Confine your analysis to given data

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Reference no: EM1376752

Q. Consider income statement in exhibit 7-12. Cash balance, May 31, 2004, is $15000. Sales proceeds are calculated as follows: 80% month of sales, 10% third month.

Accounts receivable are $40000 on May 31, 2004, consisting of $16000 from April sales also $ 24000 from May sales.

Accounts payable on May 31, 2004, are $145000. Raleigh Company pays 25% of purchases during month of purchase also remainder during subsequent. All operating expense requiring cash are paid during month of recognition. Insurance also property taxes are paid annually in December. Elucidate however, prepare a cash budget for June. Confine your analysis to given data. Ignore income taxes also o r possible items which might affect cash.

Reference no: EM1376752

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