The cash balance on june 1 is 4000sales for may and june

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Reference no: EM13587180

SABA Enterprises needs a cash budget for the month of June. The following information is available:

The cash balance on June 1 is $4,000.Sales for May and June are $50,000 and $40,000, respectively. Cash collections on sales are 40 percent in the month of sale and 50 percent in the month after the sale; 10 percent of sales are uncollectible.

General expenses budgeted for June are $20,000 (depreciation represents $1,000 of this amount).

Inventory purchases will total $40,000 in May and $30,000 in June. The company pays for half of its inventory purchases in the month of purchase and for the other half the month after purchase.

The company will pay $5,000 in cash for office furniture in June. Sales commissions for June are budgeted at $6,000.The company maintains a minimum ending cash balance of $4,000 and can borrow from the bank in multiples of $100. All loans are repaid after 60 days.

Prepare a cash budget for SABA Enterprises for the month of June. Enter all amounts positive numbers. If an amount is zero, enter "0".

Reference no: EM13587180

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