Based on the following data, prepare a cash budget (in proper form with labels) for July...

Based on the following data, prepare a cash budget (in proper form with labels) for July and August.

Forecast sales

May $12,000

June $15,000

July $16,000

August $12,000

Cash sales are 30% of total sales. Credit sales are collected as follows: 60% one month after the sale and 40% 2 months after the sale

Accounts payable are paid 100% 2 months after the purchase

Expected A/P

May $4,500

June $6,500

July $7,000

August $8,000

In addition to purchases, there are utility bills of $1,500 each month and rent of $1,200 per month.

Beginning cash for July is $4,800

Solutions

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jeff jeffy answered 2 years ago

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