Fill in the missing cells in the following cash budget. Interpret the values for NCF and the ending cash position. Develop a cash budget for the next two months using the following information: Monthly sales forecasts are $210,000 and $30,000 for the next two months Sales in the current month were $140,000 80 percent of sales are collected in the month of sale, with the remainder collected in the follow-ing month Cost of goods sold equal 70 percent o sales The monthly lease payment is $75,000 The cash position at the end of the current month is $70,000 The target cash balance is $40,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Fill in the missing cells in the following cash budget. Interpret the values for NCF and the
ending cash position. Develop a cash budget for the next two months using the following
information: Monthly sales forecasts are $210,000 and $30,000 for the next two months Sales
in the current month were $140,000 80 percent of sales are collected in the month of sale,
with the remainder collected in the following month Cost of goods sold equal 70 percent o
sales The monthly lease payment is $75,000 The cash position at the end of the current
month is $70,000 The target cash balance is $40,000
Transcribed Image Text:Fill in the missing cells in the following cash budget. Interpret the values for NCF and the ending cash position. Develop a cash budget for the next two months using the following information: Monthly sales forecasts are $210,000 and $30,000 for the next two months Sales in the current month were $140,000 80 percent of sales are collected in the month of sale, with the remainder collected in the following month Cost of goods sold equal 70 percent o sales The monthly lease payment is $75,000 The cash position at the end of the current month is $70,000 The target cash balance is $40,000
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