Sales are 40 cash and 60 credit the collection pattern for

Assignment Help Accounting Basics

Reference no: EM13611203

Sweeny Co. is preparing a cash budget for the second quarter of the coming year. The following data have been foretasted: April May Sales $150,000 $157,500 Merchandise purchases 107,000 112,400 Operating expenses: Payroll 13,600 14,280 Advertising 5,400 5,700 Rent 1,500 1,500 Depreciation 7,500 7,500 End of April balances: Cash 40,000 Bank loan payable 16,000 Additional data:

(1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000.

(2) Purchases are all on credit, with 40% paid in the month of purchase and the balance paid in the following month.

(3) Operating expenses are paid in the month they are incurred.

(4) A minimum cash balance of $40,000 is required at the end of each month.

(5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made whenever excess cash is available.

Question: Prepare the company's cash budget for May. Show the ending loan balance at May 31.

Reference no: EM13611203

Questions Cloud

A what is the approximate ductility el of a brass alloy : a what is the approximate ductility el of a brass alloy that has a yield strength of 275 mpa? what is the tensile

A jeweler needs to electroplate gold atomic mass 19697 u : a jeweler needs to electroplate gold atomic mass 196.97 u onto a bracelet. he knows that the charge carriers in the

Determine the impulse of the golf club on the ball neglect : a man hits a 50g golf ball such that it leaves the tee at an angle of 40 degrees with the horizontal and strikes the

Ms construction company contacted to construct a factory : ms construction company contacted to construct a factory buildingfor 525000. construction started during 2008 amp was

Sales are 40 cash and 60 credit the collection pattern for : sweeny co. is preparing a cash budget for the second quarter of the coming year. the following data have been

According to the centers for medicare amp medicaid services : according to the centers for medicare amp medicaid services 16 of nursing homes received five stars in overall ratings

A wind is blowing that results in a net horizontal force on : an airplane flies 120 km at a constant altitude in a direction 30.0deg north of east. a wind is blowing that results in

Could you please describes the courses of action the ima : could you please describes the courses of action the ima recommendsin resolving ethical conflict? other than what is

The turbine exhausts to atmospheric pressure if both the : a gas turbine takes in 250000 lbmhr of air at 80f and compresses it to 6 atmospheres. the combustion of gas adds

User Account

All Pages