Master Budget - Solutions 5. The Storm Meadows Resort is preparing a cash budget for July. Management has collected the following information: a. The cash balance on June 30 is $275000. b. Actual services provided in May and June and projected services for July are: Cash services Credit services May $195000 675000 June July $180000 $175000 927000 810000 1/3 of credit services are collected in the month of service and 2/3 are collected in the following month, c. During July, $85000 of cleaning supplies will be purchased. Accounts are usually paid for over two months: 75% in the month of purchase, 25% in the month following purchase. Accounts payable (the remaining balance owed) on June 30th is $17500. Salaries and wages paid in July will be $725000. Depreciation on equipment used for the resort for July will be $204000. d. e. Other cash expenses for July will be $192000. f. 8. The resort must repay a short-term loan during July. The payment is $72000, including interest. Prepare a cash budget for July.

Master Budget - Solutions 5. The Storm Meadows Resort is preparing a cash budget for July. Management has collected the following information: a. The cash balance on June 30 is $275000. b. Actual services provided in May and June and projected services for July are: Cash services Credit services May $195000 675000 June July $180000 $175000 927000 810000 1/3 of credit services are collected in the month of service and 2/3 are collected in the following month, c. During July, $85000 of cleaning supplies will be purchased. Accounts are usually paid for over two months: 75% in the month of purchase, 25% in the month following purchase. Accounts payable (the remaining balance owed) on June 30th is $17500. Salaries and wages paid in July will be $725000. Depreciation on equipment used for the resort for July will be $204000. d. e. Other cash expenses for July will be $192000. f. 8. The resort must repay a short-term loan during July. The payment is $72000, including interest. Prepare a cash budget for July.

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter15: Working Capital Management

Section: Chapter Questions

Problem 10P: CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of...

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