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Question - A firm expects to achieve the following level of sales, to make the following purchases of raw materials, and to make the following payments for indirect expenses for the first 4 months of the year. All sales and purchases of raw materials are on credit, and are paid for in the following month. Indirect expenses are paid for in the month they are incurred.
Sales in December totalled $78 and purchases of raw materials in December totalled $54. The opening cash balance at the beginning of January was $110. What is the budgeted closing cash balance at the end of April?
Jan
Sales: 73
Purchases of materials: 51
Indirect expense: 12
Feb
Sales: 77
Purchases of materials: 56
Indirect expense: 19
Mar
Sales: 71
Purchases of materials: 57
Indirect expense: 17
Apr
Sales: 72
Indirect expense: 14
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