Reference no: EM133502727

Case: Regular and Short Company developed the following data for the preparation of the July 2023 budget:

Expected Beginning Cash balance July 1: $12,300

Expected total sales in July: $120,000. Sales are 25% cash and 75% on account. Credit sales are collected as follows:

30 percent in the month of sale, 60 percent in the following month, and 10 percent in the second month following the sale.

Actual credit sales for the previous months were:

June, $60,000

May, $50,000 and

April $40,000

The expected purchase of inventory for July is $45,000. Actual June purchases were $34,000, May $32,000, and April $40,000. 20% of the purchases are paid in the month of purchase, 70% in the following month, and the remainder in the second month following purchases.

Expected Expenses for July are:

Salaries $28,400,

Utilities $1,900, and

Selling and administrative expenses will be $47,000 of which depreciation on the building is $4,000.

Required:

Question 1: Calculate the anticipated cash receipts from sales in July.

Question 2: Calculate the anticipated total cash available in July.

Question 3: Calculate the July cash payments for purchases.

Question 4: Calculate the anticipated cash balance on July 31.