Question

20-34 (Simal 10 World is a real store selling home oxygen equipment. He World also services home oxygen equipment for which the company is customers monthly Heath World has budgeted for increases in service revenue of $800 each Onth due to a recent advertising campaign. The forecast of sales and service revenue for March June 2018 is as follows: Click the icon to view the forecast of sales and service revenue) Click the icon to view the collection information) Beard the teamet Data Table with a minus sign of parentheses Complete all e r Cash Budget Month Total Revenue 5 11.700 Cash balance, beginning Add receipts Sales and Service Revenues Budget March June 2018 Expected Sales Revenue Expected Service Revenue $ 7.000 8,000 5.500 7,200 500 7100 300 Total cash value for needs 13.500 15.000 inimum balance des Port Dome Casheed

Answer 1

Cash Balance, Beginning Add: Receipts Total Cash Available for needs Total disbursements Minimum cash balance desired Total Cash Needed Cash Excess (deficiency) Cash Budget For May Original Numbers 200.00 13,084.00 13,284.00 12,200.00 260.00 12,460.00 824.00 May Revenues May Costs Decrease 10% Increase 5% 200.00 200.00 11,913.10 13,084.00 12,113.10 13,284.00 12,200.00 12,810.00 260.00 260.00 12,460.00 13,070.00 (346.90) 214.00 Working Notes: May Revenue Decrease by 10% Collection of May Sales (6,984 90%) Collection of April Service Collection of May Service (4,725 ~ 90%) 6,285.60 1,375.00 4,252.50 11,913.10 Total Receipts Cost Increase by 5% (12,200 x 105%) 12,810