Accounting Assignment | College Homework Help

v2.cengagenow.com CengageNOWV2 Online Teaching and learning resource from Cengage Learning MindTap – Cengage Learning Calculator Cash Budget The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following a. Cash balance on June 1 is $786. b. Actual sales for April and May are as follows: May April Cash sales $18,000 $10,000 28,900 Credit sales 35,000 Total sales $38.900 $53,000 c. Credit sales are collected over a 3-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible. d. Inventory purchases average 72% of a month’s total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month. e. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner Rent is $4.800 per month 9. Taxes to be paid in June are $6,780 The owner also tell you that he expects cash sales of $18,600 and credit sales of $54,000 for June. No minimum cash balance is required. The owner of the company doesn’t have access to yhort-term loans. Required: 1. Prepare a cash budget for June. Include supporting schedules for cash collections and cash payments. Round calculations and final answers to the nearest dollar Be sure to enter percentages as whole numbers Cash Budget For June Beginning cash balance Collections: < Previous Next > All work saved Email Instructor Save and it Submit Assignment for Grading bers Cash Budget Collections Cash sales May Cred sales Acredits Total cash available Inventory purchases Current month Previous Next > Email rotor Save and be sent mere ter Gratis 8 9 0 MindTap – Cengage Learning CangageNOWV2 Online teaching and learning resource from Cengage Learning Calculator Current month May credit sales April credit sales Total cash available Les disbursements: Inventory purchases: Current month Prior month Salaries and wages Rent Taxes Total cash needs Excess of cash available over needs 2. Conceptual Connection: Did the business show a negative cash balance for June? < Previous Next All work saved. Email Instructor Save and Exit Submit Assignment for Gr

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