11. Calculating the Cash Budget Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. LO 3 April May June $598,000 282,000 $689,000 $751,000 Credit sales 302,000 338,000 Credit purchases Cash disbursements 137,000 129,000 179,000 Wages, taxes, and expenses 15,600 15,600 15,600 Interest 53,500 6,600 248,000 Equipment purchases 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 re- maining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, com- plete the following cash budget: April May June $182,000 Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases 289,000 Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance
11. Calculating the Cash Budget Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. LO 3 April May June $598,000 282,000 $689,000 $751,000 Credit sales 302,000 338,000 Credit purchases Cash disbursements 137,000 129,000 179,000 Wages, taxes, and expenses 15,600 15,600 15,600 Interest 53,500 6,600 248,000 Equipment purchases 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 re- maining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, com- plete the following cash budget: April May June $182,000 Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases 289,000 Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:11. Calculating the Cash Budget Here are some important figures from the
budget of Crenshaw, Inc., for the second quarter of 2019.
LO 3
April
May
June
$598,000
282,000
$689,000
$751,000
Credit sales
302,000
338,000
Credit purchases
Cash disbursements
137,000
129,000
179,000
Wages, taxes, and expenses
15,600
15,600
15,600
Interest
53,500
6,600
248,000
Equipment purchases
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 re-
maining 60 percent will be collected in the following month. Credit purchases
will be paid in the month following the purchase.
In March 2019, credit sales were $561,000. Using this information, com-
plete the following cash budget:
April
May
June
$182,000
Beginning cash balance
Cash receipts
Cash collections from credit sales
Total cash available
Cash disbursements
Purchases
289,000
Wages, taxes, and expenses
Interest
Equipment purchases
Total cash disbursements
Ending cash balance
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