Hunter\'s Restaurant Supply is preparing its cash budgets for the first two mont

Question

Hunter's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the company's upcoming cash receipts and cash disbursements: (Click the ioon to view the information.) Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments for purchases, and (c) budgeted cash payments for operating expenses. Show totals for each month and totals for January and February combined. 2. Prepare a combined cash budget. If no financing activity takes place, what is the budgeted cash balance on February 28? Requirement 1a. Prepare a schedule of budgeted cash collections for January and February. Show totals for each month and totals for January and February combined Hunter's Restaurant Supply Cash Collections Bud For the Months Ended January 31 and February 28 January Cash sales Collection on credit sales Total cash collections

Explanation / Answer

1a. Hunter's Restaurant Supply Cash Collections Budget For the Months Ended January 31 and February 28 January February Total Cash sales (65%) 39650 44850 84500 Collection on credit sales December sales 12985 12985 January sales 6405 14945 21350 February sales 7245 7245 Total cash collections 59040 67040 126080 1b. Hunter's Restaurant Supply Budgeted Cash Disbursements for Merchandise For the Months Ended January 31 and February 28 January February Total Payments for purchases of: December 16800 16800 January 7050 16450 23500 February 8250 8250 Total cash disbursements 23850 24700 48550 1c. Hunter's Restaurant Supply Budgeted Cash Disbursements for Operating Expenses For the Months Ended January 31 and February 28 January February Total Salaries 8500 9750 18250 Sales commissions 6840 7800 14640 Rent expense 2700 2700 5400 Total cash disbursements 18040 20250 38290 2 Hunter's Restaurant Supply Cash Budget For the Months Ended January 31 and February 28 January February Total Beginning cash balance $ 20000 24150 20000 Add collections from customers 59040 67040 126080 Total cash available 79040 91190 146080 Less cash disbursements: Merchandise purchases 23850 24700 48550 Operating expenses 18040 20250 38290 Income tax 13000 0 13000 Total cash disbursements 54890 44950 99840 Budgeted ending cash balance $ 24150 46240 46240

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