Worldwide company has forecast sales revenues and purchases for the last 5 month

Question

Worldwide company has forecast sales revenues and purchases for the last 5 months of 20xx to be As follows: August sales 25,000 purchases 17,000 September 15,000 purchase 19,500 October sales 25,000 purchases 29,000 November sales 30,000 purchases 20,000 December sales 26,000 purchases 24,000
Sixty five percent of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sales and the remainder are collected two months after the sale. Purchases are paid 30 days after the are incurred. The firm had a cash balance of $5000 as of September 30, and its minimum required cash balance is 4,000. It had no beginning loan balance. Prepare a cash budget for October November and December Worldwide company has forecast sales revenues and purchases for the last 5 months of 20xx to be As follows: August sales 25,000 purchases 17,000 September 15,000 purchase 19,500 October sales 25,000 purchases 29,000 November sales 30,000 purchases 20,000 December sales 26,000 purchases 24,000
Sixty five percent of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sales and the remainder are collected two months after the sale. Purchases are paid 30 days after the are incurred. The firm had a cash balance of $5000 as of September 30, and its minimum required cash balance is 4,000. It had no beginning loan balance. Prepare a cash budget for October November and December August sales 25,000 purchases 17,000 September 15,000 purchase 19,500 October sales 25,000 purchases 29,000 November sales 30,000 purchases 20,000 December sales 26,000 purchases 24,000
Sixty five percent of sales are on credit. On the basis of past experience, 50% of the accounts receivable are collected the month after the sales and the remainder are collected two months after the sale. Purchases are paid 30 days after the are incurred. The firm had a cash balance of $5000 as of September 30, and its minimum required cash balance is 4,000. It had no beginning loan balance. Prepare a cash budget for October November and December

Explanation / Answer

August September October November December Sales 25000 15000 25000 30000 26000 Purchase 17000 19500 29000 20000 24000 Cash Sales 8750 5250 8750 10500 9100 Credit Sales@65% 16250 9750 16250 19500 16900 Beginning Cash 5000 13750 10125 12375 6875 Collections: Cash Sales 8750 5250 8750 10500 9100 50% of Credit sales in the same month 8125 4875 8125 9750 50% of Credit sales collected after 2 months 8125 4875 8125 Total Collection 8750 13375 21750 23500 26975 Cash Payment against Purchase (30days credit) 17000 19500 29000 20000 Ending Cash Balance 13750 10125 12375 6875 13850

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