Question

Jasper Company has sales on account and for cash. Specifically, 59% of its sales are on account and 41% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $516,000 for April, $526,000 for May, and $551,000 for June. The beginning balance of Accounts Receivable is $298,300 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June. April May June 41% Cash sales Sales on account 59% Total sales $ 0 $ 0 $ 0 JASPER COMPANY Schedule of Cash Receipts For April, May, and June April Cash receipts from: Cash sales Collection of accounts receivable May June Total budgeted cash receipts

Answer 1

Question 1

		April	May	June
Cash Sales	41%	211560	215660	225910
Sales on Account	59%	304440	310340	325090
Total Sales		516000	526000	551000

Sales allocated on the basis of percentage given

Schedule of Cash Receipts
		April	May	June
Cash Receipts from:
Cash Sales		211560	215660	225910
Collection of Account Receivable		298300	304440	310340
Total Budgeted cash receipts		509860	520100	536250

Cash Sales is as per previous schedule

Collection as said in question is made in following month so opening balance of receivables of month of april will be calculated in April and Credit sales of April will be collected in month May and Credit sales of May will be collected in month June.

Question 2

CALCULATION OF CASH PAID FOR PURCHASE OF RAW MATERIAL
		August	September
Purchase Made		77000	102000
Cash Purchase	65%	50050	66300
Payment for last month purchase	35%		26950
Total Cash Paid			93250

Cash paid in september will be cash purchase of month of september and payment of credit purchase of last month.

Cash Budget (September)
Particulars	Amount	Amount
Beginning Cash Balance	41000
Cash Receipts from Sales	262000
Total Cash available		303000
Cash Payments for:
Direct Materials	93250
Direct labor	40000
Other Expense	50000
Accrued Taxes	10100
Interest on bank loan	1400
Total Cash payments		194750
Ending Cash Balance		108250

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