Prepare a cash budget for the month of december

Reference no: EM131507757

Question: You have the following information about a restaurant in Year 0007:

¦ Actual sales revenue in November was $80,000.

¦ Actual purchases (cost of sales) in November was $30,000.

Sales revenue will be 40% cash. Credit card sales revenue is 60% of sales, of which 96% is collected in the month of sales; the remaining 4% is collected early in the following month. Purchases of inventory, 20% is paid in the month of purchase and the remaing 80% is paid in the month following the purchases. The condensed budgeted income statement for December, Year 0007, follows:

The wages and operating expenses included in the budgeted income statement will be paid in December, Year 0007. Rent was prepaid in January for the entire year. Prepare a cash budget for the month of December, Year 0007. November ending cash is $4,800.

Reference no: EM131507757

Questions Cloud

Calculate the ending cash balance for the month of february : The following is income statement information of a restaurant for the first two months of operation. Of the sales revenue, 86% is collected in cash.

Underlying causes of the great depression : What were the differences and the similarities in the underlying causes of the great depression and the great recession?

What is the most important method of heat transfer and why : In your opinion, what is the most important method of heat transfer and why? In your opinion, which form of heat transfer is most useful for human life

Derive the lm curve : Derive the LM curve. Why is it upward sloping? Under what conditions will it be vertical and horizontal?

Prepare a cash budget for the month of december : Sales revenue will be 40% cash. Credit card sales revenue is 60% of sales, of which 96% is collected in the month of sales; the remaining 4% is collected early.

Determining the invariance proposition : Discuss the ‘invariance proposition' with regard to a two-team league, where a team's revenue depends solely on its market size and its win probability

Uncertainty and the welfare economics of medical care : "Summarize the key points of Kenneth Arrow's paper, "Uncertainty and the Welfare Economics of Medical Care".

Gains and losses of international trade : What are the gains and losses of international trade? What happens when tariffs are imposed, in terms of the importing and exporting countries?

Calculate the motel ending bank balance at december : On December 31, 0007, a small motel has a bank balance of $7,100. On that same date its balance sheet showed that it had a bank loan payable of $73,900.

User Account

All Pages