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a.
Introduction:
Cash collection schedule:
A cash collection schedule refers to the amount which is receivable for the business enterprise in different time periods.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 1
To prepare: A schedule of expected cash collections for April, May, and June, and the quarter in total.
b.
Introduction:
Merchandise purchases budget:
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 2
To prepare: (a) A merchandise purchases budget for April, May, and June and (b) a schedule of expected cash disbursements for merchandise purchases for April, May, June, and Quarters in total.
c.
Introduction:
A cash budget refers to the forecasted
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 3
To prepare: A cash budget for April, May, June, and Quarters in total.
d.
Introduction:
Cash budget:
A cash budget refers to the forecasted cash flow of a business enterprise in a particular time period.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 4
To prepare: A brief memorandum for the company’s president that shows how his revised assumptions affect the cash budget.
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Fundamentals of Financial Management, Concise Edi...FinanceISBN:9781285065137Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
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