Here are some important figures from the budget of Nashville Nougats, Inc., for

Question

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2012:

The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2012, credit sales were $194,000 and credit purchases were $134,000. Using this information, complete the following cash budget:

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2012:

Explanation / Answer

=324000*40%

=129600

=304000*40%

=121600

=364000*40%

=145600

=194000*55%

=106700

=324000*55%

=178200

=304000*55%

=167200

PARTICULARS APRIL MAY JUNE Beginning cash balance 127000 89500 76000 Cash receipts

=324000*40%

=129600

=304000*40%

=121600

=364000*40%

=145600

Cash collections from credit sales

=194000*55%

=106700

=324000*55%

=178200

=304000*55%

=167200

Total cash available 363300 389300 388800 Cash disbursements Purchases 134000 132000 155000 Wages, taxes, and expenses 44400 11900 63400 Interest 11400 11400 11400 Equipment purchases 84000 158000 0 Total cash disbursements 273800 313300 229800 Ending cash balance 89500 76000 159000

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