11. Calculating the Cash Budget Here are some important figures from thebudget of Crenshaw, Inc., for the second quarter of 2019.LO 3AprilMayJune$598,000282,000$689,000$751,000Credit sales302,000338,000Credit purchasesCash disbursements137,000129,000179,000Wages, taxes, and expenses15,60015,60015,600Interest53,5006,600248,000Equipment purchasesThe company predicts that 5 percent of its credit sales will never be collected35 percent of its sales will be collected in the month of the sale, and the re-maining 60 percent will be collected in the following month. Credit purchaseswill be paid in the month following the purchase.In March 2019, credit sales were $561,000. Using this information, com-plete the following cash budget:AprilMayJune$182,000Beginning cash balanceCash receiptsCash collections from credit salesTotal cash availableCash disbursementsPurchases289,000Wages, taxes, and expensesInterestEquipment purchasesTotal cash disbursementsEnding cash balance

Calculation for cash collections from credit sales for each month is as below:

Answered: 11. Calculating the Cash Budget Here…

Quickbooks Online Accounting

3rd Edition

ISBN:9780357391693

Author:Owen

Publisher:Owen

Chapter8: Budgets And Bank Reconciliations

Section: Chapter Questions

Problem 3.3C

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