. Prepare a monthly cash budget and supporting schedules for March, April, and M

Question

. Prepare a monthly cash budget and supporting schedules for March, April, and May. Input all amounts as positive values except overall cash decrease and deficiency which should be indicated with a minus sign. Assume 360 days per year for interest calculations.

Dash Shoes Inc. Cash Budget For the Three Months Ending May 31, 2012 March April May Estimated cash receipts from: Cash sales $ Correct 9 of Item 1 $ Correct 10 of Item 1 $ Correct 11 of Item 1 Collection of accounts receivable Correct 13 of Item 1 Correct 14 of Item 1 Correct 15 of Item 1 Dividends Correct 17 of Item 1 Total cash receipts $ Correct 19 of Item 1 $ Correct 20 of Item 1 $ Correct 21 of Item 1 Estimated cash payments for: Manufacturing costs $ Correct 24 of Item 1 $ Correct 25 of Item 1 $ Correct 26 of Item 1 Selling and administrative expenses Correct 28 of Item 1 Correct 29 of Item 1 Correct 30 of Item 1 Capital expenditures Correct 32 of Item 1 Other purposes: Note payable (including interest) Correct 35 of Item 1 Income tax Correct 37 of Item 1 Dividends Correct 39 of Item 1 Total cash payments $ Correct 41 of Item 1 $ Correct 42 of Item 1 $ Correct 43 of Item 1 Cash increase or (decrease) $ Correct 45 of Item 1 $ Correct 46 of Item 1 $ Correct 47 of Item 1 Cash balance at beginning of month Correct 49 of Item 1 Correct 50 of Item 1 Correct 51 of Item 1 Cash balance at end of month $ Correct 53 of Item 1 $ Correct 54 of Item 1 $ Correct 55 of Item 1 Minimum cash balance Correct 57 of Item 1 Correct 58 of Item 1 Correct 59 of Item 1 Excess or (deficiency) $ Correct 61 of Item 1 $ Correct 62 of Item 1 $

Explanation / Answer

Dash Shoes Inc.
Cash Budget
For the Three Months Ending May 31, 2012

March ..... ...... April ...... .....May
Estimated cash receipts from:
Cash sales (12%) .......... ....... ......... $15,120 ....... .$18,120 .......$24,000
Collection of accounts receivable ....106,400........ 110,528......124,080
Dividends ....... ........ .......... ........ .......... 3,800
Total cash receipts ....... ........ ....... ..$125,320 ........$128,648 ....$148,080
Estimated cash payments for:
Manufacturing costs ....... ........ ........ ...46,550....... .....53,200......60,950
Selling and administrative expenses ..37,000 ..... ........41,000 .......44,000
Capital expenditures ....... .......... ......... .......... ......... ........... ......... ....48,000
Other purposes:
Note payable (including interest) ....... ......... ......... ......... ........... ......65,160
Income tax ........ .......... .......... .......... .......... ......... ....... .18,000
Dividends ....... .......... ......... .......... ......... ........... ......... ........ ........ ..10,000
Total cash payments ........... .......... .....$83,550 ....... ..$112,200...$228,110
Cash increase or (decrease) ........ ......$41,770 ........ ....$16,448 ...($80,030)
Cash balance at beginning of month ....48,000 ......... ......89,770.....106,218
Cash balance at end of month ....... ......89,770 ......... ....106,218 .......26,188
Minimum cash balance .......... ....... ........37,000 ........ ......37,000 ...... .37,000
Excess or (deficiency) ........ .......... .......$52,770 ......... ...$69,218 ....$(10,812)



*March:
Jan ($101,000 x 40%) $40,400
Feb (110,000 x 60%) 66,000
Total $106,400

**April:
Feb (110,000 x 40%) $44,000
March (126,000 x 88% x 60%) 66,528
Total $110,528

***May:
March ($126,000 x 88% x 40%) $44,352
April ($151,000 x 88% x 40%) 79,728
Total 124,080

March:
Payment of A/P, beginning of month balance $10,000
Payment of current month's cost [(53,000 - 10,000) x 85%] $36,550
Total $46,550

April:
[53,000 - 10,000) x 15%] $6,450
[(65,000 - 10,000) x 85%] 46,750

May:
[(65,000 - 10,000) x 15%] $8,250
[(72,000 - 10,000) x 85%] 52,700
Total $60,950

Related Questions

Navigate

• Browse (All)
• Browse #
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.