No.2 The Medvedev Company, a merchandising firm, has planned the following sales for the next four months: Total budgeted Sales March S50,000 April $70,000 May June $90,000 S60,000 July $90,000 Sales are made 60% for cash and 40% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale. First month following month of sale . Second month following month of sale 70% 20% 8% Uncollectible 2% Medvedev has a building that is not used in the business operation; they rented it out and receive S10,040 rent every month. The company requires a minimum cash balance of $14,000 to start a month. Required a) Prepare uie sunedule of cash receipts for the second quarter. February sales revenue was $80,000. b) Assume the following budgeted data for June: .$52,000 $10,000 $18,000 $18,000 Purchases. Selling and administrative expenses Depreciation . Equipment purchases Dividend payment. Тах рayment. Cash balance, beginning of June . $12,000 $4,000 $9,720 Using this data, along with your answer to part (a) above, prepare a cash budget in good form for June. The company can borrow in any dollar amount, but will not pay any interest until the following month.
No.2 The Medvedev Company, a merchandising firm, has planned the following sales for the next four months: Total budgeted Sales March S50,000 April $70,000 May June $90,000 S60,000 July $90,000 Sales are made 60% for cash and 40% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale. First month following month of sale . Second month following month of sale 70% 20% 8% Uncollectible 2% Medvedev has a building that is not used in the business operation; they rented it out and receive S10,040 rent every month. The company requires a minimum cash balance of $14,000 to start a month. Required a) Prepare uie sunedule of cash receipts for the second quarter. February sales revenue was $80,000. b) Assume the following budgeted data for June: .$52,000 $10,000 $18,000 $18,000 Purchases. Selling and administrative expenses Depreciation . Equipment purchases Dividend payment. Тах рayment. Cash balance, beginning of June . $12,000 $4,000 $9,720 Using this data, along with your answer to part (a) above, prepare a cash budget in good form for June. The company can borrow in any dollar amount, but will not pay any interest until the following month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
please solve it.
Transcribed Image Text:No.2
The Medvedev Company, a merchandising firm, has planned the following sales for the next four
months:
March
$50,000
April
$70,000
May
$90,000 S60,000
June
Total budgeted
July
$90,000
Sales
Sales are made 60% for cash and 40% on account. From experience, the company has learned
that a month's sales on account are collected according to the following pattern:
Month of sale
70%
First month following month of sale .
Second month following month of sale
20%
8%
Uncollectible .
2%
Medvedev has a building that is not used in the business operation; they rented it out and receive
$10,040 rent every month. The company requires a minimum cash balance of $14,000 to start a
month.
Required
a) Prepare uie senedule of cash receipts for the second quarter. February sales revenue was $80,000.
b) Assume the following budgeted data for June:
$52,000
$10,000
$18,000
$18,000
Purchases.
Selling and administrative expenses
Depreciation
Equipment purchases .
Dividend payment.
Таx payment
Cash balance, beginning of June
.$12,000
$4,000
$9,720
Using this data, along with your answer to part (a) above, prepare a cash budget in good form
for June. The company can borrow in any dollar amount, but will not pay any interest until the
following month.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education