Complete the cash budget, Here are some important figures

Complete the cash budget

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Reference no: EM131459063

Here are some important figures from the budget of Cornell, Inc. for the second quarter of 2013:

April May June

Credit sales $486,000 $549,000 $586,8000

Credit purchases 240,1000 2888,100 286, 200

Cash disbursements

Wages, taxes, and expenses 62, 7000 86, 8000 95, 1000

Interest 17, 600 17, 600 17, 6000

Equipment purchase 127, 800 148,800

The company predicts that the 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2013, credit sales were $459,000 and credit purchases were $248,400. Using the information, complete the following cash budget.

Beginning cash balance (342,000) April May June

Cash receipts

Cash collections from credit sales

Total cash available

Cash disbursements

Purchases

Wages, taxes, and expenses

Interest

Equipment purchases

Total cash disbursements

Ending balance

Reference no: EM131459063

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