Reference no: EM131857910
Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2015:
April:
Credit Sales = $374,400
Credit Purchases = $148,900
Cash Disbursements
Wages, taxes, expenses = $54,340
Interest = $12,580
Equipment Purchases = $88,800
May:
Credit Sales = $349,500
Credit Purchases = $ 169,300
Cash Disbursements
Wages, taxes, expenses = $70,300
Interest = $12,580
Equipment Purchases = $135,000
June:
Credit Sales = $420,500
Credit Purchases = $200,300
Cash Disbursements
Wages, taxes, expenses = $75,170
Interest = $12,580
Equipment Purchases = $0
The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.
In March 2015, credit sales were $235,000 and credit purchases were $161,300. Using this information, complete the following cash budget:
April:
Beginning Cash Balance = $135,000
Cash Reciepts
Cash Collections from Credit Sales =
Total Cash Available =
Cash Disbursements
Purchases =
Wages, taxes, equipment =
Interest =
Equipment Purchases =
Total Cash Disbursements
Ending Cash Balance =
May:
Beginning Cash Balance =
Cash Reciepts
Cash Collections from Credit Sales =
Total Cash Available =
Cash Disbursements
Purchases =
Wages, taxes, equipment =
Interest =
Equipment Purchases =
Total Cash Disbursements
Ending Cash Balance =
June:
Beginning Cash Balance =
Cash Reciepts
Cash Collections from Credit Sales =
Total Cash Available =
Cash Disbursements
Purchases =
Wages, taxes, equipment =
Interest =
Equipment Purchases =
Total Cash Disbursements
Ending Cash Balance =
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