CBC company has provided the following estimates for the month of July 2021: The cash balance first January 2021$8,600Credit sales 68,400Receipts from debtors 62,000Wages incurred (90% paid) 42,000Office furniture purchased in cash9,500Purchase of office computer on credit 2,000Utilities expenses paid 3,800Accounts payable500Administrative expenses paid 29,000Depreciation on office furniture 8,200Received of loan 15,000Credit purchase 59,200Payments to creditors 48,600Cash sales 42,000 Required: Prepare a cash budget for the month of Jul

Budget means the expected value of future. Budget is not affected by the actual value as it is…

Answered: CBC company has provided the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

CBC company has provided the following estimates for the month of July 2021:

The cash balance first January 2021	$8,600
Credit sales	68,400
Receipts from debtors	62,000
Wages incurred (90% paid)	42,000
Office furniture purchased in cash	9,500
Purchase of office computer on credit	2,000
Utilities expenses paid	3,800
Accounts payable	500
Administrative expenses paid	29,000
Depreciation on office furniture	8,200
Received of loan	15,000
Credit purchase	59,200
Payments to creditors	48,600
Cash sales	42,000

Required: Prepare a cash budget for the month of Jul

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

Expert Solution

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions