Exercise 14-13 a. Cash Budget July August September Section 1: Cash receipts Beg
ID: 2467000 • Letter: E
Question
Exercise 14-13
a.
Cash Budget
July
August
September
Section 1: Cash receipts
Beginning cash balance
$ 50,000
Add cash receipts
180,000
200,000
240,600
Total cash available (a)
230,000
Sections 2: Cash Payments
For inventory purchases
165,500
140,230
174,152
For S&A expenses
54,500
60,560
61,432
For interest exp at 1% per month
0
Total budgeted disbursements (b)
220,000
Sections 3: Financing Activities
Cash surplus (shortage) (a – b=c)
10,000
Borrowing (repayment) (d–c)
10,000
Ending cash balance (d)
$ 20,000
$ 20,000
$ 20,000
Cash Budget
July
August
September
Section 1: Cash receipts
Beginning cash balance
$ 50,000
Add cash receipts
180,000
200,000
240,600
Total cash available (a)
230,000
Sections 2: Cash Payments
For inventory purchases
165,500
140,230
174,152
For S&A expenses
54,500
60,560
61,432
For interest exp at 1% per month
0
Total budgeted disbursements (b)
220,000
Sections 3: Financing Activities
Cash surplus (shortage) (a – b=c)
10,000
Borrowing (repayment) (d–c)
10,000
Ending cash balance (d)
$ 20,000
$ 20,000
$ 20,000
Explanation / Answer
Cash Budget July August September Section 1: Cash Receipts Beginning Cash Balance 50000 20000 20000 Add Cash Receipts 180000 200000 240600 Total Cash Available (a) 230000 220000 260600 Section 2: Cash Payments For Inventory purchases 165500 140230 174152 For S & A Expenses 54500 60560 61432 For Interest Expense 0 100 109 (10000+890)*1% Total Budgeted disbursements 220000 200890 235693 Section 3: Financing activities Surplus (Shortage) 10000 19110 24907 Borrowing ( repayments) 10000 890 -4907 Ending Cash Balance 20000 20000 20000
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