E9-28 - E9-28 Peruvian Tea Company Cash Budgets July –...

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Unformatted text preview: E9-28 Peruvian Tea Company Cash Budgets July – December July August Sept. Oct. Nov. Dec. Cash balance, Beginning $145,000 $142,000 $141,000 $148,000 $159,000 $168,000 Cash receipts: 75% of current month's sales $ 60,000 $ 45,000 $ 60,000 $ 75,000 $ 75,000 $ 82,5000 20% of previous month's sales 28,000 16,000 12,000 16,000 20,000 20,000 5% of sales two months prior 6,000 7,000 4,000 3,000 4,000 5,000 Total receipts 94,000 68,000 76,000 94,000 99,000 107,500 Cash available 239,000 210,000 217,000 242,000 258,000 275,500 Cash disbursements: Purchases (see Schedule A) 77,000 73,500 Operating costs 20,000 20,000 Total disbursements (97,000) (93,500) Cash balance, ending $142,000 $182,000 49,000 20,000 49,000 20,000 63,000 20,000 70,000 20,000 (69,000) $141,000 (69,000) $148,000 (83,000) $159,000 (90,000) $168,000 Schedule A: Purchases Budget June July August September October Nov. Inventory required, current sales* $ 98,000 $56,000 $42,000 $56,000 $ 70,000 $ 70,000 Desired ending inventory** 28,000 21,000 28,000 35,000 35,000 38,500 Total inventory needs 126,000 77,000 70,000 91,000 105,000 108,500 Less beginning inventory*** (35,000) Purchases**** $ 73,500 ( 49,000) $ 77,000 (28,000) $49,000 (21,000) $49,000 (28,000) $63,000 (35,000) $ 70,000 *70 % of sales revenue **50 % of following month's sales; $80,000 × 0.7 × 0.5 for June ***Half of current sales total that was bought last month; $98,000 × 0.50 ****All purchases are paid for in the month after purchase. * ...
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E9-28 - E9-28 Peruvian Tea Company Cash Budgets July –...

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