sales...
Cash budget—Basic
Grenoble Enterprises had sales of $50,100 in March and $60,100
in April. Forecast sales for May, June, and July are $69,500,
$80,000, and $99,800,
respectively. The firm has a cash balance of $4,800 on May 1 and
wishes to maintain a minimum cash balance of $4,800. Given the
following data, prepare and interpret a cash budget for the months
of May, June, and July.
(1) The firm makes 24% of sales for cash, 62% are collected in
the...
Cash budget—Basic Grenoble Enterprises had sales of $49,600 in March and $60,200in April. Forecast sales for...
Cash
budget—Basic
Grenoble Enterprises had sales of
$49,600 in March and
$60,200in April. Forecast sales for May, June, and July are
$69,800,$80,200,and
$ 99 comma 500$99,500,
respectively. The firm has a cash balance of
$ 4 comma 500$4,500
on May 1 and wishes to maintain a minimum cash balance of
$ 4 comma 500$4,500.
Given the following data, prepare and interpret a cash budget
for the months of May, June, and July.
(1) The firm makes
22 %22%
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Question 1: - Cash Budget:
Estimated sales
January
February
March
April
May
Total Coffee sales (units)
15,000
16,000
17,500
18,000
14,500
Your friend, MATT, has been running a successful coffee shop for
the last couple of years. He has asked you to put together a cash
budget. His regular accountant was too busy to help, but told MATT
his depreciation expense was going to be $1,800 per year, using the
straight-line method. He has supplied you with the following
information...
Cash Budget: Estimated sales January February March April May Total Coffee sales (units) 15,000 16,000 17,500...
Cash Budget:
Estimated sales
January
February
March
April
May
Total Coffee sales (units)
15,000
16,000
17,500
18,000
14,500
Your friend, Chris Coffee, has been running a successful coffee
shop for the last couple of years. He has asked you to put together
a cash budget. His regular accountant was too busy to help, but
told Chris his depreciation expense was going to be $1,800 per
year, using the straight-line method. He has supplied you with the
following information (above) to...
Below is the abbreviated cash budget for ABC Pty Ltd. Beginning Cash Balance 50,000 Estimated Cash...
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Beginning Cash Balance
50,000
Estimated Cash Receipts
Cash Available
390,000
Estimated Cash Payments
Purchases
210,000
Operating Expenses
Office Equipment Purchases
50,000
Total Estimated Cash Payments
Ending Cash Balance
40,000
(a) Calculate the amount of Estimated
Cash Receipts, Operating Expenses, and Total Estimated Cash
Payments.
(b) What action if any should ABC Pty
Ltd take as a result of preparing this budget? Briefly justify your
answer.
2. Webster Corporation is preparing its cash budget for April. The March 31 cash balance is...
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The March 31 cash balance is $36,500. Cash receipts are expected to
be $642,000 and cash payments for purchases are expected to be
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note. Webster's preliminary cash balance...
Titan manufactures and sells a product. It projects unit sales for Jan, Feb, March and April...
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Joshua Studios expects the following sales in March, April and May: Sales $ Purchases $ March...
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May: Sales $ Purchases $ March 240,000 180,000 April 250,000
210,000 May 300,000 225,000 The controller has determined that the
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what is the benefits of the preparation of cash budget for the management ?
what is the benefits of the preparation of cash budget for the
management ?
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