Chapter 04 Cash Budget Basics.pdf - Student Madelyn...

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2/8/2019 Chapter 04 Homework-Madelyn Stephens 1/2 Student: Madelyn Stephens Date: 2/8/19 Instructor: George Bernard Course: FIN 3403 - FULL TERM - SPRING 2019 Assignment: Chapter 04 Homework Cash budget Basic Grenoble Enterprises had sales of in March and in April. Forecast sales for May, June, and July are , , and , respectively. The firm has a cash balance of on May 1 and wishes to maintain a minimum cash balance of . Given the following data, prepare and interpret a cash budget for the months of May, June, and July. $53,000 $59,000 $71,000 $78,000 $103,000 $5,600 $5,600 (1) The firm makes of sales for cash, are collected in the next month, and the remaining are collected in the second month following sale. 30% 65% 5% (2) The firm receives other income of per month. $2,100 (3) The firm's actual or expected purchases, all made for cash, are , , and for the months of May through July, respectively. $52,000 $73,000 $81,000 (4) Rent is per month. $3,200 (5) Wages and salaries are of the previous month's sales. 15% (6) Cash dividends of will be paid in June. $3,800
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