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Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: Credit sales Credit purchases Cash disbursements 136,000 April May June $328,000 $308,000 $368,000 159,000 184,000 Wages, taxes, and 44,800 12,300 63,800 expenses Interest Equipment purchases 11,800 88,000 11,800 11,800 166,000 0 The company predicts that 5 percent of its credit sales will never be collected, 20 percent of its sales will be collected in the month of the sale, and the remaining 75 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $198,000, and credit purchases were $138,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.) Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance April May June $ 131,000

Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: Credit sales Credit purchases Cash disbursements 136,000 April May June $328,000 $308,000 $368,000 159,000 184,000 Wages, taxes, and 44,800 12,300 63,800 expenses Interest Equipment purchases 11,800 88,000 11,800 11,800 166,000 0 The company predicts that 5 percent of its credit sales will never be collected, 20 percent of its sales will be collected in the month of the sale, and the remaining 75 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $198,000, and credit purchases were $138,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.) Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance April May June $ 131,000

FINANCIAL ACCOUNTING
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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Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: Credit sales Credit purchases Cash disbursements 136,000 April May June $328,000 $308,000 $368,000 159,000 184,000 Wages, taxes, and 44,800 12,300 63,800 expenses Interest Equipment purchases 11,800 88,000 11,800 11,800 166,000 0 The company predicts that 5 percent of its credit sales will never be collected, 20 percent of its sales will be collected in the month of the sale, and the remaining 75 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $198,000, and credit purchases were $138,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.) Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance April May June $ 131,000
Transcribed Image Text:Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: Credit sales Credit purchases Cash disbursements 136,000 April May June $328,000 $308,000 $368,000 159,000 184,000 Wages, taxes, and 44,800 12,300 63,800 expenses Interest Equipment purchases 11,800 88,000 11,800 11,800 166,000 0 The company predicts that 5 percent of its credit sales will never be collected, 20 percent of its sales will be collected in the month of the sale, and the remaining 75 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $198,000, and credit purchases were $138,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.) Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance April May June $ 131,000
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