7-35 Cash Budget Consider the budgeted income statement for Carlson Company for June 20X4 in Exhibit 7-13. The cash balance, May 31, 20X4, is $15,000. Sales proceeds are collected as follows: 80% the month of sale, 10% the second month, and 10% the third month. Accounts receivable are $44,000 on May 31, 20X4, consisting of $20,000 from April sales and $24,000 from May sales. Accounts payable on May 31, 20X4, are $145,000. Carlson Company pays 25% of purchases during the month of purchase and the remainder during the following month. All operating expenses requiring cash are paid during the month of recognition, except that insur- ance and property taxes are paid annually in December for the forthcoming year. Prepare a cash budget for June. Confine your analysis to the given data. Ignore income taxes.
7-35 Cash Budget Consider the budgeted income statement for Carlson Company for June 20X4 in Exhibit 7-13. The cash balance, May 31, 20X4, is $15,000. Sales proceeds are collected as follows: 80% the month of sale, 10% the second month, and 10% the third month. Accounts receivable are $44,000 on May 31, 20X4, consisting of $20,000 from April sales and $24,000 from May sales. Accounts payable on May 31, 20X4, are $145,000. Carlson Company pays 25% of purchases during the month of purchase and the remainder during the following month. All operating expenses requiring cash are paid during the month of recognition, except that insur- ance and property taxes are paid annually in December for the forthcoming year. Prepare a cash budget for June. Confine your analysis to the given data. Ignore income taxes.
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:7-35 Cash Budget
Consider the budgeted income statement for Carlson Company for June 20X4 in Exhibit 7-13.
The cash balance, May 31, 20X4, is $15,000.
Sales proceeds are collected as follows: 80% the month of sale, 10% the second month, and 10%
the third month.
Accounts receivable are $44,000 on May 31, 20X4, consisting of $20,000 from April sales and
$24,000 from May sales.
Accounts payable on May 31, 20X4, are $145,000.
Carlson Company pays 25% of purchases during the month of purchase and the remainder during
the following month.
All operating expenses requiring cash are paid during the month of recognition, except that insur-
ance and property taxes are paid annually in December for the forthcoming year.
Prepare a cash budget for June. Confine your analysis to the given data. Ignore income taxes.
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