Prepare monthly cash budget from this following information.. ExevciseL Fetuu Tr; Accountant for TM Hd,Jriis looking fora budgetfor askıng for help andthe finaucialan assistance to helpfur the hrst quarter of 202I. He camehimprepavefirstquarteryou agreed.PloThe following informationCompanywere iolle tedfrom thepast* From experience, 80% the monthlybudgefed sales are on cvedit.of* 70% of the redit salemonth of sales, Is% areave collected within thecollectd within themonthfollowingthe sales12% are collectedin the second month the sales andfollowing3이0 .aveun collected.* All purchases ave made an cvedit and that theCompany pays 780% within the month of thepurchaso where thethe remain balancemonth after the purchase*. Selling expenses ave expected to be # 8200.Aduin expensewhich include monthly de f $1000Finan p M,Companyis paidveceivesin the following2% discovadmonthexpected to be H 7400 pev,pernaveVApveeiation ofexp ave peexpected to be 2400 per montherp (except depreciatin)All selling admin, flnancialare paid for when incuwed.À The campany is planmg toeluring Tanuary doa1 at a cost of pa3,a0 Apurchese equipment2021 at a cost of p23,ao. Ad Theloanpayable $ie,eo will be vepaid duving Feb * The company anticipated eash at bank balat Jan 20a1 IS $27000Estimatedsales and purchasesfollow.ave asMonthNov 2020Sales (s)Purchases ()30,00020,000DecJan 202110, 00014,000207020,000ఇంగ్రంం28,000Feb22,00024,00012000Mav202113,000vequived toprepare a wouthly cash bucgef for the firstyearYouuse the uf collected toavequarter of the2021

A cash budget is prepared so that, availability or use of cash can be assessed in advance, and…

Answered: * The company cash at bank bal…

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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Prepare monthly cash budget from this following information..

Exevcise
L Fetuu Tr; Accountant for TM Hd,
Jri
is looking for
a budget
for askıng for help and
the finaucial
an assistance to help
fur the hrst quarter of 202I. He came
him
prepave
first
quarter
you agreed.
Plo
The following information
Company
were iolle ted
from the
past
* From experience, 80% the monthly
budgefed sales are on cvedit.
of
* 70% of the redit sale
month of sales, Is% are
ave collected within the
collectd within the
month
following
the sales
12% are collected
in the second month the sales and
following
3이0 .ave
un collected.
* All purchases ave made an cvedit and that the
Company pays 780% within the month of the
purchaso where the
the remain balance
month after the purchase
*. Selling expenses ave expected to be # 8200.
Aduin expense
which include monthly de f $1000
Finan p M,
Company
is paid
veceives
in the following
2% discovad
month
expected to be H 7400 pev,
pern
ave
VA
pveeiation of
exp ave pe
expected to be 2400 per month
erp (except depreciatin)
All selling admin, flnancial
are paid for when incuwed.
À The campany is planmg to
eluring Tanuary doa1 at a cost of pa3,a0 A
purchese equipment
2021 at a cost of p23,ao. A
d The
loan
payable $ie,eo will be vepaid duving Feb

* The company anticipated eash at bank bal
at Jan 20a1 IS $27000
Estimated
sales and purchases
follow.
ave as
Month
Nov 2020
Sales (s)
Purchases ()
30,000
20,000
Dec
Jan 2021
10, 000
14,000
2070
20,000
ఇంగ్రంం
28,000
Feb
22,000
24,000
12000
Mav
2021
13,000
vequived to
prepare a wouthly cash bucgef for the first
year
You
use the uf collected to
ave
quarter of the
2021

Definition Definition Estimate of an organization's cash flow for a future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future.

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