Solution:
1.)Expected Cash Collections for December:
Ashton Company
Schedule of Expected Cash Collections
December cash sales | $82,600 |
Collections on account: | |
October sales :($397,000 × 22%) | $87,340 |
November sales:($522,000 × 57%) | $297,540 |
December sales:($598,000 × 16%) | $95,680 |
Total cash collections | $563,160 |
2)
Ashton Company
Schedule of Expected Cash Disbursements:
Payment to supplies: | |
November purchases ( accounts payable) | $163,000 |
December purchases($282,000 × 31%) | $87,420 |
Total cash payments | $250,420 |
3.)
Ashton Company
Cash Budget
For the Month of Decemeber
Beginning cash balance | $39,000 | |
Add collections from customers | $563,160 | |
Total cash available | $602,160 | |
Less: cash disbursements: | ||
Payment to suppliers for inventory | $250,420 | |
Selling and administrative expenses | $377,000 | |
New web server | $78,000 | |
Dividends paid | $9,000 | |
Total cash disbursements | $714,420 | |
Excess (deficiency) of cash available over disbursements | $(112,260) | |
Financing: | ||
Borrowing | $131,260($112,260+$19,000) | |
Repayments | 0 | |
Interest | 0 | |
Total financing | $131,260 | |
Ending cash balance | $19,000 | |
* Selling and administrative expenses = $429,000 - $52,000
= $377,000
You have been asked to prepare a December cash budget for Ashton Company, a distributor of...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $53,200. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $56,600. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in...
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You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $43,200. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in...
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You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company’s operations: The cash balance on December 1 is $41,000. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 68,400 $ 87,400 $ 95,800 Sales on account $ 415,000 $ 614,000 $ 692,000 Sales on account are collected over a three-month period as follows:...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $58,600. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October November December $ 73,200 $ 78,000 $ 92,000 $ 485,000 $ 568,000 $ 663,000 Sales on account are collected over a three-month period...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $41,000. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October November December $ 68,400 $ 87,400 $ 95,800 $ 415,000 $ 614,000 $ 692,000 Sales on account are collected over a three-month period...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $51,400. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October November December $ 71, 600 S 80,200 $ BB, 600 $ 120,000 $$80,000 $ 652,000 Sales on account are collected over a three-month...