1. Prepare the cash budget of the Koutouzov Company for the first six months of...
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Accounting
1. Prepare the cash budget of the Koutouzov Company for the first six months of XXX1 on the basis of the following estimates:
Actual and estimated sales are:
Additional Info:
- Sales are 30 percent for cash and 70 percent for credit; 50 percent of credit sales are collected in the month after sales and the remaining balance collected in the second month after sales.
- Purchases of merchandise are 80 percent of sales and made one month in advance of sales date to allow for delivery. Purchases are paid in full in the month following the purchases.
- Wages and salaries are $1,296 a month; interest on $6,480 of 6 percent notes payable is paid quarterly; the company has a cash balance of $2,333 as of December 31, XXX0, and a minimum cash balance of $1,080 is to be maintained throughout the budget period.
I would really appreciate help with this! I have a lot of trouble with these problems, thanks!
November XXX0 December XXX0 January XXx1 February XXX1 8,640 March XXX1 7,776 April XXX1 6,480 May XXX1 5,184 June XXX1 3,456 4,320 6,480 7,776 8,640 July XXX1
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