Accounts

10/24/2019 Assignment Print View

https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=1.&postSubmissionView=13252711036485136&wid=1325271176… 1/2

1. Award: 10.00 points    

The following information is from Tejas WindowTint’s financial records.

Month Sales Purchases April $76,000 $47,000 May 74,000 57,000 June 70,000 45,000 July 77,000 63,000

Collections from customers are normally 70 percent in the month of sale, 16 percent in the month following the sale, and 12 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 5 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $65,000, and sales for August are forecasted at $71,000. Cash disbursements for expenses are expected to be $14,800 for the month of August. The company’s cash balance on August 1 was $30,000. Required: 1. Prepare the expected cash collections during August. 2. Prepare the expected cash disbursements during August. 3. Calculate the expected cash balance on August 31.

 Required 2 Required 3 

Complete this question by entering your answers in the tabs below.

Calculate the expected cash balance on August 31.

Required 1 Required 2 Required 3

TEJAS WINDOW TINT Expected Cash Balance

August 31 Balance, August 1

Expected balance

References

Worksheet Learning Objective: 09-03 Describe the similarities and differences in the operational budgets prepared by manufacturers, service- industry firms, merchandisers, and nonprofit organizations.

10/24/2019 Assignment Print View

https://ezto.mheducation.com/hm.tpx?todo=c15SinglePrintView&singleQuestionNo=1.&postSubmissionView=13252711036485136&wid=1325271176… 2/2

Difficulty: 1 Easy Learning Objective: 09-05 Prepare each of the budget schedules that make up the master budget in a nonmanufacturing firm, and that exist in manufacturing budgets as well.