Reference no: EM133039140
Question - Havier Company developed the following data for the month of August.
Cash balance, August 1st $12,300
Cash sales in August 60,000
Credit sales for the month of:
June 40,000
July 30,000
August 50,000
Purchases for the month of:
July 45,000
August 40,000
Other expenses in August:
Salaries 32,500
Utilities 3,300
Depreciation 10,000
70% of credit sales are collected in the month of sale, 15% in the following month, and 10% in the second month following the sale.
25% of purchases are paid in the month of purchase and the remaining 75% in the following month.
100% of other expenses are paid in the month recorded.
Required -
1. Prepare a cash collections and cash payment schedule as well as a cash budget for the month.
2. Compute the total cash sales and collections on account for the month?
3. Compute the total cash available for the month?
4. Compute the payments for purchases during the month?
5. Compute the payments for other expenses during the month?
6. Compute the ending cash balance for the month?