Grahm Potato company has a projected sales of $13,200 in September, $16,000 in October, $23,200 in November, and $19,200 in December. Of the company's sales, 25 percent are paod for by cash and 75 percent are sold on credit. Expereice shows that 40 percent of accounts recievable are paid in the month after the sale, while the remaining 60 percent are paod two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $19,500 and $12,000, respectively. The beginning cashbalance in November is $5,000, which is the desired minimum balance.a. Prepare a cash receipts schedule for November and December.SalesCredit salesCash salesOne month after saleTwo months after saleTotal cash receiptsGraham Potato CompanyCash Receipts ScheduleSeptemberOctoberGraham Potato CompanyCash BudgetTotal cash receiptsTotal cash paymentsNet cash flowBeginning cash balanceCumulative cash balanceMonthly borrowing (repayment)Ending cash balanceCumulative loan balanceb. Prepare a cash budget with borrowing needed or repayments for November and December.Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave nocells blank be certain to enter O wherever required.NovemberNovemberDecemberDecember

It's important to note that creating a budget is not a single-time work, but rather an ongoing…

Answered: Also assume Graham's cash payments for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Grahm Potato company has a projected sales of $13,200 in September, $16,000 in October, $23,200 in November, and $19,200 in December. Of the company's sales, 25 percent are paod for by cash and 75 percent are sold on credit. Expereice shows that 40 percent of accounts recievable are paid in the month after the sale, while the remaining 60 percent are paod two months after. Determine collections for November and December.

Also assume Graham's cash payments for November and December are $19,500 and $12,000, respectively. The beginning cash
balance in November is $5,000, which is the desired minimum balance.
a. Prepare a cash receipts schedule for November and December.
Sales
Credit sales
Cash sales
One month after sale
Two months after sale
Total cash receipts
Graham Potato Company
Cash Receipts Schedule
September
October
Graham Potato Company
Cash Budget
Total cash receipts
Total cash payments
Net cash flow
Beginning cash balance
Cumulative cash balance
Monthly borrowing (repayment)
Ending cash balance
Cumulative loan balance
b. Prepare a cash budget with borrowing needed or repayments for November and December.
Note: Negative amounts should be indicated by a minus sign. Assume the November beginning loan balance is $0. Leave no
cells blank be certain to enter O wherever required.
November
November
December
December

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