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:

The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 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 $189,000 and credit purchases were $129,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

April May June   Credit sales $ 319,000 $ 299,000 $ 359,000   Credit purchases 127,000 150,000 175,000   Cash disbursements     Wages, taxes, and expenses 43,900 11,400 62,900     Interest 10,900 10,900 10,900     Equipment purchases 79,000 148,000 0

Explanation / Answer

March ($) April ($) May ($) June ($)   Credit sales 189,000 319,000 299,000 359,000   Credit purchases 129,000 127,000 150,000 175,000 Cash received from the sales 66,150 225,050 296,050 305,050 Cash paid for the purchases 129,000 127,000 150,000   Cash disbursements     Wages, taxes, and expenses 0 43,900 11,400 62,900     Interest 0 10,900 10,900 10,900     Equipment purchases 0 79,000 148,000 0 Cash in hand at the end of the month 66,150 28,400 27,150 108,400

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