next three months follow 23,200 15,3e0 15,700 Sales are 75% cash and 25% on cred
ID: 2575494 • Letter: N
Question
next three months follow 23,200 15,3e0 15,700 Sales are 75% cash and 25% on credit. All credit sales are collected in the month following the sale. The March 31 balance sheet payable. A minimum cash balance of $13,500 is required. Loans are cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and include sales Prepare a cash budget for each ofthe months of April, May, and June. (Negative balances and Loan repayment amounts (if any) s of $13,500 in cash, $13,500 in a receivable, $11,000 in accounts payable, and a $3,500 balance in loans based on the s (5% of sales), shipping (3% of sales), office salaries ($4,500 per month), and rent ($6,500 per month). with minus sign. Round your final answers to the nearest whole dollar) CASTOR Cash Budget May Prex2 of 11 Next >Explanation / Answer
CASTOR, INC. Cash Budget For April, May, and June April May June Beginning cash balance $13,500 $13,500 $18,795 Cash Sales $22,875 $31,125 $19,125 Collections on Account $13,500 $7,625 $10,375 Total cash available $49,875 $52,250 $48,295 Cash disbursements: Payment For Merchandise $23,200 $15,300 $15,700 Sales commissions $1,525 $2,075 $1,275 Shipping $915 $1,245 $765 Office Salaries $4,500 $4,500 $4,500 Rent $6,500 $6,500 $6,500 Interest on bank loan $70 $0 Total cash disbursements $36,710 $29,620 $28,740 Preliminary cash balance $13,165 $22,630 $19,555 Additional loan (loan repayment) $335 -$3,835 $0 Ending cash balance $13,500 $18,795 $19,555 CASTOR, INC Cash Receipts Budget For April, May, and June April May June Sales $30,500 $41,500 $25,500 Less ending accts. receivable (25%) $7,625 $10,375 $6,375 Cash receipts from Cash sales (75% of sales) $22,875 $31,125 $19,125 Collections of prior month's receivables $13,500 $7,625 $10,375 Total cash receipts $36,375 $38,750 $29,500 Loan Balance April May June Loan balance Beginning of month 3500 3835 0 Additional loan (loan repayment) 335 -3835 0 Loan balance End of month 3835 0 0
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