The following information pertains to Amigo Corporation: Month Sales Purchases J
ID: 2564886 • Letter: T
Question
The following information pertains to Amigo Corporation:
Month Sales Purchases
July $30,000 $10,000
August 34,000 12,000
September 38,000 14,000
October 42,000 16,000
November 48,000 18,000
December 60,000 20,000
Cash is collected from customers in the following manner:
Month of sale (2% cash discount) 30%
Month following sale 50%
Two months following sale 15%
Amount uncollectible 5%
40% of purchases are paid for in cash in the month of purchase, and the balance is paid the following month.
Required: Complete the cash budget for the 4th quarter
October November December
Beginning Balance: $10,000
Cash Collections from:
August
September
October
November
December
Total Cash Collections A) B) C)
Cash Payments from:
September
October
November
December
Total Cash Payments D) E) F)
Change in Cash G) H) I)
Ending Cash Balance J) K) L)
HTML EditorKeyboard Shortcuts
Explanation / Answer
AMIGO CORPORATION Cash Budget For Quarter 4 October November December Beginning Balance $ 10000 31060 54400 Cash Collections from: August 5100 September 19000 5700 October 11760 21000 6300 November 13440 24000 December 16800 Total cash collections 35860 40140 47100 Cash Payments from: September 8400 October 6400 9600 November 7200 10800 December 8000 Total cash payments 14800 16800 18800 Change in Cash 21060 23340 28300 Ending cash balance $ 31060 54400 82700
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.