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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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![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.
May
$102,500 $100,000 $105,200 $107,100
Аpril
June
July
Sales
Manufacturing costs
30,000
34,500
38,000
36,500
Selling expenses
Administrative expenses
14,900
14,900
22,500
15,000
20,000
20,000
22,500
25,000
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F576d167e-2c66-4160-8209-1a4b417389db%2F4c56840e-4fc9-45e9-a353-8105d132f83b%2Fv7ho9a_processed.png&w=3840&q=75)
Transcribed Image Text: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.
May
$102,500 $100,000 $105,200 $107,100
Аpril
June
July
Sales
Manufacturing costs
30,000
34,500
38,000
36,500
Selling expenses
Administrative expenses
14,900
14,900
22,500
15,000
20,000
20,000
22,500
25,000
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.
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