the budget of Blocher, Inc
SuperClassHere are some important figures from the budget of Blocher, Inc., for the second quarter of 2013: |
April | May | June | ||||||||||
Credit sales | $ | 411,000 | $ | 360,000 | $ | 448,000 | ||||||
Credit purchases | 188,000 | 176,000 | 209,000 | |||||||||
Cash disbursements | ||||||||||||
Wages, taxes, and expenses | 80,600 | 76,100 | 104,800 | |||||||||
Interest | 10,300 | 10,300 | 10,300 | |||||||||
Equipment purchases | 37,500 | 10,000 | 156,000 | |||||||||
The company predicts that 5 percent of its credit sales will never be collected, 30 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2013, credit sales were $338,000. |
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Required: |
Using this information, complete the following cash budget: |
April | May | June | |
Beginning cash balance | $ 118,000 | $ | $ |
Cash receipts | |||
Cash collections from credit sales |
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Total cash available | $ | $ | $ |
Cash disbursements | |||
Purchases | $ 180,000 | $ | $ |
Wages, taxes, and expenses |
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Interest |
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Equipment purchases |
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Total cash disbursements | $ | $ | $ |
Ending cash balance | $ | $ | $ |
Please try to explain how you got to your entries. Thank you!
10 years ago
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the_budget_of_blocher_inc.docx
