Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

Q1) Grenoble Enterprises had sales of $50,000 in March and $60,000 in April. Forecast sales for May, June, and July are $70,000, $80,00, and $100,000, respectively. Firm has a cash balance of $5,000 on May 1 and wants to sustain a minimum cash balance of $5,000. Provided following date, create and interpret cash budget for months of May, June, and July.

(1) Firm makes 20% of sales for cash, 60% are collected in next month, and remaining 20% are collected in second month following sale.

(2) Firm receives other income of $2,000 per month

(3) Firm's actual or expected purchases, all made for cash, are $50,000, $70,000, and $80,000 for months of May through July, respectively.

(4) Rent is $3,000 per month

(5) Wages and salaries are 10% of previous month's sales.

(6) Cash dividends of $3,000 will be paid in June.

(7) Payment of principle and interest of $4,000 is due in June

(8) Cash purchase of equipment costing $6,000 is scheduled in July

(9) Taxes of $6,000 are due in June

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920920

Have any Question? 


Related Questions in Accounting Basics

I need help with a t-chart account with the following1

I need help with a T-Chart Account with the following: 1. Received $10,000 contribution from Bill London, owner, in exchange for capital. 2. Paid utilities expense of $400. 3. Paid the liability from July 5 (Purchased eq ...

Bull what does it mean to create a culture of honesty

• What does it mean to create a "Culture of Honesty, Openness, and Assistance?" Give an example from an organization with which you have been affiliated. • Codes of Conduct and Conflict of Interest Forms are often called ...

1 what are the three classifications of restrictions of

1. What are the three classifications of restrictions of retained earnings, and how are such restrictions normally reported on the financial statements? 2. Indicate how prior period adjustments would be reported on the f ...

Problem - selected account balances for hulse company at

Problem - Selected account balances for Hulse Company at January 1, 2014, are presented below. Accounts payable $13,376 Accounts Receivable 21,288 Cash 17,093 Inventory 12,796 Hulse's sales journal for January shows a to ...

Practice questionswhat are the main problems associated

Practice questions: What are the main problems associated with strategic management accounting?

Why do organizations have internal audits compliance audits

Why do organizations have internal audits, compliance audits, or operational audits performed? Provide examples of what type of organization might have each of these audits and for what purpose? Who would want this infor ...

Question part one what are the differences between a direct

QUESTION PART ONE: What are the differences between a direct cost and an indirect cost? Which is the more difficult cost to track? Why? How do indirect costs affect the cost of a product? Should indirect costs be include ...

Question 1 75000 year needed during retirementretirement

Question 1. $75,000 /year needed during retirement Retirement will last 25 years 30 years until retirement 6.0% return before and during retirement 3.25% inflation rate - Use the present value of an annuity (annuity due) ...

The howard leasing company is a private held medium-size

The Howard Leasing Company is a private held, medium-size business that purchases school busses and leases them to school districts, curses, charitable organizations, and other businesses. to better serve its customers a ...

In the citation schusters express inc 66 tc 588 1976 affd

In the citation Schuster's Express, Inc., 66 T.C. 588 (1976), aff'd 562 F.2d 39 (CA-2, 1977), nonacq., to what do the 66, 39, and nonacq. refer? • Is there an automatic right to appeal to the U.S. Supreme Court? If so, w ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate