eBook Calculator Print Item Cash Budget The owner of a building supply company h

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eBook Calculator Print Item Cash Budget The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following: a. Cash balance on June 1 is $1,386. b. Actual sales for April and May are as follows April May Cash sales Credit sales Total sales 28,900 $18,000 $38,900 $10,000 35,000 $53,000 c. Credit sales are collected over a 3-month pe od 40% in the month of sale, 30% d. Inventory purchases average 70% of a month's total sales. Of those e. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible customers in addition to purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month. f. Rent is $5,500 per month. g. Taxes to be paid in June are $6,780. The owner also tells you that he expects cash sales of s18,600 and credit company doesn't have access to short-term loans Required 1. Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round calculations and final nearest dolilar. Be sure to enter percentages as whole numbers sales of $$4,000 for June. No minimum cash balance is required. The owner of the Check My Work more Check My Work uses remaining Previous Next 3 50 PM

Explanation / Answer

1 Budgeted Cash receipt June Cash sales 18600 Collection for Accounts receivable Collection for April 5896 (28900*20%+5780*2%) Collection for May 10500 (35000*30%) Collection for june 21600 (54000*40%) Total collection 56596 2 Particulars April Accounts payable for may 29680 (53000*70%*80%) Payment for june 10164 (72600*70%*20%) Total payments 39844 3 Cash budget April Beginning cash balance 1,386 Add Cash collections 56596 Total collections 57,982 Less Cash disbursements Payment of material 39844 Salaries and wages expense 11750 Rent 5500 Taxes 6780 Total payments 63874 cash balance -5,892

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