Solution-Compute budgeted cash disbursement during august

Compute budgeted cash disbursement during august

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Reference no: EM132640182

The following information is from XYX corp. financial records.

Month Sales COGS

April $72,000 $42,000

May $66,000 $48,000

June $60,000 $36,000

July $78,000 $49,000

Collections from the customer are normally 70%in the month of sale , 20% in the month following the sale, and 9% in the second month following the sale .The balance is expected to be uncollectible .All purchases are on account. Management takes full advantage of the 2% cash discount allowed on purchases paid for by the tenth of the following month. COGS for the August is budgeted at $65,000, and sales for August are forecasted at $66,000. The expected beginning and ending balances of finished goods inventory for the month of July are $15,000 and $20,000, respectively. Cash disbursements for other expenses are expected to be $12,200 for the month of August. The Company's cash balance on August 1st was $22,000.

Problem 1: Compute expected (budgeted) cash disbursement during August

Reference no: EM132640182

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Compute budgeted cash disbursement during august

Reference no: EM132640182

Reference no: EM132640182

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