Question

I am working on this Cash budget but cannot seem to find out where the Beginning cash balance is coming from & the Negative amounts. Please help

in Month May June Quarter o $ $ $ April 7,800 62,600 70,400 $ 72,000 $ 89,000 $ 223,600 $ $ 62,625 15,920 $ $ 57,675 20,420 $ $ $ $ $ 7 Beginning Cash balance 8 Add Cash Collections 9 Total Cash Avaliable LO Less Cash Disbursments: 11 Inventory 12 Expenses 13 Equipment 14 Total Cash Disbursements 15 Excess(dificiency) of cash 16 Financing: 17 Borrowings 18 Repayments 19 Intrest 20 Total Financing 21 Ending Cash Balance 52,050 15,020 1,800 68,870 1,530 $ $ $ 172,350 51,360 1,800 $ 3,000 $ 7,000 $ 10000 230 10000 10,000 10000 230 230 $ $ 3,000 4,530 $ 7,000

Answer 1

Answer to Part 1. | Cash Sales Collection from Credit Sales Total Cash Collections Schedule of Expected Cash Collections April May 41400 44400 21200 27600 62600 72000 June 59400 29600 89000 Quarter 145200 78400 223600 Answer to Part 2 Budgeted Cost of goods sold Add: Desired Ending Inventory Total Needs Less: Beginning Inventory Required Purchases Merchandise Purchases Budget April May 51750 55500 44400 59400 96150 114900 41400 44400 54750 70500 June 74250 30000 104250 59400 4 4850 Quarter 181500 30000 211500 41400 170100 Schedule of Expected Cash Disbursements - Merchandise Purchases April May June March Purchases 246 75 April Purchases 27375 27375 May Purchases 35250 35250 June Purchases 22425 Total Disbursements 52050 62625 57675 Quarter 24675 54750 70500 22425 172350 Cash Disbursements for Expenses April May Commission 8280 8880 Rent 2600 2600 Other Expenses 4140 4440 Total Cash Disbursements for Expenses | 15020 15920 June 11880 2600 5940 20420 Quarter 29040 7800 14520 51360

April 7800 62600 70400 May 4530 72000 76530 June 4985 89000 93985 Quarter 7800 223600 231400 62625 57675 Answer to Part 3. Cash Budget Beginning Cash Balance Add: Cash Collections Total Cash Available Less: Cash Disbursements For Inventory For Equipment For Expenses Total Cash Disbursements Excess (Deficiency) of Cash Financing: Borrowings Repayments Interest Total Financing Ending Cash Balance 52050 1800 150 20 688 70 1530 15920 78545 -2015 20420 78095 15890 172350 1800 51360 225510 5890 7000 3000 0 -10000 -230 -10230 5660 10000 -10000 -230 -230 5660 3000 4530 7000 4985

242000 Answer to Part 4. Shilow Company Income Statement For the Quarter Ended June 30 Sales Cost of Goods sold Beginning Inventory 41400 Purchases 170100 Goods available for Sale 211500 Ending Inventory 30000 Cost of Goods sold Gross Profit Selling and Administrative Expenses: Commission 29040 Rent 7800 Other Expenses 14520 Depreciation 2943 Total Selling and Adminitrative Expenses Net Operating Income Interest Expense Net Income 181500 60500 54303 6197 230 5967

Answer to Part 5. Shilow Company Balance Sheet June 30 Assets Current Asstes: Cash 5660 Accounts Receivable 39600 Inventory 30000 Total Current Assets Building and Equipment, net Total Assets Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Stockholders' Equity: Common Stock 150000 Retained Earnings 32492 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 75260 129657 204917 22425 182492 204917