Requirement 1 and 2:
Total cash collections | $677,300 |
Total cash disbursements | $287,300 |
Calculations:
Total cash collections | |||||
Credit sales | % | October | November | December | |
Cash sales | $68,400 | $87,400 | $95,800 | ||
Collections from customers: | |||||
October sales | $415,000 | ||||
Collected in October | 20% | $83,000 | |||
Collected in November | 60% | $249,000 | |||
Collected in December | 18% | $74,700 | |||
November sales | $614,000 | ||||
Collected in November | 20% | $122,800 | |||
Collected in December | 60% | $368,400 | |||
December sales | $692,000 | ||||
Collected in December | 20% | $138,400 | |||
Total | $151,400 | $459,200 | $677,300 |
Total cash disbursements for merchandise purchase | |
Payment of accounts payable | $174,500 |
Payment for December purchases (376,000 x 30%) | $112,800 |
Total | $287,300 |
Requirement 3:
Ashton Company | ||
Cash budget | ||
For the month of December | ||
Beginning cash balance | $41,000 | |
Add: Collections from customers | $677,300 | |
Total cash available (i) | $718,300 | |
Less: Cash disbursements | ||
Payment to suppliers for inventory | $287,300 | |
Selling and administrative expense (452,000-63,500 Dep.) | $388,500 | |
New web servier | $86,500 | |
Dividends paid | $10,500 | |
Total cash disbursements (ii) | $772,800 | |
Excess (deficiency) of cash available over disbursements (i) - (ii) | ($54,500) | |
Financing: | ||
Borrowing | $74,500 | |
Repayment | ||
Interest | ||
Total financing | ||
Ending cash balance | $20,000 |
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 $40,000, b. Actual sales for October and November and expected sales for December are as follows: Cash sales Sales on account October $ 65,000 $ 400,000 November $ 70,000 5 525,eee December $ 83,000 $ 600,000 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...
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: The cash balance on December 1 is $41,000. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 68,400 $ 87,400 $ 95,800 Sales on account $ 415,000 $ 614,000 $ 692,000 Sales on account are collected over a three-month period as follows:...
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 $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 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 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...