Question

Steady Eddie Corp. is constructing its cash budget. Its budgeted monthly sales are $7,000, and they are constant from month to month. 40% of its customers pay in the first month and take the 2% discount, while the remaining 60% pay in the month following the sale and do not receive a discount. The firm has no bad debts. Purchases for next month's sales are constant at 50% of projected sales for the next month. "Other payments," which include wages, rent, and taxes, are 25% of sales for the current month. Construct a cash budget for a typical month and calculate the average net cash flow during the month. Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Answer 1

А B 1 calculatin of cash budget fo the month of March 2020 2 Month March comments 3 sales 7000 Given 5 opening cash balance 6 payment recd 40% 7 payment recd 60% 0 2744 4200 =+B3*40%*0.98 40% of sales of current month and then 98% 7000*0.6 60% of sales last month 9 total receive 6944 11 purcahse payment 12 other payments 3500 1750 =7000*0.5 =+B3.0.25 50% of sales of next month sales 25% of current month sales 14 total payments 5250 16 average net cash flow 1,694.00 =+B9-B14 18 plesae ask if any queryl