Roger Wills & Company estimates the following for 2010 The ending cash balance f
ID: 2631434 • Letter: R
Question
Roger Wills & Company estimates the following for 2010
The ending cash balance for 2009 was $200,000.
Prepare a cash budget to determine the ending cash balance for 2010.
Sales (all on account)
$800,000
Collections of accounts receivable
700,000
Proceeds from bond issuance
500,000
Proceeds from sale of common stock
300,000
Merchandise bought on credit
650,000
Payments of accounts payable
500,000
Cash payments of expenses
70,000
Cash purchase of equipment
140,000
Depreciation of equipment
15,000
Payment on notes payable
30,000
Sales (all on account)
$800,000
Collections of accounts receivable
700,000
Proceeds from bond issuance
500,000
Proceeds from sale of common stock
300,000
Merchandise bought on credit
650,000
Payments of accounts payable
500,000
Cash payments of expenses
70,000
Cash purchase of equipment
140,000
Depreciation of equipment
15,000
Payment on notes payable
30,000
Explanation / Answer
Hi,
Please find the detailed answer as follows:
Answer is $960000
Thanks.
Cash Budget Opening Cash Balance 200000 Collection of Accounts Receivables 700000 Proceeds from Bond Issuance 500000 Proceeds from sale of common stock 300000 Total Cash Available 1700000 Cash Payments Payments of accounts payable 500000 Cash payments of expenses 70000 Cash purchase of equipment 140000 Payment on notes payable 30000 Total Cash Payments 740000 Net Cash Balance 960000Related Questions
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