Seventh: Items Quarter 1 Quarter 2 Quarter 3 Quarter 4 Gross sales 500,000 600,000 400,000 300,000 Gross purchases 250,000 150,000 200,000 180,000 Paid cash equipment ----- ----- 180,000 ----- Paid cash utilities ----- 500,000 ----- ----- Salary and wages 21000 26000 24000 ----- Interest credit 10,000 5000 10,000 35000 Interest debit 8000 6000 19000 4000 Overhead expenses 4000 3000 3500 3200 Minimum reserve of cash 300,000 300,000 300,000 300,000 If you know that: -The company can borrow money when required with the loan’s interest rate of 10% of the amount borrowed during the period. There are 20% of gross sales are considered as cash Credit sales are collected as follows: 70% in the same quarter of sales, 20% in the following quarter, and 10% in the quarter after. Overhead expenses include 3000 EGP depreciation/ There are 10% of gross purchases are considered as cash Debit purchases are paid as follows: 60% in the same quarter of purchases, 25% in the following quarter, and 15% in the quarter Eighth: Balance Sheet (B.S.) of the 31/12/2021 Assets Liabilities & Owner's Equity Cash 200,000 Loan Accounts payable 100,000 50,000 A/R 20,000 Capital 195000 Truck 29000 Equipment 36000 Depreciation (3000) Materials 3000 Merchandise 60,000 Total Assets 345000 Total Liabilities and O'E 345000 Required: Prepare cash budget

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

Related questions

Question

Seventh:

If you know that:

-The company can borrow money when required with the loan’s interest rate of 10% of the amount borrowed during the period.

There are 20% of gross sales are considered as cash
Credit sales are collected as follows: 70% in the same quarter of sales, 20% in the following quarter, and 10% in the quarter after.
Overhead expenses include 3000 EGP depreciation/
There are 10% of gross purchases are considered as cash
Debit purchases are paid as follows: 60% in the same quarter of purchases, 25% in the following quarter, and 15% in the quarter

Eighth:

Balance Sheet (B.S.) of the 31/12/2021