Compile AnYeLiR's Cash Budget. Co. for March, April and May. The company had sales in January and February of Rp. 85 million and Rp. 87.5 million. It is estimated that sales in the coming months for March, April and May will be IDR 90 million, IDR 95 million and IDR 97.5 million. The company had a cash balance of IDR 27.5 million as of March 1 and will maintain a minimum cash balance of IDR 17.5 million. The following is the data needed to prepare a Cash Budget: Sales policy: 20% of sales are paid in cash, 50% of sales are paid one month later, the remaining 30% is paid the next two months. The company received other receipts amounting to Rp 7.5 million in March, April and May. Purchase policy: Purchase at 75% of sales. Cash purchases are 10% of purchases, 60% are paid the next month, the remaining 30% are paid the next two months. Wages and salaries accounted for 15% of sales in the previous month. The tax payment in April is IDR 10 million Fixed-asset outlays in April amounting to IDR 5 million Interest payment in May is IDR 8 million Cash dividend in March amounting to IDR 6 million Principal payment in April of IDR 15 million. Question: Compile AnYeLiR's Cash Budget. Co. for the months of March, April and May Cash Budget is a tool used in the company's cash planning process. Explain the purpose of cash budgeting and what is the role of the sales forecast in preparing the cash budget

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compile AnYeLiR's Cash Budget. Co. for March, April and May. The company had sales in January and February of Rp. 85 million and Rp. 87.5 million. It is estimated that sales in the coming months for March, April and May will be IDR 90 million, IDR 95 million and IDR 97.5 million. The company had a cash balance of IDR 27.5 million as of March 1 and will maintain a minimum cash balance of IDR 17.5 million. The following is the data needed to prepare a Cash Budget:

Sales policy: 20% of sales are paid in cash, 50% of sales are paid one month later, the remaining 30% is paid the next two months.
The company received other receipts amounting to Rp 7.5 million in March, April and May.
Purchase policy: Purchase at 75% of sales. Cash purchases are 10% of purchases, 60% are paid the next month, the remaining 30% are paid the next two months.
Wages and salaries accounted for 15% of sales in the previous month.
The tax payment in April is IDR 10 million
Fixed-asset outlays in April amounting to IDR 5 million
Interest payment in May is IDR 8 million
Cash dividend in March amounting to IDR 6 million
Principal payment in April of IDR 15 million. Question:
Compile AnYeLiR's Cash Budget. Co. for the months of March, April and May
Cash Budget is a tool used in the company's cash planning process. Explain the purpose of cash budgeting and what is the role of the sales forecast in preparing the cash budget

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.

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