Chapter 8, Problem 31P

To determine

(1)

Expected cash collection for the quarter.

Introduction:

A budget is a financial statement that includes the fore casted items for a particular period of time. Fore casted items include revenue, sales, profit and any other item that budget maker wants to include.

To determine

(2)

The merchandise purchases of budget.

To determine

(2a)

Cash disbursement for merchandise inventory.

To determine

(2b)

Cash Disbursement for selling and administrative expenses.

To determine

(3)

Cash budget

To determine

(4)

To prepare:

The income statement of H for the Quarter ending March 31.

To determine

(5)

To prepare:

Balance sheet of H Company.