Santos Company is preparing a cash budget for February. The company has $10,000 cash at the beginning of February and budgets$73,000 in cash receipts from sales and $101,000 in cash payments during February. Prepare the cash budget for February assumingthe company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company hasno loans outstanding on February 1 (Negative cash balances, if any, should be indicated with minus sign.)SANTOS COMPANYCash BudgetBeginning cash balanceTotal cash availablePreimmary cash balanceLoan activityEnding cash balanceLoan balance, end of month Kingston budgets total sales for June and July of $330,000 and $408,000, respectively. Cash sales are 65% of total sales. Of thecredit sales, 15% are collected in the month of sale, 65% are collected during the first month after the sale, and the remaining 20% arecollected in the second month after the sale. Determine the amount of accounts receivable reported on the company's budgetedbalance sheet as of July 31. Hint: Determine the percent of June and July sales that are uncollected at July 31.Sales month Total SalesJuneJulyTotalS330,000408,000Credit SalesAs of July 31PercentUncollectedAmountUncollected

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Santos Company is preparing a cash budget for February. The company has $10,000 cash at the beginning of February and budgets $73,000 in cash receipts from sales and $101,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Beginning cash balance Total cash avalabile Prelmary cash balance Loan actively Ending cash balance Loan balance, end of month

Santos Company is preparing a cash budget for February. The company has $10,000 cash at the beginning of February and budgets $73,000 in cash receipts from sales and $101,000 in cash payments during February. Prepare the cash budget for February assuming the company maintains a $5,000 minimum cash balance and will take a loan if necessary to maintain this balance. The company has no loans outstanding on February 1. (Negative cash balances, if any, should be indicated with minus sign.) SANTOS COMPANY Beginning cash balance Total cash avalabile Prelmary cash balance Loan actively Ending cash balance Loan balance, end of month

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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