FINMAN1%20QUIZ#3 2T SY10-119 SOLUTIONS TO PROBLEMS

FINMAN1%20QUIZ#3 2T SY10-119 SOLUTIONS TO PROBLEMS -...

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PROBLEMS 16 TO 19: DORIAN INDUSTRIES Cash Budget For the Six Months Ended June 30, 2011 Cash Receipts Jan Feb Mar Apr May Jun Sales 200,000 240,000 280,000 400,000 320,000 320,000 Cash Sales (25% of sales) 50,000 60,000 70,000 100,000 80,000 80,000 Collection of AR: One-month lag (50% of sales) - 100,000 120,000 140,000 200,000 160,000 Two-months lag (25% of sales) - - 50,000 60,000 70,000 100,000 Total Cash Receipts 50,000 160,000 240,000 300,000 350,000 340,000 (16) Cash Disbursements 180,000 210,000 300,000 240,000 240,000 - Payment of A/P: One-month lag (100% of purchases) 180,000 210,000 300,000 240,000 240,000 Other cash expenses 60,000 60,000 60,000 60,000 60,000 60,000 Total Cash Disbursements 60,000 240,000 270,000 360,000 300,000 300,000 (17) Cash Budget Cash Receipts 50,000 160,000 240,000 300,000 350,000.00 340,000.00 Less: Cash Disbursements 60,000 240,000 270,000 360,000 300,000.00 300,000.00 Net monthly change (10,000) (80,000) (30,000) (60,000) 50,000.00 40,000.00 Add: Beginning cash balance
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