Interested in a PLAGIARISM-FREE paper based on these particular instructions?...with 100% confidentiality?

Order Now

The Doley Company has planned the following sales for the next three months: January February March Budgeted Sales $40,000 $50,000 $70,000 Sales are made 20% for cash and 80% on account. From experience, the company has learned that a month’s sales on account are collected according to the following pattern: Month of sale 60% First month following sale 30% Second month following sale 8% Uncollectible 2% The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000. Required a) Compute the budgeted cash receipts for March. Rember to think in terms of when actual cash is planned to be received. If you are not going to receive the cash it is not part of the budget. Also pay close attention to cash vs credit sales b) The following additional information has been provided for March: Inventory purchases (all paid in cash in March) $28,000 Operating Expenses (all paid in cash in March) $40,000 Depreciation expense for March $5,000 Dividends paid in March $4,000 Prepare a cash budget in good form for the month of March, using this information and the budgeted cash receipts you computed for part a) above. The company can borrow in any dollar amount and will not pay interest until April.

The Doley Company has planned the following sales for the next three months:

 

January February March
Budgeted Sales $40,000 $50,000 $70,000

 

Sales are made 20% for cash and 80% on account. From experience, the company has learned that a month’s sales on account are collected according to the following pattern:

 

Month of sale 60%
First month following sale 30%
Second month following sale 8%
Uncollectible 2%

 

The company requires a minimum cash balance of $5,000 to start a month. The beginning cash balance in March is budgeted to be $6,000.

 

 

 

Required

 

a) Compute the budgeted cash receipts for March. Rember to think in terms of when actual cash is planned to be received. If you are not going to receive the cash it is not part of the budget. Also pay close attention to cash vs credit sales

 

b) The following additional information has been provided for March:

Inventory purchases (all paid in cash in March) $28,000
Operating Expenses (all paid in cash in March) $40,000
Depreciation expense for March $5,000
Dividends paid in March $4,000

 

Prepare a cash budget in good form for the month of March, using this information and the budgeted cash receipts you computed for part a) above. The company can borrow in any dollar amount and will not pay interest until April.

Interested in a PLAGIARISM-FREE paper based on these particular instructions?...with 100% confidentiality?

Order Now