Accts receivable - 860000 of which 600000 will be collected

Reference no: EM13485556

Whooper plans the following for the upcoming quarter:
Month Sales: Oct - $3,000,000.00 Nov - $3,450,000.00 Dec-$4,200,000.00

The company projects cash collections a payments as follows:
Sales 10% cash, 30% collected current month, 70% month after sale

Cost of Goods Sold
Variable Cost 36% of sales

Fixed $300,000 per month incl $50,000 depreciation expense

Operating Expense
Variable Selling 10% of sales
Variable Admin 6% of sales

Fixed Selling and Admin expense $80,000 per month incl $10,000 depreciation

Variable costs are paid 70% in month incurred and 30% the following month

Fixed costs are paid monthly as they are incurred

In December an insurance payment of $20,000 is due

Accts Receivable - $860,000 of which $600,000 will be collected in Oct and the remainder in Nov

Accts Payable on Oct 1 is $400,000 and are expected to be paid in Oct

Cash on hand on Oct 1 is $600,000

Minimum cash is $100,000; the company borrows at $100,000 increments at 1% monthly

Prepare a cash budget for the month of October (only) based on the above

Reference no: EM13485556

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