Question

home / study / business / accounting / accounting questions and answers / 1. petite martinique ltd. had sales of 49,769 in march and 59,902 in april. forecast sales ... Your question has expired and been refunded. We were unable to find a Chegg Expert to answer your question. Question: 1. Petite Martinique Ltd. Had sales of 49,769 in March and 59,902 in April. Forecast sales for Ma... 1. Petite Martinique Ltd. Had sales of 49,769 in March and 59,902 in April. Forecast sales for May, June and July are 69,969, 84,513 and 99,931, respectively. The firm has a cash balance of $2,000 on May 1 and wishes to maintain a minimum cash balance of $5,000. Given the following data, prepare and interpret a cash budget for the months of May, June and July. 1) The firm makes 17% of sales for cash, 57% are collected in the next month, and the remaining 26% are collected in the second month following sale. 2) The firm receives other income of $2,000 per month 3) The firm’s actual or expected purchases, all made for cash, are 51,610, 69,949 and 89,662 for the months of May through July, respectively. 4) Rent is $2,700 per month 5) Wages and salaries are 8% of the previous month’s sales 6) Cash dividends of $3,200 will be paid in June. 7) Payment of principal and interest of $3,500 is due in June 8) A cash purchase of equipment costing $5,900 is scheduled in July. 9) Taxes of $6,400 are due in June.

Answer 1