Question

Prepare cash budget for month of June include supporting schedule for cash collections and cash payments

A. Cash balance on June 1 is 736
B. Actual sales for April: cash sales- 10000 credit sales - 28900
                           May: cash sales - 18000 credit sales - 35000
C. Credit sales collected over 3 month period. 40% in first month of sale, 30% in second month, 20% in third month. The sales collected in third month are subject to a 2% late fee, which is paid for by those customers in addition to what they owe. The remaining sales are uncollected.
D. Inventory is 64% of months total sales. Of those purchases, 20% are paid in month of purchase and 80% paid for in following month.
E. Salaries and wages total 11750 per month, including a 4500 salary paid to the owner.
F. Rent is 4100 per month
G. Taxes to be paid in June are 67800

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Cash Budget
June
Opening Cash Balance 736
Sales Cash 15900
Collection 35360
Late Fees 173,4
Total Receipt 51433,4
Cash Disbursements
Purchases 35276,8...

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