Cash BudgetJanet Wooster owns a retail store that sells new and used sporting equipment. Janet has requested a cash budget for October.After examining the records of the company, you find the following:a. Cash balance on October 1 is $1,120.b. Actual sales for August and September are as follows:AugustSeptemberCash sales$6,000$4,500Credit sales58,00062,000Total sales$64,000$66,500c. Credit sales are collected over a three-month period: 40 percent in the month of sale, 36 percent in the next month, and 22percent in the second month after the sale. The remaining sales are uncollectible.d. Inventory purchases average 70 percent of a month's total sales. Of those purchases, 45 percent are paid for in the month ofpurchase. The remaining 55 percent are paid for in the followinge. Salaries and wages total $3,850 per month.f. Rent is $3,150 per month.g. Taxes to be paid in October are $1,635.h. Janet usually withdraws $3,500 each month as her salary.i. Advertising is $1,500 per month.j. Other operating expenses total $3,800 per month.k. Internet and telephone fees are $320 per month.onth.Janet tells you that she expects cash sales of $5,000 and credit sales of $64,000 for October. She likes to have $3,000 on hand atthe end of the month and is concerned about the potential October ending balance.Required:Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round yourintermediate computations and final answers to the nearest dollar.Wooster Sporting Goods StoreCash BudgetFor the Month of OctoberBeginning cash balanceCollections:Check My Work 10 more Check My Work uses remaining.PreviousNext Required:Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round yourintermediate computations and final answers to the nearest dollar.Wooster Sporting Goods StoreCash BudgetFor the Month of OctoberBeginning cash balanceCollections:Cash salesCredit sales:OctoberSeptemberAugustTotal cash availableDisbursements:Inventory purchases:OctoberSeptemberSalaries and wagesRentTaxesOther operating expensesOwner withdrawalAdvertisingInternet and telephoneEnding cash balanceCheck My Work 10 more Check My Work uses remaining.PreviousNext

Cash budget is one of the important type of budget being prepared in business. It shows expected…

Required: Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round your intermediate computations and final answers to the nearest dollar. Wooster Sporting Goods Store Cash Budget For the Month of October Beginning cash balance Collections: Cash sales Credit sales: October September August Total cash available

Required: Prepare a cash budget for October. Include supporting schedules for cash collections and cash payments. Round your intermediate computations and final answers to the nearest dollar. Wooster Sporting Goods Store Cash Budget For the Month of October Beginning cash balance Collections: Cash sales Credit sales: October September August Total cash available

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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Cash Budget
PLEASE USE MS WORD TO DO THE THREE PARTS. WITH THE LAST PART HAVING OCTOBER NOVEMBER DECEMBER AND A TOTAL COLUMN. The business needs to have a sense of its future cashflows and therefore requires the preparation of the following: A schedule of budgeted cash collections for trade receivables (sales on account) for each of the months October to December. A schedule of expected cash disbursements for accounts payable (purchases on account) for each of the months October to December. A cash budget, with a total column, for the quarter ending December 31, 2021, showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no financing activities took place.
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Jayden's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mrs. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecast sales figures: November December Actual $ 240,000 January 260,000 February March Forecast Additional Information $ 320,000 April forecast $360,000 360,000 370,000 Of the firm's sales, 60 percent are for cash and the remaining 40 percent are on credit. Of credit sales, 30 percent are paid in the month after sale and 70 percent are paid in the second month after the sale. Materials cost 30 percent of sales and are purchased and received each month in an amount sufficient to cover the following month's expected sales. Materials are paid for in the month after they are received. Labor expense is 40 percent of sales and is paid for in the month of sales. Selling and administrative expense…
Capes Corporation is a wholesaler of industrial goods. Data regarding the store's operations follow • Sales are budgeted at $470,000 for November, $480,000 for December, and $460,000 for January • Collections are expected to be 60% in the month of sale and 40% in the month following the sale The cost of goods sold is 70% of sales. • The compary desires an ending merchandise inventory equal to 40% of the cost of goods sold in the following month. Payment for merchandise is made in the month following the purchase. - The November beginning balance in the accounts receivable account is $82,000. The November beginning balance in the accounts payable account is $269,000. Required: a. Prepare a Schedule of Expected Cash Collections for November and December b. Prepare a Merchandise Purchases Budget for November and December. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a Schedule of Expected Cash Collections for November and December.…
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