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Complete the cash budget in the following table. Note: Negative amounts should be indicated by a minus sign.

Complete the cash budget in the following table. Note: Negative amounts should be indicated by a minus sign.

FINANCIAL ACCOUNTING
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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The following table lists data from the budget of Ritewell Publishers. Half the company's sales are for cash immediately; the other half are paid for with a one-month delay. The company pays all its credit purchases with a one-month delay. Credit purchases in January were $48, and total sales in January were $216. Assume all expenses, other than purchases, are cash transactions. Total sales February $ 236 March $ 256 April $ 216 Purchases of materials For cash 88 98 78 For credit 58 48 58 Other expenses 48 48 48 Taxes, interest, and dividends 28 28 28 Capital investment 25 0 0 Complete the cash budget in the following table. Note: Negative amounts should be indicated by a minus sign. Particulars Sources of cash: Collections on cash sales Collections on accounts receivables Total sources of cash Uses of cash: Payments of accounts payable Cash purchases of materials Other expenses Capital expenditures Taxes, interest, and dividends Total uses of cash February March April Net cash inflow Cash at start of period $ 100 Net cash inflow Cash at end of period Minimum operating cash balance $ 100 $ 100 $ 100 Cumulative short-term financing required
Transcribed Image Text:The following table lists data from the budget of Ritewell Publishers. Half the company's sales are for cash immediately; the other half are paid for with a one-month delay. The company pays all its credit purchases with a one-month delay. Credit purchases in January were $48, and total sales in January were $216. Assume all expenses, other than purchases, are cash transactions. Total sales February $ 236 March $ 256 April $ 216 Purchases of materials For cash 88 98 78 For credit 58 48 58 Other expenses 48 48 48 Taxes, interest, and dividends 28 28 28 Capital investment 25 0 0 Complete the cash budget in the following table. Note: Negative amounts should be indicated by a minus sign. Particulars Sources of cash: Collections on cash sales Collections on accounts receivables Total sources of cash Uses of cash: Payments of accounts payable Cash purchases of materials Other expenses Capital expenditures Taxes, interest, and dividends Total uses of cash February March April Net cash inflow Cash at start of period $ 100 Net cash inflow Cash at end of period Minimum operating cash balance $ 100 $ 100 $ 100 Cumulative short-term financing required
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