This paper circulates around the core theme of 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 together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
The Doley Company has planned the following
sales for the next three months:
|
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.
Required
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.
