Question

PLEASE HELP I HAVE TO HAVE THIS DONE SOON Cash budget—Basic Grenoble Enterprises had sales of $50,200 in March and $59,800 in April. Forecast sales for​ May, June, and July are $70,300​, $79,900​, and $100,500​, respectively. The firm has a cash balance of $5,100 on May 1 and wishes to maintain a minimum cash balance of $5,100. Given the following​ data, prepare and interpret a cash budget for the months of​ May, June, and July.

(1) The firm makes 16% of sales for​ cash, 62% are collected in the next​ month, and the remaining 22% are collected in the second month following sale.  

​(2) The firm receives other income of $1,900 per month.  

​(3) The​ firm's actual or expected​ purchases, all made for​ cash, are $50,000​, $70,500​, and $80,400 for the months of May through​ July, respectively.  

​(4) Rent is $3,300 per month.  

​(5) Wages and salaries are 8% of the previous​ month's sales.  

​(6) Cash dividends of $2,600 will be paid in June.  

​(7) Payment of principal and interest of $3,600 is due in June.  

​(8) A cash purchase of equipment costing $6,100 is scheduled in July.  

​(9) Taxes of $6,400 are due in June.

Question

March April May Disbursements Purchases $ 50,000 22nnl

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

By comditional arrange insert Delete Format 2 Clear some time 556 ACCOUNTS latest - Microsoft Excel (Product Activation Failed) File Home Insert Page Layout Formulas Data Review View Add-Ins - 2x % Cut Σ AutoSum : A Calibri -11AA = = = Dr Wrap Text General Ea Copy Fill 2 m Paste BI U D- DA SF Merge Merge & Center - Center $ % % Format Painter , 4:0 .00 :.: Conditional Format Cell Insert Delete Format Sort & Find & Formatting as Table Styles 2 Clear Filter Select Clipboard Font Alignment Number Styles Cells Editing DR575 - for DI D DK DL DM DNDODPDQDR DSDT DU DV GRENOBLE 557 558 MAR APR MAY JUNE JULY 559 TOTAL SALES 50200 59800 70300 79900 100500 560 CASH SALES (16% OF SALES) 8032 9568 11248 12784 16080 561 LAG 1 MONTH (62% OF SALES) 31124 37076 43586 49538 562 LAG 2 MONTH (22% OF SALES) 11044 13156 15466 563 OTHER INCOME 1900 1900 1900 564 STEP 1 TOTAL CASH RECEIPTS 61268 71426 82984 565 566 DISBURSEMENTS MAR APR MAY JUNE JULY 567 PURCHASES 50000 70500 80400 568 RENT 3300 3300 3300 569 WAGES & SALARIES (8% OF 59800)----> 4784 5624 6392 570 DIVIDENDS 2600 571 PRINCIPAL & INTEREST 3600 572 PURCHASE OF NEW EQUIPMENT 6100 573 TAXES DUE 6400 574 STEP 2 TOTAL CASH DISBURSEMENTS 58084 92024 96192 575 576 FIFO CASH BUDGET budget 45 days cycle ROE, BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss SALES BUDGET dupont DIFF ANALYSIS ovel Rea ferences | THE TU 120% = 0 (+) DO 4 * 4 OENG 08-11-2019

ACCOUNTS latest - Microsoft Excel (Product Activation Failed) View Add-Ins File Home Insert Page Layout Formulas Data Review - 2x % Cut Calibri A = = = V General E Copy Paste Format Painter Clipboard 11 A D- DA Wrap Text Merge & Center - BI U $ % , :.: Σ AutoSum : A Fill Sort & 2 Clear Filter Editing Formatting as Table Styles Styles Find & Select Font Alignment Number Cells - DM591 DI D for DK DL DM DNDODPDQ DR DS Formula Bar DU DV A B A-B ADD 575 576 577 578 579 580 581 582 583 584 585 586 587 588 589 TOTAL CASH RECEIPTS TOTAL CASH DISBURSEMENTS NET CASH FLOW BEGINNING CASH ENDING CASH MINIMUM CASH REQUIRED TOTAL FINANCING EXCESS CASH BALANCE 61268 71426 58084 92024 3184 -20598 5100 5100 8284 - 15498 5100 5100 0 20598 3184 0 [8284-5100] 82984 96192 - 13208 5100 -8108 5100 13208 [8108 +5100] 0 HIGHEST FINANCING REQUIRED = 20598 SO THE FIRM SHOULD ESTABLISH AT LEAST A CREDIT LINE OF 20598 590 591 592 593 594 595 FIFO budget 45 days cycle ROE, BV MV ratio VARIANCE BEP, OL FL ratios DETROIT float B-S profit loss CASH BUDGET ferences Rea -_- SALES BUDGET dupont DIFF ANALYSIS ovel BOU 120% ODER 1990 * ENG 08-11-2019