Grenoble enterprises had sales of $50,400 in March and $59,800 in April. Forecas
ID: 2753513 • Letter: G
Question
Grenoble enterprises had sales of $50,400 in March and $59,800 in April. Forecast sales for May-July are $70,300, $80,000, $100,400 respectively. The firm has a cash bal of $4,800 on May 1 and wishes to maintain cash bal of $4,800, Given the following data prepare and interpret a cash budget for the months of May, June and July.
1. the firm makes 21% of sales for cash, 61% are collected the next month and the remaining 18% are collected in the second month following sale
2. The firm receives other income of $2200 per month
3. The firm's actual or expected purchases, all made for cash are $49,800, $69,600, and $80,400 for the months May through July respectively.
4. Rent is $3,000 per month
5. Wages and salaries are 9% of the previous month's sales
6. Cash dividends of $2,800 will be paid in june
7.Payment of principal and interest of $3.500 is due in June.
8. A cash purchase of equiptment costing $5,600 is scheduled in July
9. Taxes of $6,300 are due in June.
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Complete the first month of the cash budget for Grenoble Enterprises below: (Round to the nearest dollar. Please input all the values in the table before checking your answers.)
(Round to the nearest dollar. Please input all the values in the table before checking your answers.)
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(Round to the nearest dollar. Please input all the values in the table before checking your answers.)
Complete the second month of the cash budget for Grenoble Enterprises below: (Round to the nearest dollar. Please input all the values in the table before checking your answers.)
March April May Sales $50,400 $59,800 $70,300 Cash sales 10,584 12,558 $? Lag 1 month $? Lag 2 months $? Other income $? Total cash receipts $?Explanation / Answer
Answer:
Cash Receipts Particulars March April May June July Sales 50400 59800 70300 80000 100400 Cash Sale (0.21) 10584 12558 14763 16800 21084 Collections: Lag 1 month (61%) 30744 36478 42883 48800 Lag 2 Month (18%) 9072 10764 12654 Other income 2200 2200 2200 2200 2200 Total cash receipts 12784 45502 62513 72647 84738Related Questions
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