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 2015: April May June Credit sales $314,000 $294,000 $354,000 Credit purchases Cash disbursements 122.000 145.000 170.000 Wages, taxes, and expenses 43.400 10.900 62.400 Interest 10.400 10.400 10.400 Equipment purchases 74.000 138.000 0 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 2015. credit sales were $184,000 and credit purchases were $124,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank -be certain to enter "0" wherever required.)

Explanation / Answer

Cash budget

Months Apr May Jun

Beginning cash balance 117000 92000 101000

Cash receipts :

Credit sales (this month) 125600 117600 141600

Remaining balance credit sales 101200 172700 161700

Total cash balance 343800 382300 404300

Cash disbursements:

Purchases 124000 122000 145000

wages,taxes&expenses 43400 10900 62400

Interest 10400 10400 10400

Equipment purchase 74000 138000 -

Ending cash balance 92000 101000 186500

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