Calculate and fill in the 6 blanks in the following Cash Flow Budget. You do not need to show y work. Enter each answer as a whole number, without decimals, without dollar sign and without thousands comma (Ex: 1000). Cash Flow Budget Assumptions: Beginning balance is $20,000 Cost of goods sold is 80% of sales Building rent is $3,000 a month Accounts payable turnover ratio is 12 Accounts receivable ratio is 6 Inventory turnover ratio is 6 A quarter of sales are paid in cash Minimum cash balance is dever less than $5,000 Cash Flow Budget
Calculate and fill in the 6 blanks in the following Cash Flow Budget. You do not need to show y work. Enter each answer as a whole number, without decimals, without dollar sign and without thousands comma (Ex: 1000). Cash Flow Budget Assumptions: Beginning balance is $20,000 Cost of goods sold is 80% of sales Building rent is $3,000 a month Accounts payable turnover ratio is 12 Accounts receivable ratio is 6 Inventory turnover ratio is 6 A quarter of sales are paid in cash Minimum cash balance is dever less than $5,000 Cash Flow Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
DO NOT GIVE SOLUTION IN IMAGE FORMAT
Transcribed Image Text:ected
Sales
Cash Sales
Total Cash
Inflow
Collect
Accounts $6,000
Receivable
Beginning
Cash Balance
Total Cash
Inflow
Total Cash
Available
Total Cash
Outflow
Net Cash
Balance
$12,000
Ending Cash
Balance
$3,000
Cumulative
Borrowing
$9,000
$20,000
$9,000
$29,000
$15,000
Borrow/Repay $-
$14,000
$14,000
$-
$15,000
$7,500
$11,250
$14,000
$11,250
$25,250
$17,400
+A
$-
$7,850
$-
$18,000
$4,500
$13,500
$7,850
$13,500
$21,350
$19,000
$2,350
$2,650
$2,650
Transcribed Image Text:Calculate and fill in the 6 blanks in the following Cash Flow Budget. You do not need to show you
work. Enter each answer as a whole number, without decimals, without dollar sign and without
thousands comma (Ex: 1000).
Cash Flow Budget Assumptions:
Beginning balance is $20,000
Cost of goods sold is 80% of sales
Building rent is $3,000 a month
Accounts payable turnover ratio is 12
Accounts receivable ratio is 6
Inventory turnover ratio is 6
A quarter of sales are paid in cash
Minimum cash balance is dever less than $5,000
Cash Flow Budget
Projected
Sales
Purchases
Pay Accounts
Payable.
January
Total Cash
Outflow
$12,000
$12,000
Pay Overhead $3,000
$15,000
February
$15,000
$16,000
$14,400
$3,000
$17,400
March
$18,000
$13,600
$3,000
$19,000
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