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

Solution PreviewSolution Preview

This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.

Cash Budget
Opening Cash Balance 736
Sales Cash 15900
Collection 35360
Late Fees 173,4
Total Receipt 51433,4
Cash Disbursements
Purchases 35276,8...
$15.00 for this solution

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

Find A Tutor

View available Accounting Tutors

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.

Upload a file
Continue without uploading

We couldn't find that subject.
Please select the best match from the list below.

We'll send you an email right away. If it's not in your inbox, check your spam folder.

  • 1
  • 2
  • 3
Live Chats