Collections from customers are normally 67 percent in the month of sale, 15 percent in the month following the sale, and 16 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 5 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $69,000, and sales for August are forecasted at $75,000. Cash disbursements for expenses are expected to be $15,400 for the month of August. The company's cash balance on August 1 was $31,000. Required: 1. Prepare the expected cash collections during August. 2. Prepare the expected cash disbursements during August. 3. Calculate the expected cash balance on August 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the expected cash collections during August. TEJAS WINDOW TINT Expected Cash Collections August Month Sales Percent Expected Collections June $ 65,000 % July 71,000 % August 67 % Total $ 0
Collections from customers are normally 67 percent in the month of sale, 15 percent in the month following the sale, and 16 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 5 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $69,000, and sales for August are forecasted at $75,000. Cash disbursements for expenses are expected to be $15,400 for the month of August. The company's cash balance on August 1 was $31,000. Required: 1. Prepare the expected cash collections during August. 2. Prepare the expected cash disbursements during August. 3. Calculate the expected cash balance on August 31. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the expected cash collections during August. TEJAS WINDOW TINT Expected Cash Collections August Month Sales Percent Expected Collections June $ 65,000 % July 71,000 % August 67 % Total $ 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
bh.2
Transcribed Image Text:EX 9-26 (Algo) Cash Budgeting (LO 9-3, 9-5)
The following information is from Tejas WindowTint's financial records.
Month
April
May
June
July
Sales
$ 74,000
Purchases
$ 43,000
56,000
44,000
62,000
67,000
65,000
71,000
Collections from customers are normally 67 percent in the month of sale, 15 percent in the month following the sale, and 16 percent in
the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes
full advantage of the 5 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are
budgeted at $69,000, and sales for August are forecasted at $75,000. Cash disbursements for expenses are expected to be $15,400
for the month of August. The company's cash balance on August 1 was $31,000.
Required:
1. Prepare the expected cash collections during August.
2. Prepare the expected cash disbursements during August.
3. Calculate the expected cash balance on August 31.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3
Prepare the expected cash collections during August.
TEJAS WINDOW TINT
Expected Cash Collections
August
Month
Sales
Percent
Expected
Collections
June
$
65,000
%
July
71,000
%
August
67%
Total
69
$
0
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