Prepare the cash budget of Louw Traders

Assignment Help Accounting Basics
Reference no: EM132604657

Question - The following is the budgeted information of Louw Traders: BUDGET 2020 Total Sales R March 900 000 April 1 050 000 May 1 140 000 June 1 200 000 Collections: 40% of sales are cash sales while 35% is collected one month after the sale and the remaining 25% is collected two months after the sale has taken place. Expenses: The expenses are expected to be maintained at 55% of the same month's sales. Payments: 75% of expenses are paid in cash and 25% are paid one (1) month after incurring the expense. Opening cash balance: The business opening May cash balance is R30 000 Minimum cash balance requirement: The business requires a minimum cash balance of R15 000.

Required - Prepare the cash budget of Louw Traders for the months of May and June 2020.

Reference no: EM132604657

Questions Cloud

Compute the amount of the initial investment : Sheffield Co. purchased some equipment 3 years ago. The company's required rate of return is 12%, Compute the amount of the initial investment
Find how much would pay for the stock : Find How much would you pay for the stock if you require a 10% rate of return? At the end of the sixth year it will pay a dividend of $45 and cease operations.
Determine what was the most recent dividend paid by company : The dividend yield of a stock is 9 percent. If the market price of the stock is $18 per share,What was the most recent dividend paid by the company?
Information Governance-IT Governance-Data Governance : Information Governance, IT Governance, Data Governance: What's the Difference? Briefly explain.
Prepare the cash budget of Louw Traders : The business opening May cash balance is R30 000 Minimum cash balance requirement: Prepare the cash budget of Louw Traders
What will be percent change in market price of bond : Shady Rack Inc. has a bond outstanding with 9 percent coupon, What will be the percent change in the market price of the bond?
Find what is the risk class of the customer : The Bank of Fast Loans uses the rating, The bank offers an annual rate of 15.07% to a customer. What is the risk class of the customer?
Healthcare strategic planning : What is meant by strategic group analysis, and why is this technique especially useful in healthcare strategic planning?
What is the company cost of equity capital for david ortiz : David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity, What is the company's cost of equity capital?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd