Wages are 28 of sales and are paid currently Annual general and administrative

Wages are 28 of sales and are paid currently annual

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· Wages are 28% of sales and are paid currently. · Annual general and administrative costs are $1,411,200 and are incurred evenly throughout the year. · Annual property taxes are $14,000 and are paid semi annually in June and October. · A $10,000 cash capital purchase will be made in April.
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The Brokman Company Cash Buget April May Jun Quarter Opening Bank Balance $ 47,000 $ 45,000 $ 45,000 $ 47,000 Receipts Cash Sales $ 170,000 $ 166,000 $ 150,000 $ 486,000 Cash receipts from accounts receivable $ 593,000 $ 657,000 $ 662,000 $ 1,912,000 Other (Loan) $ 46,640 $ 46,640 Total receipts $ 809,640 $ 823,000 $ 812,000 $ 2,444,640 Cash available $ 856,640 $ 868,000 $ 857,000 $ 2,491,640 Payments $ 367,200 $ 358,560 $ 324,000 $ 1,049,760 Payments to creditors $ 78,840 $ 91,800 $ 89,640 $ 260,280 Salaries and wages $ 238,000 $ 232,400 $ 210,000 $ 680,400 Interest payments $ 389 $ 203 $ 591 Operating expenses $ 117,600 $ 117,600 $ 117,600 $ 352,800 Taxes $ 7,000 $ 7,000 Loan repeiments $ 22,251 $ 24,305 $ 46,556 Capital purchases $ 10,000 $ 10,000 Total payments $ 811,640 $ 823,000 $ 772,748 $ 2,407,388 Surplus/Deficit closing balance $ 45,000 $ 45,000 $ 84,252 $ 84,252 Credit - 0.0 0.0 Loan Debit Credit Balance April $ 46,640 -$ 46,640 May $ 22,335 -$ 24,305 June $ 24,305 $ - The beginning cash balance in April is expected to be $47,000. The Brokman Company has a policy of maintaining a minimum cash balance of $45,000. The company has an arrangement with a local bank for a line of credit that carries a 10% annual interest rate. If the ending monthly balance falls below $45,000, the company will borrow against the line of credit so that the minimum balance can be maintained. If the company has borrowed against the line of credit and a cash balance is expected to be above $45,000 at the end of a particular month, then repayments will be made bringing the cash balance down to $45,000. Interest on the line of credit is paid monthly. Assume that all line of credit transactions occur on the last day of the month.
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May June July 830,000 750,000 900,000 rmation is available:
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  • '16
  • dsa
  • invoice, Accounting software, Brokman Company

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