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Here are some important figures from the budget of Nasvhille Nougats, Incorporated, 18 the second quarter of 2022: April May Credit sales $324,000 $304,000 June $364,000 Credit purchases 132,000 155,000 180,000 Cash disbursements Wages, taxes, and expenses 44,400 11,900 63,400 Interest 11,400 11,400 11,400 Equipment purchases 84,000 158,000 0

Here are some important figures from the budget of Nasvhille Nougats, Incorporated, 18 the second quarter of 2022: April May Credit sales $324,000 $304,000 June $364,000 Credit purchases 132,000 155,000 180,000 Cash disbursements Wages, taxes, and expenses 44,400 11,900 63,400 Interest 11,400 11,400 11,400 Equipment purchases 84,000 158,000 0

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 Nasvhille Nougats, Incorporated, for the second quarter of 2022: Credit sales April $324,000 May $ 304,000 June $364,000 Credit purchases 132,000 155,000 180,000 Cash disbursements Wages, taxes, and expenses 44,400 11,900 63,400 Interest 11,400 11,400 11,400 Equipment purchases 84,000 158,000 0 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 $194,000, and credit purchases were $134,000. Using this information, complete the following cash budget. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) 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 $ 127,000 June
Transcribed Image Text:Here are some important figures from the budget of Nasvhille Nougats, Incorporated, for the second quarter of 2022: Credit sales April $324,000 May $ 304,000 June $364,000 Credit purchases 132,000 155,000 180,000 Cash disbursements Wages, taxes, and expenses 44,400 11,900 63,400 Interest 11,400 11,400 11,400 Equipment purchases 84,000 158,000 0 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 $194,000, and credit purchases were $134,000. Using this information, complete the following cash budget. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) 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 $ 127,000 June
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