PA8-3 Preparing Cash Budget [LO 8-4] Required: 1. Compute the budgeted cash rece

Question

PA8-3 Preparing Cash Budget [LO 8-4] Required: 1. Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.) April May June2nd Quarter Total Budgeted Cash Receipts 0.00 2. Compute the budgeted cash payments for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.) April May June2nd Quarter Total Budgeted Cash Pa 0.00 3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a S10,000 minimum cash balance. (Leave no cell blank enter "O" wherever required. Round your answers to 2 decimal places.) April May June 2nd Quarter Total Beginning Cash Balance Plus: Budgeted Cash Receipts Less: Budgeted Cash Payments Preliminary Cash Balance Cash Borrowed Repaid Ending Cash Balance 0.00 0.00

Explanation / Answer

Solution :

We shall answer the 1st question alone as per the protocol:

The explanation is provided in the excel itself under the formula column :

Particulars Formula March April May June July August Sales unit 360 420 470 570 545 595 Selling price 20 20 20 20 20 20 Total sales Saes unit *selling price 7200 8400 9400 11400 10900 11900 Cash in hand beginning 0 10800 19080 28380 39580 50530 Cash sales 5760 6720 7520 9120 8720 9520 Credit sale 50% same month Credit sale = (Total - cash sale)*50% 720 840 940 1140 1090 1190 Credit sale 50% next month 720 840 940 1140 1090 Closing cash balance Sum of all the cash receipts 10800 19080 28380 39580 50530 62330

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