Sales will be collected in the month of the sale

Assignment Help Financial Management

Reference no: EM131546398

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2015:

The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2015, credit sales were $192,000 and credit purchases were $132,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.)

April May June

Beginning cash balance $125,000

Cash collection for credit sales for April May June

Total Cash Available April May June

Purchases April May June

Wages, Taxes and Expense April May June

Interest April May June

Equipment Purchases April May June

Total Cash Disbursements April May June

Ending cash balance April May June

Find the figures for each month.

Reference no: EM131546398

Questions Cloud

How much will accounts receivable change next year : Given this change in the DSO, by how much will Accounts Receivable change next year?

Along with an inventory turnover ratio : ABC expects sales of $200,923,000 and a gross profit margin of 25.8 percent this year, along with an Inventory Turnover Ratio (COGS Basis) of 6.10.

About the freemium business model : The case and articles about Spotify talked a lot about the "Freemium" business model that is popular today.

Is the fund currently beating the market : Is the fund currently beating the Market? Explain. A such that the average excess return on this new portfolio exceeds that of the market?

Sales will be collected in the month of the sale : The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale,

Briefly describe sleep apnea and narcolepsy : A police officer is interviewing a young child about a possible instance of child abuse. What should the interviewer do and avoid doing?

Assuming you make the payments as agreed : Assuming you make the payments as agreed what is the total amount of interest you will end up up paying over the four years?

What is caogen or grassroots culture in china : what is "Caogen" or grassroots Culture in China;

What is the operating cash flow for project : What is the operating cash flow for this project? What is the IRR?

User Account

All Pages