tion for the quarter endi for Rocklin Company g September 30, 2014: in Company g
ID: 2523897 • Letter: T
Question
tion for the quarter endi for Rocklin Company g September 30, 2014: in Company gathered the following budget information Sales Purchases Salaries and wages Rent Supplies Insurance Other cash expenses $540,000 450,000 194,000 10,000 8,000 2,000 12,000 A cash balance of $36,000 is planned for July 1. Accounts receivable are expected to be $60 on July 1, All but one-half of 1% ofthe July 1 Accounts Receivable balance will be collected in the quarter ending September 30, The company's sales collection pattern is 95% in the quarter ofsale and 5% in the quarter after sale. Accounts payable will be $30,000 on July 1 and willbeExplanation / Answer
Rocklin Company
Cash Budget for the quarter ending September 30, 2014 –
Rocklin Company
Cash Budget
For the quarter ending September 30, 2014
Cash balance at the beginning of the quarter
$36,000
Planned cash receipts-
from -Sales
$513,000
from - Accounts Receivable
$59,700
Total cash receipts
$572,700
Available cash
$608,700
Planned cash disbursements -
Purchases
$337,500
Salaries and wages
$194,000
Rent
$10,000
Supplies
$8,000
Insurance
$2,000
Other cash expenses
$12,000
Accounts Payable
$30,000
Cash disbursements
($593,500)
Excess of cash available over disbursements
$15,200
Planned balance at the end of the quarter
$15,200
Notes:
Rocklin Company
Cash Budget
For the quarter ending September 30, 2014
Cash balance at the beginning of the quarter
$36,000
Planned cash receipts-
from -Sales
$513,000
from - Accounts Receivable
$59,700
Total cash receipts
$572,700
Available cash
$608,700
Planned cash disbursements -
Purchases
$337,500
Salaries and wages
$194,000
Rent
$10,000
Supplies
$8,000
Insurance
$2,000
Other cash expenses
$12,000
Accounts Payable
$30,000
Cash disbursements
($593,500)
Excess of cash available over disbursements
$15,200
Planned balance at the end of the quarter
$15,200
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