| January | February | March | |
| Budgeted Sales | $40,000 | $50,000 | $70,000 |
Sales are made 20% for cash and 80% on account. From experience, the company has learned that a month’s sales on account are collected according to the following pattern:
| Month of sale | 60% |
| First month following sale | 30% |
| Second month following sale | 8% |
| Uncollectible | 2% |
The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000.
Need Help Writing an Essay?
Tell us about your assignment and we will find the best writer for your paper.
Write My Essay For MeRequired
a) Compute the budgeted cash receipts for March. Rember to think in terms of when actual cash is planned to be received. If you are not going to receive the cash it is not part of the budget. Also pay close attention to cash vs credit sales
b) The following additional information has been provided for March:
| Inventory purchases (all paid in cash in March) | $28,000 |
| Operating Expenses (all paid in cash in March) | $40,000 |
| Depreciation expense for March | $5,000 |
| Dividends paid in March | $4,000 |
Prepare a cash budget in good form for the month of March, using this information and the budgeted cash receipts you computed for part a) above. The company can borrow in any dollar amount and will not pay interest until April
Welcome to one of the most trusted essay writing services with track record among students. We specialize in connecting students in need of high-quality essay writing help with skilled writers who can deliver just that. Explore the ratings of our essay writers and choose the one that best aligns with your requirements. When you rely on our online essay writing service, rest assured that you will receive a top-notch, plagiarism-free A-level paper. Our experienced professionals write each paper from scratch, carefully following your instructions. Request a paper from us and experience 100% originality.
From stress to success – hire a pro essay writer!
