1) Based on the terms , Expected collection for December is 590000 $
Workings are
Collection | Oct | Nov | Dec | |
Cash sale | 65,000 | 70,000 | 83,000 | |
Terms of payment | Credit sale | |||
Same month | 20% | 80,000 | 1,05,000 | 1,20,000 |
Next month | 60% | 2,40,000 | 3,15,000 | |
Second month | 18% | 72,000 | ||
Total | 1,45,000 | 4,15,000 | 5,90,000 |
Fig In $ | Oct | Nov | Dec |
Sales | |||
Cash | 65,000 | 70,000 | 83,000 |
credit | 4,00,000 | 5,25,000 | 6,00,000 |
Total | 4,65,000 | 5,95,000 | 6,83,000 |
2) Expected disbursement for merchandise 245000
Oct | Nov | Dec | ||
Purchases | 2,80,000 | |||
Terms of payment | ||||
Same month | 30% | 84,000 | ||
Balance | 70% | |||
Balance payment of November | 1,61,000 | |||
Payment for merchandise | 2,45,000 |
3) Cash budget
Ashton Company | ||
CashBudget | ||
FTM December | ||
$ | $ | |
Beginning Cash Balance | 40000 | |
Add Collection from customers | 590000 | |
Total Cash available | 630000 | |
Less: Cash disbursements | ||
Payment to suppliers for merchandise | 245000 | |
Selling and administrative expenses | 380000 | |
New Web server | 76000 | |
Dividends Paid | 9000 | |
Total Cash disbursements | 710000 | |
Excess(deficiency) of cash available over disbursements | -80000 | |
Financing | ||
Borrowings | 100000 | |
Repayments | 0 | |
Interest | 0 | |
Total Financing | 100000 | |
Ending cash balance | 20000 |
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. Th...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $41,000 b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October November December $ 68, 400 $ 87,400 $ 95,800 $ 415, 000 $ 614,000 $ 692,000 Sales on account are collected over a...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: points a. The cash balance on December 1 is $56,600. b. Actual sales for October and November and expected sales for December are as follows: eBook Cash sales Sales on account October November December $ 71,200 $ 73,400 $ 86,200 $ 440,000 $ 576,000 $ 639,000 Print Sales on account are collected over...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $41,000. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October November December $ 68,400 $ 87,400 $ 95, 800 $ 415,000 $ 614,000 $ 692,000 Sales on account are collected over a three-month...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $58,600. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October November December $ 73,200 $ 78,000 $ 92,000 $ 485,000 $ 568,000 $ 663,000 Sales on account are collected over a three-month period...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $58,600. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October $ 73,200 $ 485,000 November December $ 78,000 $ 92,000 $ 568,000 $ 663,000 Sales on account are collected over a three-month period...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $41,000. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October November December $ 68,400 $ 87,400 $ 95,800 $ 415,000 $ 614,000 $ 692,000 Sales on account are collected over a three-month period...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $51,400. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October November December $ 71, 600 S 80,200 $ BB, 600 $ 120,000 $$80,000 $ 652,000 Sales on account are collected over a three-month...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $43,200. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 will be $39,000. b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October $ 65,000 397,000 November $ 65,000 522,000 December $ 82,600 598,000 Sales on account are collected over a three-month period in the...
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company's operations: a. The cash balance on December 1 is $53,200. b. Actual sales for October and November and expected sales for December are shown below. Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in...