Question

Please fill in the 3 charts at the bottom for requirement 1, 2, and 3, based on the information in the problem at the top

The following information is from Tejas WindowTint's financial records. 41 Sales Purchases Month $80,000 74,e00 72,e00 75,000 April $52,000 May 43,000 31,000 49,000 June July 04:24:48 Collections from customers are normally 67 percent in the month of sale, 17 percent in the month following the sale, and 14 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 1 percent discount allowed on purchases paid for by the tenth of the following month. Purchasess for August are budgeted at $66,000, and sales for August are forecasted at $72,000. Cash disbursements for expenses are expected to be $14,600 for the month of August. The company's cash balance on August 1 was $39,000. Print Required: 1. Prepare the expected cash collections during August. 2. Prepare the expected cash disbursements during August. 3. Calculate the expected cash balance on August 31. X

Answer 1

Expected Cash Collections Month Sales Percentage 72000 75000 Collections August July June 67% 48240 12750 17% 14% 10080 72000 Total 71070 219000 Expected Cash Payments Particulars July purchases Less : Discount Net purchases Cash expenses Amount 49000 490 48510 14600 Total Payments 63110 Cash Budget for Augsut Particulars Opening Balance Cash Collections Disbursements Amount 39000 71070 -63110 Closing Balance 46960