Copley Paper Supply expects to have the sales and expenses shown for May, June, and July. The company expects to receive 70% of the sales in the month of the sale, 25% thefollowing month, and 5% to be uncollectible. The company's policy to pay manufacturing cost includes 65% in the month incurred and 35% the following month. All other costs are paid in the month incurred. In addition, the company must pay an income tax payment in July, which the company estimates will be 10% of total sales for the quarter. The company will also receive interest revenue of $1,200 in June. April $102,500 $100,000 $105,200 $107,100 May June July Sales Manufacturing costs Selling expenses Administrative expenses 30,000 34,500 38,000 36,500 14,900 22,500 14,900 20,000 15,000 25,000 20,000 22,500 Prepare the cash budget for the three months if the cash balance as of May 1, 2015, totaled $102,000. The company requires a $100,000 minimum cash balance.

Copley Paper Supply expects to have the sales and expenses shown for May, June, and July. The company expects to receive 70% of the sales in the month of the sale, 25% thefollowing month, and 5% to be uncollectible. The company's policy to pay manufacturing cost includes 65% in the month incurred and 35% the following month. All other costs are paid in the month incurred. In addition, the company must pay an income tax payment in July, which the company estimates will be 10% of total sales for the quarter. The company will also receive interest revenue of $1,200 in June. April $102,500 $100,000 $105,200 $107,100 May June July Sales Manufacturing costs Selling expenses Administrative expenses 30,000 34,500 38,000 36,500 14,900 22,500 14,900 20,000 15,000 25,000 20,000 22,500 Prepare the cash budget for the three months if the cash balance as of May 1, 2015, totaled $102,000. The company requires a $100,000 minimum cash balance.

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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