Schedule of Expected Cash Collections. Smith distributes sil

Schedule of Expected Cash Collections. Smith distributes silk ties. Create a Master Budget for the second quarter, April – June 2014. Smith desires a minimum ending cash balance each month of $11,000. The ties ae sold to retailers for $9 each. Recent and forcasted sales in units are as follows:January (actual) . . . . . . . . . 20,000February (actual) . . . . . . . . 24,000March (actual) . . . . . . . . . . 28,000April . . . . . . . . . . . . . . . . . . 35,000May . . . . . . . . . . . . . . . . . . 45,000June . . . . . . . . . . . . . . . . . . 60,000July . . . . . . . . . . . . . . . . . . 40,000August . . . . . . . . . . . . . . . 36,000September . . . . . . . . . . . . . 32,000The large build-up in sales before and during June is due to Father’s Day. Ending inventories are supposed to equal 90% of the next month’s sales in units. The ties cost the company $5 each.Purchases are paid for as follows: 50% in the month of purchases and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 25% of a month’s sales are collected by month-end. An additonal 75% is collected in the following month. Bad debts have been negligible. I’m trying to figure where I went wrong for my cash budget.February Sales54,0000054,000March Sales189,00063,0000252,000April Sales78,750236,25078,750393,750May Sales0101,250202,500303,750June Sales00135,000135,000Total Cash Collections321,750400,500416,2501,138,500Feb ((24,000 x 9)) x 25% = 54,000Mar ((28,000 x 9)) x 75% = 189,000&   ((25% x 28,000) x 9 = 63,000April ((35,000 x 25%)) x 9 = 78,750&   ((75% x 9)) x 35,000 = 236, 250May ((25% x 9)) x 45,000 = 101,250 &  2 x 101,250=202, 500 June ((60,000 x 25%)) x 9 = 135,000Can someone please help me figure out my cash budget?

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