Exercise 23-12 Budgeted cash receipts L.O. P1 Emily Company has sales on account

ID: 2370793 • Letter: E

Question

Exercise 23-12 Budgeted cash receipts L.O. P1

Emily Company has sales on account and for cash. Specifically, 56% of its sales are on account and 44% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of Accounts Receivable is $299,900 on April 1.

Prepare a schedule of budgeted cash receipts for April, May, and June. (Input all amounts as positive values. Omit the "$" sign in your response.)

Fabrice Corp. requires a minimum $6,700 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on October 1 is $6,700 and the company has an outstanding loan of $2,700. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow.

Prepare a cash budget for October, November, and December. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Problem 23-1A Preparation and analysis of merchandise purchases budgets L.O. C2, P1

Pinsetter

Explanation / Answer

EMILY, INC.

Cash Receipts Budget

For April, May, and June

April

May

June

Sales.......................................................

$525,000

$535,000

$560,000

Less ending accts. receivable (44%)......

231,000

235,400

246,400

Cash receipts from

Cash sales (56% of sales) ......................

294,000

299,600

313,600

Collections of prior month