Prepare a cash budget for the month ended May 31, 2019. Campton Company anticipates a cash balance of $74,000 on May 1, 2019. The following budgeted transactions for May 2019 present data related to anticipated cash receipts and cash disbursements: 1. For May, budgeted cash sales are $50,000 and budgeted credit sales are $490,000. (Credit sales for April were $450,000.) In the month of sale, 40% of credit sales are collected, with the balance collected in the month following sale. 2. Budgeted merchandise purchases for May are $270,000. (Merchandise purchases in April were $240,000.) In the month of purchase, 70% of merchandise purchases are paid for, and the balance is paid for in the following month. 3. Budgeted cash disbursements for salaries and operating expenses for May total $155,000. 4. During May, $25,000 of principal repayment and $4,000 of interest payment are due to the bank. 5. A $20,000 income tax deposit is due to the federal government during May. 6. A new delivery truck will be purchased during May for $4,000 cash and an $8,000 note payable. Depreciation for May will be $450. Prepare a cash budget for Campton Company for the month of May 2019. Campton Company Cash Budget For the Month Ended May 31, 2019 Beginning cash balance Answer Cash receipts: Cash sales Answer Collections on credit sales Answer Cash available Answer Cash disbursements: Payments for merchandise Answer Salaries and operating expense payments Answer Principal and interest payment Answer Income tax deposit Answer Payment on truck Answer Total cash disbursements Answer Ending cash balance Answer
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
not graded... please help Prepare
Prepare a cash budget for the month ended May 31, 2019. Campton Company anticipates a cash balance of $74,000 on May 1, 2019. The following budgeted transactions for May 2019 present data related to anticipated cash receipts and cash disbursements:
1. For May, budgeted cash sales are $50,000 and budgeted credit sales are $490,000. (Credit sales for April were $450,000.) In the month of sale, 40% of credit sales are collected, with the balance collected in the month following sale.
2. Budgeted merchandise purchases for May are $270,000. (Merchandise purchases in April were $240,000.) In the month of purchase, 70% of merchandise purchases are paid for, and the balance is paid for in the following month.
3. Budgeted cash disbursements for salaries and operating expenses for May total $155,000.
4. During May, $25,000 of principal repayment and $4,000 of interest payment are due to the bank.
5. A $20,000 income tax deposit is due to the federal government during May.
6. A new delivery truck will be purchased during May for $4,000 cash and an $8,000 note payable.
Prepare a cash budget for Campton Company for the month of May 2019.
| Campton Company Cash Budget For the Month Ended May 31, 2019 |
||
|---|---|---|
| Beginning cash balance | Answer | |
| Cash receipts: | ||
| Cash sales | Answer | |
| Collections on credit sales | Answer | |
| Cash available | Answer | |
| Cash disbursements: | ||
| Payments for merchandise | Answer | |
| Salaries and operating expense payments | Answer | |
| Principal and interest payment | Answer | |
| Income tax deposit | Answer | |
| Payment on truck | Answer | |
| Total cash disbursements | Answer | |
| Ending cash balance | Answer |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
