Question

THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 8 – 10.

Quiz Company provided the following information for the preparation of the cash budget for June.

The cash balance of June 1 is expected to be $3,763.

Projected sales are as follows.

                April       May       June

Cash sales           $10,000                 $18,000                 $18,600

Credit sales         28,900   35,000   54,000

Credit sales are collected over a three-month period: 40% in the month of sale, 30% in the first month after the sale, 20% in the second month after the sale. Sales collected in the second month after the sale second month after the sale are subject to a 2% late fee that customers pay in addition to the amount owed. The remaining sales are uncollectible.

Inventory purchases average 64% of a month’s total sales. Purchases are all on credit and are paid 20% in the month of purchase and 80% in the month following the purchase.

Salaries and wages are $11,750 per month and are all paid during the month.

Other cash expenditures during the month are expected to be $6,780.

(Round all calculations to the nearest dollar.)

Determine cash collections for June.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345                                            

                                               

•             Question 9

               

                THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 8 – 10.

Quiz Company provided the following information for the preparation of the cash budget for June.

The cash balance of June 1 is expected to be $3,763.

Projected sales are as follows.

                April       May       June

Cash sales           $10,000                 $18,000                 $18,600

Credit sales         28,900   35,000   54,000

Credit sales are collected over a three-month period: 40% in the month of sale, 30% in the first month after the sale, 20% in the second month after the sale. Sales collected in the second month after the sale second month after the sale are subject to a 2% late fee that customers pay in addition to the amount owed. The remaining sales are uncollectible.

Inventory purchases average 64% of a month’s total sales. Purchases are all on credit and are paid 20% in the month of purchase and 80% in the month following the purchase.

Salaries and wages are $11,750 per month and are all paid during the month.

Other cash expenditures during the month are expected to be $6,780.

(Round all calculations to the nearest dollar.)

Determine the total cash disbursements for June.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345                                            

                                               

•             Question 10

THE FOLLOWING INFORMATION IS USED FOR QUESTIONS 8 – 10.

Quiz Company provided the following information for the preparation of the cash budget for June.

The cash balance of June 1 is expected to be $3,763.

Projected sales are as follows.

                April       May       June

Cash sales           $10,000                 $18,000                 $18,600

Credit sales         28,900   35,000   54,000

Credit sales are collected over a three-month period: 40% in the month of sale, 30% in the first month after the sale, 20% in the second month after the sale. Sales collected in the second month after the sale second month after the sale are subject to a 2% late fee that customers pay in addition to the amount owed. The remaining sales are uncollectible.

Inventory purchases average 64% of a month’s total sales. Purchases are all on credit and are paid 20% in the month of purchase and 80% in the month following the purchase.

Salaries and wages are $11,750 per month and are all paid during the month.

Other cash expenditures during the month are expected to be $6,780.

(Round all calculations to the nearest dollar.)

Determine the ending cash balance for June.

Note: Give your answer using dollar signs and commas but no decimal points (cents).

Example: $12,345​

Answer 1