the second quarter of 2021:Credit salesCredit purchasesCash disbursementsWages, taxes, andexpensesInterestEquipment purchasesBeginning cash balanceCash receiptsCash collections from credit salesTotal cash availableCash disbursementsThe company predicts that 5 percent of its credit sales will never be collected, 30percent of its sales will be collected in the month of the sale, and the remaining 65percent will be collected in the following month. Credit purchases will be paid in themonth following the purchase.PurchasesWages, taxes, and expensesInterestIn March 2021, credit sales were $190,000 and credit purchases were $130,000. Usingthis information, complete the following cash budget: (Do not round intermediatecalculations. Leave no cells blank - be certain to enter "0" wherever required.)Equipment purchasesAprilMayJune$320,000 $300,000 $360,000128,000 151,000176,000Total cash disbursements44,00011,00080,000Ending cash balance11,50011,000150,000$63,00011,0000April123,000MayJune< Prev7 of 8------Ne

The cash budget is prepared for a short-term period which can be on a monthly or quarterly basis to…

Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases $320,000 $300,000 $360,000 128,000 151,000 176,000 44,000 11,000 80,000 11,500 11,000 150,000 63,000 11,000 0 The company predicts that 5 percent of its credit sales will never be collected, 30 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2021, credit sales were $190,000 and credit purchases were $130,000. Using this information, complete the following cash budget (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases $320,000 $300,000 $360,000 128,000 151,000 176,000 44,000 11,000 80,000 11,500 11,000 150,000 63,000 11,000 0 The company predicts that 5 percent of its credit sales will never be collected, 30 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2021, credit sales were $190,000 and credit purchases were $130,000. Using this information, complete the following cash budget (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

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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