A manufacturingcompany's budgeted income statement includes the followingdata:
| Data extracted from budgeted income statement |
Mar |
Apr |
May |
Jun |
| Sales |
$120,000 |
$90,000 |
$95,000 |
$100,000 |
| Commission expense (15% of sales) |
18,000 |
13,500 |
14,250 |
15,000 |
| Salaries expense |
30,000 |
30,000 |
30,000 |
30,000 |
| Miscellaneous expenselong dash-4% of sales |
4,800 |
3,600 |
3,800 |
4,000 |
| Rent expense |
3,600 |
3,600 |
3,600 |
3,600 |
| Utility expense |
1,900 |
1,900 |
1,900 |
1,900 |
| Insurance expense |
2,100 |
2,100 |
2,100 |
2,100 |
| Depreciation expense |
4,400 |
4,400 |
4,400 |
4,400 |
The budget assumes that60% of commission expenses are paid in the month they are incurred and the remaining40% are paid one month later. Inaddition, 50% of salary expenses are paid in the same month and the remaining50% are paid one month later. Miscellaneousexpenses, rent expense and utility expenses are assumed to be paid in the same month in which they are incurred. Insurance has been paid in advance for the year on January 1st.
Calculate total budgeted cash payments for selling and administrative expenses for the month of April.
Gamma Corp. has prepared a preliminary cash budget for the 3rd quarter as shown below:
| Cash Budget |
Jul |
Aug |
Sep |
| Beginning cash balance |
$32,000 |
$4,400 |
$6,900 |
| Plus: Cash collections |
49,400 |
51,000 |
44,600 |
| Cash available |
$81,400 |
$55,400 |
$51,500 |
| Less: Cash payments: |
|
|
|
| Purchases of inventory |
36,000 |
9,000 |
11,000 |
| Operating expenses |
41,000 |
30,500 |
30,900 |
| Capital expenditures |
0 |
9,000 |
7,700 |
| Ending cash balance |
$4,400 |
$6,900 |
$1,900
|
Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $52,000 in July, $50,000 in August, and $42,000 in September. Based on the new data, calculate the new projected cash balance at the end of July.