Quillin company had the following budgeted information for october: 1. october 1

ID: 2372638 • Letter: Q

Question

Quillin company had the following budgeted information for october:

1. october 1 cash balance $3500

2. expected sales 2,500 units at $25 each (half in cash, remainder on credit due in november)

3. inventory purchases 3,000 units at $14 each (all in cash)

4. rent $1,450

5. payroll $1,000

6. utilities and other costs $4,500

7. SG&A $15,000 including $2,000 of depreciation

8. accounts receivable balance oct. 1 $35,000 (includeds $700 bad debts allowance)

Quillen Co. requires an ending cash balance of $10,000

Prepare a cash budget for october

Opening Balance of October : 3,500

Cash Sales :31,250

September Receivables :34,300(35,000-700)

Total :69,050

Less: Expenses

Purchases :42,000

Rent : 1,450

Payroll : 1,000

Utilities & Others : 4,500

SG & A : 13,000

Total :61,950

Surplus : 7,100 ( 69,050-61,950)

Balance to be maintained :10,000

Cash to be invested :2,900 (10,000-7,100)

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