Present the monthly and quarterly cash receipts

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Reference no: EM131068527

Exercise 5-3

Riverside, Inc. forecasts the following sales for the second quarter of 2015, as well as actual March sales:

March (actual)	April	May	June	2^nd Q. Total
$35,000	$40,000	$55,000	$60,000	$155,000

In addition:

The company makes 60% cash sales and 40% credit sales.

It collects all credit sales in the month after the sale.

The firm budgets $48,000 for monthly operating expenses (including $4,000 for depreciation).

The firm pays one-half of its expenses in the month incurred, and the remaining 50% in the next month. (Riverside, Inc. had $26,000 of accounts payable at the end of March).

Required:

Present the monthly and quarterly cash receipts budget for Riverside, Inc. in the template below.

Present the monthly and quarterly cash payments budget for Riverside, Inc. in the template below.

	April	May	June	2^nd Q
Cash sales
Credit sales collected
Cash receipts

Current month's payments
Payments from last month's purchases
Cash payments

Cash inflow (outflow)

Reference no: EM131068527

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