Reference no: EM132887055

Question - You have the following income statement for a restaurant for the month of June.

Sales Revenue $235460

Cost of Sales 37% of Sales

Wages Expense 24% of Sales

Operating Expenses $17,000

Rent Expense $ 7,500

Depreciation Expense $ 8,500

Operating Income $

Additional Information

Actual sales revenue in May was $108,000.

Actual purchases (cost of sales) in May was $69,000.

Sales revenue is 25% cash.

Credit card sales revenue is 75% of total sales, of which 98% is collected in the month of sales, 2% is collected in the following month.

40% of inventory purchases are paid in the month of purchase, the remaining 60% is paid in the following month

Wages and operating expenses included in the income statement are paid in cash in June

Cash balance at the end of May was 4570

Required - Calculate the actual cash balance at the end of June by preparing a cash budget.