Prepare a cash budget for Atlas Products, Inc. for the first year of 20X2, based on the following information. The budgeting section of the corporate finance department of Atlas Products has received the following sales estimates from the marketing department: Total Sales Credit Sales December 20X1 $825,000 $770,000 January 20X2 730,000 690,000 February 20X2 840,000 780,000 March 20X2 920,000 855,000 The company has found that, on average, about 25 percent of its credit sales are collected during the month when the sale is made, and the remaining 75 percent of credit sales are collected during the month following the sale. As a result, the company uses these figures for budgeting. The company estimates its purchases at 60 percent of next month's sales, and payment for those purchases are budgeted to lag the purchases by 1 month. Various disbursements have been estimated as follows:

Prepare a cash budget for Atlas Products, Inc. for the first year of 20X2, based on the following information. The budgeting section of the corporate finance department of Atlas Products has received the following sales estimates from the marketing department: Total Sales Credit Sales December 20X1 $825,000 $770,000 January 20X2 730,000 690,000 February 20X2 840,000 780,000 March 20X2 920,000 855,000 The company has found that, on average, about 25 percent of its credit sales are collected during the month when the sale is made, and the remaining 75 percent of credit sales are collected during the month following the sale. As a result, the company uses these figures for budgeting. The company estimates its purchases at 60 percent of next month's sales, and payment for those purchases are budgeted to lag the purchases by 1 month. Various disbursements have been estimated as follows:

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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