Question

8a-8c

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Problem 7: Calculating the Cash Budget. Here are some important figures from the budget of Omaha Omlettes, Inc., for the second quarter of 2005. June 930,000 420.000 Credit Sales Credit Purchases Cash Disbursements Wages, taxes, and exp. Interest Equipment purchases April 680.000 200.000 0 10,000 4.000 10,000 May 750.000 270.000 0 12,000 4.000 15,000 15,000 4,000 10.UUU O The company predicts that 6% of its credit sales will never be collected, 40% of its sales will be collected in the month of the sales, and the remaining 54% will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2005, credit sales were $520,000, and credit purchases were $160,000. Using this information, complete the following cash budget: April $300,000 May June Beginning Cash balance Cash Receipts cash collections from crdt Total cash available Cash Disbursements Purchases wages, taxes, and exp. interest equipment purchases Total cash disbursements Ending Cash balance 7a. For April, Total Cash Available is $ 852.800 7a. Points: 3.33 7b. For April, Total Cash Disbursements are $ 189.000 7b. Points: 3.33 7c. For April, the Ending Cash Balance is $ 108 800 7c. Points: 3.34 8a. For June, Total Cash Available is $ 8a. Points: 3.33 86. For June, Total Cash Disbursements are $ Bb. Points: 3.33 8c. For June, the Ending Cash Balance is $ 8c. Points: 3.34

Answer 1

	April	May	June
Beginning cash balance	300,000	668,800	1,105,000
Cash receipts
Cash collections	552,800	667,200	777,000
Total cash available	852,800	1,336,000	1,882,000
Cash disbursements
Purchases	160,000	200,000	270,000
Wages, taxes	10,000	12,000	15,000
Interest	4,000	4,000	4,000
Equipment purchases	10,000	15,000	-
Total cash disbursements	184,000	231,000	289,000
Ending cash balance	668,800	1,105,000	1,593,000
Cash collection schedule
	April	May	June
Credit Sales	680,000	750,000	930,000
40% in same month	272,000	300,000	372,000
54% in next month	280,800	367,200	405,000
Collections	552,800	667,200	777,000

в с р 1 April May June 2 Beginning cash balance 300000 =B12 =C12 3 Cash receipts 4. Cash collections =B19 =C19 =D19 5 Total cash available =B2+B4 =C2+C4 =D2+D4 6 Cash disbursements 7 Purchases 160000 200000 270000 8 Wages, taxes 10000 12000 15000 9 Interest 4000 4000 4000 10 Equipment purchases 10000 15000 11 Total cash disbursements =SUM(B7:B10) =SUM(C7:C10) =SUM(D7:010) 12 Ending cash balance =B5-B11 =C5-C11 =D5-D11 13 14 Cash collection schedule 15 April May June 16 Credit Sales 680000 750000 930000 17 40% in same month =B16*40% =C16*40% =D16*40% 18 54% in next month =520000*54% =B16*54% =C16*54% 19 Collections =B17+B18 =C17+C18 =D17+D18