Kelsey is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next threemonths follow.BudgetedSalesCash payments formerchandise purchasesSales are 20% cash and 80% on credit. Sales in June were $57,850. All credit sales are collected in the month followingthe sale. The June 30 balance sheet includes balances of $13,900 in cash and $6,600 in loans payable. A minimumcash balance of $8,500 is required. Loans are obtained at the end of any month when the preliminary cash balance isbelow $8,500. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $8,500 at month-end exists, loans are repaid from the excess. Expenses arepaid in the month incurred and consist of sales commissions (10% of sales), office salaries ($5,600 per month), and rent($8,100 per month).(1) Prepare a schedule of cash receipts from sales for July, August, and September.(2) Prepare a cash budget for July, August, and September.Required Required12Complete this question by entering your answers in the tabs below.Beginning cash balance.Prepare a cash budget for July, August, and September. (Negative balances and Loanrepayment amounts (if any) should be indicated with minus sign. Round your final answersto the nearest whole dollar.)Total cash availableCash payments for:August September$$81,60049,60043,600 32,00032,800Total cash paymentsPreliminary cash balanceEnding cash balanceJuly$62,400Loan balance - Beginningof monthAdditional loan (loanrepayment)Loan balance - End ofmonthKELSEYCash BudgetJuly00Loan balanceJuly$6,600August September0< Required 1000August SeptemberRequired 2 > Kelsey is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow.BudgetedSalesAugust$ 81,600September$ 49,600Cash payments for merchandisepurchases32,00032,800Sales are 20% cash and 80% on credit. Sales in June were $57,850. All credit sales are collected in the month following the sale. TheJune 30 balance sheet includes balances of $13,900 in cash and $6,600 in loans payable. A minimum cash balance of $8,500 isrequired. Loans are obtained at the end of any month when the preliminary cash balance is below $8,500. Interest is 1% per monthbased on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $8,500 atmonth-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and consist of sales commissions (10% ofsales), office salaries ($5,600 per month), and rent ($8,100 per month).(1) Prepare a schedule of cash receipts from sales for July, August, and September.(2) Prepare a cash budget for July, August, and September.Complete this question by entering your answers in the tabs below.Required 1Required 2July$62,40043,600Prepare a schedule of cash receipts from sales for July, August, and September.SalesCash receipts fromCash salesKELSEYCollections of prior period salesTotal cash receiptsSchedule of Cash Receipts from SalesJulyAugustSeptember$ 62,400 $ 81,600 $ 49,600< Required 1Required 2

The cash budget indicates the estimated cash inflows and cash outflows. The companies prepare a cash…

Kelsey is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. Budgeted Sales Cash payments for merchandise purchases Sales are 20% cash and 80% on credit. Sales in June were $57,850. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $13,900 in cash and $6,600 in loans payable. A minimum cash balance of $8,500 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $8,500. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month- end. If a preliminary cash balance above $8,500 at month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($5,600 per month), and rent ($8,100 per month). August September $ $ 81,600 49,600 43,600 32,000 32,800 (1) Prepare a schedule of cash receipts from sales for July, August, and September. (2) Prepare a cash budget for July, August, and September. Required Required 1 2 July $62,400 Complete this question by entering your answers in the tabs below. Beginning cash balance Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash available Cash payments for: KELSEY Cash Budget July 0 August September 0

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q