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Salaries are approximately $30,000 a month. Lease payments are $8,000 a month. Depreciation charges are $38,000 a month. Miscellaneous expenses are $3,700 a month. Income tax payments of $43,000 are due in September and December. A progress payment of $250,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $125,000, and a minimum cash balance of $100,000 should be maintained throughout the cash budget period. Prepare a monthly cash budget for the last 6 months of 2020. Find the amount of money to be borrowed or surplus to be invested

Salaries are approximately $30,000 a month. Lease payments are $8,000 a month. Depreciation charges are $38,000 a month. Miscellaneous expenses are $3,700 a month. Income tax payments of $43,000 are due in September and December. A progress payment of $250,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $125,000, and a minimum cash balance of $100,000 should be maintained throughout the cash budget period. Prepare a monthly cash budget for the last 6 months of 2020. Find the amount of money to be borrowed or surplus to be invested

FINANCIAL ACCOUNTING
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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Salaries are approximately $30,000 a month. Lease payments are $8,000 a month. Depreciation charges are $38,000
a month. Miscellaneous expenses are $3,700 a month. Income tax payments of $43,000 are due in September and
December. A progress payment of $250,000 on a new design studio must be paid in October. Cash on hand on July
1 will be $125,000, and a minimum cash balance of $100,000 should be maintained throughout the cash budget
period.
Prepare a monthly cash budget for the last 6 months of 2020. Find the amount of money to be borrowed or surplus to
be invested

November 165,000 December 95,000 Salaries are approximately $30,000 a month. Lease payments are $8,000 a month. Depreciation charges are $38,000 a month. Miscellaneous expenses are $3,700 a month. Income tax payments of $43,000 are due in September and December. A progress payment of $250,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $125,000, and a minimum cash balance of S100,000 should be maintained throughout the cash budget period. Prepare a monthly cash budget for the last 6 months of 2020. Find the amount of money to be borrowed or surplus to be invested.
Transcribed Image Text:November 165,000 December 95,000 Salaries are approximately $30,000 a month. Lease payments are $8,000 a month. Depreciation charges are $38,000 a month. Miscellaneous expenses are $3,700 a month. Income tax payments of $43,000 are due in September and December. A progress payment of $250,000 on a new design studio must be paid in October. Cash on hand on July 1 will be $125,000, and a minimum cash balance of S100,000 should be maintained throughout the cash budget period. Prepare a monthly cash budget for the last 6 months of 2020. Find the amount of money to be borrowed or surplus to be invested.
Q2. Forecasts for the firm for parts of 2020 and 2021 are given below: May 190,000 June 210,000 July 370,000 August 540,000 September 780,000 October 360,000 November 95,000 December 190,000 January Collected within the month of sale, 15%; collected the month following the sale, 70%; collected the second month 180,000 following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: Мay 90,000 June 95,000 July 135,000 August 890,000 September 310,000 October 250,000
Transcribed Image Text:Q2. Forecasts for the firm for parts of 2020 and 2021 are given below: May 190,000 June 210,000 July 370,000 August 540,000 September 780,000 October 360,000 November 95,000 December 190,000 January Collected within the month of sale, 15%; collected the month following the sale, 70%; collected the second month 180,000 following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: Мay 90,000 June 95,000 July 135,000 August 890,000 September 310,000 October 250,000
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