Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2022: Credit sales Credit purchases Cash disbursements. Wages, taxes, and expenses. Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2022, credit sales were $329,000. Purchases Wages, taxes, and expenses Interest April May June $ 402,000 $ 351,000 $ 439,000 179,000 167,000 200,000 Using this information, complete the following cash budget. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Equipment purchases Total cash disbursements 79,700 9,400 33,000 Ending cash balance $ 75,200 9,400 5,500 X Answer is complete but not entirely correct. April May $ 103,900 9,400 147,000 $ $ $ 109,000 $ 338,100 447,100 $ 171,000 79,700✔ 9,400 33,000✔ 293,100 154,000 $ $ $ 158,000 $ 364,050 522,050 x $ 167,000 $ 75,200 9,400 5,500 257,100 X $ 264,950 $ June 231,950 364,250 596,200 X 0x 103,900 9,400✔ 147,000✔ 260,300 X 364,900
Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2022: Credit sales Credit purchases Cash disbursements. Wages, taxes, and expenses. Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2022, credit sales were $329,000. Purchases Wages, taxes, and expenses Interest April May June $ 402,000 $ 351,000 $ 439,000 179,000 167,000 200,000 Using this information, complete the following cash budget. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Equipment purchases Total cash disbursements 79,700 9,400 33,000 Ending cash balance $ 75,200 9,400 5,500 X Answer is complete but not entirely correct. April May $ 103,900 9,400 147,000 $ $ $ 109,000 $ 338,100 447,100 $ 171,000 79,700✔ 9,400 33,000✔ 293,100 154,000 $ $ $ 158,000 $ 364,050 522,050 x $ 167,000 $ 75,200 9,400 5,500 257,100 X $ 264,950 $ June 231,950 364,250 596,200 X 0x 103,900 9,400✔ 147,000✔ 260,300 X 364,900
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2022:
April
May
$ 402,000
179,000
$ 351,000
167,000
Credit sales
Credit purchases
Cash disbursements
Wages, taxes, and expenses
Interest
Equipment purchases
Beginning cash balance
Cash receipts
Cash collections from credit sales
Total cash available
Cash disbursements
The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of
the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following
the purchase. In March 2022, credit sales were $329,000.
Purchases
Wages, taxes, and expenses
Interest
79,700
9,400
33,000
Using this information, complete the following cash budget.
Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.
Equipment purchases
Total cash disbursements
Ending cash balance
$
75,200
9,400
5,500
$
June
$ 439,000
200,000
Answer is complete but not entirely correct.
April
May
$
$
$
103,900
9,400
147,000
109,000 $
338,100
447,100 $
171,000
79,700
9,400
33,000
293,100
154,000
$
$
$
158,000 $
364,050
522,050 $
167,000 X $
75,200
9,400
5,500
257,100 X $
264,950 $
June
231,950
364,250
596,200 X
0X
103,900
9,400
147,000
260,300 X
364,900
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