Cash Budget Patrick's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows: Month Sales Revenue Month Sales Revenue January February $350,000 March 300,000 April $250,000 200,000 All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 80 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $52,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $35,000. Prepare monthly cash budgets for February, March, and April. Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers. Patrick's Retail Company Cash Budgets February, March, and April Cash balance, beginning $ February March April 0 x $ 0 * $ 0 x Total Cash receipts 0x 0 x 0 x Cash available 0 * 0 x 0 x Total disbursements * 0 x 0 * Cash balance, ending $ * $ * $ x

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter8: Budgeting
Section: Chapter Questions
Problem 5PA: Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash...
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Cash Budget
Patrick's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows:
Month Sales Revenue Month Sales Revenue
January
February
$350,000 March
300,000 April
$250,000
200,000
All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 80 percent of sales. Payments for merchandise sold are made
in the month following the month of sale. Operating expenses total $52,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $35,000.
Prepare monthly cash budgets for February, March, and April.
Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers.
Patrick's Retail Company
Cash Budgets
February, March, and April
Cash balance, beginning $
February
March
April
0 x $
0 * $
0 x
Total Cash receipts
0x
0 x
0 x
Cash available
0 *
0 x
0 x
Total disbursements
*
0 x
0 *
Cash balance, ending
$
* $
* $
x
Transcribed Image Text:Cash Budget Patrick's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows: Month Sales Revenue Month Sales Revenue January February $350,000 March 300,000 April $250,000 200,000 All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 80 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $52,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $35,000. Prepare monthly cash budgets for February, March, and April. Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers. Patrick's Retail Company Cash Budgets February, March, and April Cash balance, beginning $ February March April 0 x $ 0 * $ 0 x Total Cash receipts 0x 0 x 0 x Cash available 0 * 0 x 0 x Total disbursements * 0 x 0 * Cash balance, ending $ * $ * $ x
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