Hw Ch 8 ole secure https://newconnectinheducationrummon/connecthnmi Chapter 8 6

Question

Hw Ch 8 ole secure https://newconnectinheducationrummon/connecthnmi Chapter 8 6 Help Save&Ext; Submi Check my work 2 You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment The followng information is available about the company's operations 10 points a The cash balance on December 1 is $40,000 b. Actual sales for October and November and expected sales for December are as folows $ 65,000 79,000 83,000 Cash sales Sales on account eBook Pint follows: 20% collected in the month or sole, 60% colected in the Sales on account are collected over a three-month period as h following sale, and 18% collected in the second month following sale The rernamng 2% suncollectee c. Purchases of inventory will total $280,000 for December. Thirty percent of a month's inventory month of purchase. The accounts payable remaining from Novemiber's paid in December nventory purchases total $161,000, all of which will be d. win be purchased for cash durina December, and dividends e. A new web server for the Marketing Department costing $76000 wll be purchased for cash during December

Explanation / Answer

Calculation of expected cash collection for December -

2. Calculation of Expected cash disbursement for merchandise purchse for december -

3. Cash budget for the month of December -

Note - Depriciation is a non cash item that's why deduct from selling and administrative expenses.

Please comment in case of any further clarification required/wrong answer.

Cash collection Dec(Amt. $) Cash sales(Given) 83000 Oct. sales (400000*18%) 72000 Nov. sales (525000*60%) 315000 Dec. sales (600000*20%) 120000 Total Cash collection 590000

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

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