a) Prepare a schedule of cash receipts for March, April, May, June, July and August 70 percent of the firm's sales are on credit. Past experience shows that 45 percent of accounts receivable are collected in the month after sale, and the remainder are collected in the second month after sale. Eddie's pays its payments in the following month Eddie's had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1 b) Prepare a cash budget for March, April, May, June, July and August
a) Prepare a schedule of cash receipts for March, April, May, June, July and August 70 percent of the firm's sales are on credit. Past experience shows that 45 percent of accounts receivable are collected in the month after sale, and the remainder are collected in the second month after sale. Eddie's pays its payments in the following month Eddie's had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1 b) Prepare a cash budget for March, April, May, June, July and August
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please dont give solutions in an image thnx
Transcribed Image Text:1) Eddie's Bar and Restaurant Supplies expects its revenues and payments for the first part of the year:
Sales
$9.000
10.000
14.000
22.000
PO
Jan.
Feb.
Mar
April,
May
June
July
August
23.000
18.000
12.000
10.000
Purchases
$22.000
23.000
21.900
20.700
14.700
13.500
12.320
11.500
Transcribed Image Text:a) Prepare a schedule of cash receipts for March, April, May, June, July and August
70 percent of the firm's sales are on credit.
Past experience shows that 45 percent of accounts receivable are collected in the month after sale, and the remainder are collected in the second month
after sale.
Eddie's pays its payments in the following month
Eddie's had a cash balance of $2,000 on March 1, which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1
b) Prepare a cash budget for March, April, May, June, July and August
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