company is planning Month Sales Revenue Month Sales Revenue $200.000 155,000 January February $300,000 March 245,000 April 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 70 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $40,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $30,000. Prepare monthly cash budgets for February, March, and April. Jse negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers. Wilson's Retail Company Cash Budgets February, March, and April February March Cash balance, beginning S Total Cash receipts Cash available Total disbursements Cash balance, ending $ $ $ April

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**Cash Budget**

Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows:

| Month     | Sales Revenue |
|-----------|---------------|
| January   | $300,000      |
| February  | $245,000      |
| March     | $200,000      |
| April     | $155,000      |

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 70 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $40,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $30,000.

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.**

**Wilson's Retail Company Cash Budgets**  
*February, March, and April*

|                           | February | March | April |
|---------------------------|----------|-------|-------|
| Cash balance, beginning   | $        | $     | $     |
| Total Cash receipts       | $        | $     | $     |
| Cash available            | $        | $     | $     |
| Total disbursements       | $        | $     | $     |
| Cash balance, ending      | $        | $     | $     |
Transcribed Image Text:**Cash Budget** Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows: | Month | Sales Revenue | |-----------|---------------| | January | $300,000 | | February | $245,000 | | March | $200,000 | | April | $155,000 | 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 70 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $40,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $30,000. 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.** **Wilson's Retail Company Cash Budgets** *February, March, and April* | | February | March | April | |---------------------------|----------|-------|-------| | Cash balance, beginning | $ | $ | $ | | Total Cash receipts | $ | $ | $ | | Cash available | $ | $ | $ | | Total disbursements | $ | $ | $ | | Cash balance, ending | $ | $ | $ |
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