During December 2021, Hybrid has the following information to prepare its cash budget for January (4 weeks) 2022: Bank balance at 1 January 2022 is $ 6,000 bank overdraft. December sales were $90,000 (50% were on credit/account, 50% were cash). The December and January credit sales customers are expected to pay in the month following and be given a 3% discount for prompt payment. January sales - estimated to be $80,000 (40% on credit/account, 60% cash). Creditors are paid in the month after purchase. The balance of creditors at 31 December 2021 was $10,000. Computers will be purchased on 29 January for $30,000 cash and $20,000 on account. Other cash expenses are expected to be $5,000 each week. Owner takes $900 cash and $100 stock each fortnight for personal use. $500 interest on loan will be repaid to RIP on 31 January. Sale of machinery for cash in January is estimated to be $9,350. Gain on sale is estimated to be $2,350. Depreciation is $500 each month. Wages payments will be $20,900 each month. Required a) Prepare a Cash Budget for Hybrid for the month ending 31 January 2022. $ $ Cash receipts: Less cash payments: Increase (Decrease) in Cash Cash (Overdraft) at 1 January 2022 Cash (Overdraft) at 31 January 2022
During December 2021, Hybrid has the following information to prepare its cash budget for January (4 weeks) 2022: Bank balance at 1 January 2022 is $ 6,000 bank overdraft. December sales were $90,000 (50% were on credit/account, 50% were cash). The December and January credit sales customers are expected to pay in the month following and be given a 3% discount for prompt payment. January sales - estimated to be $80,000 (40% on credit/account, 60% cash). Creditors are paid in the month after purchase. The balance of creditors at 31 December 2021 was $10,000. Computers will be purchased on 29 January for $30,000 cash and $20,000 on account. Other cash expenses are expected to be $5,000 each week. Owner takes $900 cash and $100 stock each fortnight for personal use. $500 interest on loan will be repaid to RIP on 31 January. Sale of machinery for cash in January is estimated to be $9,350. Gain on sale is estimated to be $2,350. Depreciation is $500 each month. Wages payments will be $20,900 each month. Required a) Prepare a Cash Budget for Hybrid for the month ending 31 January 2022. $ $ Cash receipts: Less cash payments: Increase (Decrease) in Cash Cash (Overdraft) at 1 January 2022 Cash (Overdraft) at 31 January 2022
Chapter4: Financial Planning And Forecasting
Section: Chapter Questions
Problem 4P
Related questions
Question
During December 2021, Hybrid has the following information to prepare its
- Bank balance at 1 January 2022 is $ 6,000 bank overdraft.
- December sales were $90,000 (50% were on credit/account, 50% were cash). The December and January credit sales customers are expected to pay in the month following and be given a 3% discount for prompt payment. January sales - estimated to be $80,000 (40% on credit/account, 60% cash).
- Creditors are paid in the month after purchase. The balance of creditors at 31 December 2021 was $10,000.
- Computers will be purchased on 29 January for $30,000 cash and $20,000 on account.
- Other cash expenses are expected to be $5,000 each week.
- Owner takes $900 cash and $100 stock each fortnight for personal use.
- $500 interest on loan will be repaid to RIP on 31 January.
- Sale of machinery for cash in January is estimated to be $9,350. Gain on sale is estimated to be $2,350.
Depreciation is $500 each month.- Wages payments will be $20,900 each month.
Required
a) Prepare a Cash Budget for Hybrid for the month ending 31 January 2022.
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$ |
Cash receipts: |
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Less cash payments: |
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Increase (Decrease) in Cash |
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Cash (Overdraft) at 1 January 2022 |
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Cash (Overdraft) at 31 January 2022 |
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