Ch 9 Cash Budget Solutions

Ch 9 Cash Budget Solutions - $101,400 July cash payments...

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Chapter 9 Cash Budget Review Exercise Uncollectible sales for May =  $2,100  May Credit Sales = $60,000 x70% =  $42,000 $42,000 x 5% uncollectible = $2,100 Cash sales for July =  $24,000  July Sales $80,000 x 30% = $24,000 Cash receipts from accounts receivable in July = $50,400  Total Sales Credit Sales 70%     July Collections July  $80,000   $56,000  60% $33,600  Jun  $75,000   $52,500  20% $10,500  May  $60,000   $42,000  15% $6,300  $50,400  Total cash available in July = $101,400  Beg Balance  $27,000  July Cash Sales  $24,000   July Collections Credit Sales   $50,400 
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Unformatted text preview: $101,400 July cash payments for direct material purchases = $15,500 Total Sales July Payments July $80,000 $16,000 50% $8,000 Jun $75,000 $15,000 50% $7,500 $15,500 Total disbursements for July = $53,600.00 Direct Materials $15,500 Wages $20,000 Overhead less depreciation $13,000 Equipment $4,000 Dividend $1,100 $53,600 Anticipated cash balance on July 31 = Cash Available $101,400 Cash Disbursements or Needs $53,600 Cash Balance $47,800 Total Purchases 20% of Sales...
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