Question

HTM 241 EX11-2 Name: Please prepare a cash budget for February based on the information below. January February $38,400 (14.208) $24,192 Sales revenue $39,300 (14.541) $24,759 Cost of sales Gross margin Wage expense Other operating expense Depreciation expense Total operating expense Operating income $13,056 5,760 768 $13,362 5,895 768 (19.584) $4.608 (20.025) S4.734 January ending cash balance was $4,448 86% of sales revenue is collected in the current month and the remainder in the next month 75% of cost of sales is paid in the current month and the remainder in the next month Wages and operating expenses are paid in the month incurred. Cash budget For February, 20xx Beginning cash balance Cash receipts, operations Cash sales revenue, current Cash sales revenue, previous month Total cash receipts Total cash available, Feb. Cash disbursements, operations Cost of sales, current Cost of sales, previous month Wage expense Operating expens es Total cash disbursements Ending cash balance

Answer 1

$ 4,448.00 Cash Budget For February, 20XX Beginning cash balance Cash receipts, operations Cash sales revenue, current ($39,300 * 86%) Cash sales revenue, previous month ($38,400 * 14%) Total cash receipts Total cash available, Feb. Cash disbursements, operations Cost of sales, current ($14,541 * 75%) Cost of sales, previous month ($14,208 * 25%) Wage expense Operating expenses Total cash disbursements Ending cash balance $ 33,798.00 $ 5,376.00 $ 39,174.00 $ 43,622.00 $ 10,905.75 $ 3,552.00 $ 13,362.00 $ 5,895.00 $ 33,714.75 $ 9,907.25