Question

The following table lists data from the budget of Ritewell Publishers. Half the company’s sales are for cash on the nail; the other half are paid for with a one-month delay. The company pays all its credit purchases with a one-month delay. Credit purchases in January were $30, and total sales in January were $180. Assume all expenses, other than purchases, are cash transactions. February March April Total sales $200 $220 $180 Purchases of materials For cash 70 80 60 For credit 40 30 40 Other expenses 30 30 30 Taxes, interest, and dividends 10 10 10 Capital investment 100 0 0 Complete the cash budget in the following table. (Leave no cells blank - be certain to enter "0" wherever required. A negative answer should be indicated by a minus sign.) (Figures in $) February March April Sources of cash: Collections on cash sales Collections on accounts receivables Total sources of cash Uses of cash: Payments of accounts payable Cash purchases of materials Other expenses Taxes, interest, and dividends Capital expenditures Total uses of cash Net cash inflow Cash at start of period 100 Net cash inflow Cash at end of period Minimum operating cash balance 100 100 100 Cumulative short-term financing required

Answer 1

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