Chapter 8 Problem 8-17 Homework - MBA515 Unit 5 Homework...

This preview shows page 1 - 3 out of 3 pages.

MBA515Unit 5 Homework – Problem 8-17 1.Cash Budget for May - Accounts Receivable Calculation:$200,000 sales budget - $60,000 cash sales = $140,000$140,000 x 50% (1/2 credit sales collected in May) = $70,000 Accounts Receivable collected in MaySchedule Cash ReceiptMay Cash Sales$60,000 Collections on Accounts Receivable:April 30 Balance$54,000 May Cash Collected from Credit Sales$70,000 $124,000 Total Cash Receipts$184,000 Schedule Cash PaymentAccounts Payable April 30$63,000 May Purchase (120,000 x 40%)$48,000 Total Cash Payment$111,000 Minden CompanyCash BudgetFor the Month of MayBeginning Cash Balance$9,000 Add: Cash ReceiptsCollections From Customers (Total Cash Receipt)$184,000 Total Cash Available$193,000 Less: Cash DisbursementsPurchase of Inventory (Total Cash Payment)($111,000)Selling and Administrative($72,000)Equipment Purchase($6,500)Total Cash Disbursements($189,500)Excess of Cash Available Over Disbursements$3,500 Financing:Borrowings$20,000 Repayments($14,500)
Interest($100)Total Financing$5,400 Ending Cash Balance$8,900 2.Budgeted Income Statement for May – Calculation for COGS:Cost of Goods Sold = Beginning Inventory + Purchases – Ending InventoryCOGS = 30,000 + 120,000 – 40,000

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture