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 April $ 417,000 194,000 81,200 10,900 40,500 May June $366,000 $ 454,000 182,000 215,000 76,700 10,900 13,000 105,400 10,900 162,000 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 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 $344,000. Using this information, complete the following cash budget.
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 April $ 417,000 194,000 81,200 10,900 40,500 May June $366,000 $ 454,000 182,000 215,000 76,700 10,900 13,000 105,400 10,900 162,000 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 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 $344,000. Using this information, complete the following cash budget.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
April
$ 417,000
194,000
81,200
10,900
40,500
May
June
$ 366,000 $ 454,000
182,000
215,000
76,700
10,900
13,000
105,400
10,900
162,000
The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of
the sale, and the remaining 55 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 $344,000.
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.
Transcribed Image Text: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
SA
SA
April
124,000
186,000
May
June
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