Cash Budget
Wilson's Retail Company is planning a cash budget for the nextthree months. Estimated sales revenue is as follows:
| Month | Sales Revenue | Month | Sales Revenue |
|---|
| January | $300,000 | March | $200,000 |
| February | 245,000 | April | 155,000 |
All sales are on credit; 60 percent is collected during themonth of sale, and 40 percent is collected during the next month.Cost of goods sold is 70 percent of sales. Payments for merchandisesold are made in the month following the month of sale. Operatingexpenses total $40,000 per month and are paid during the monthincurred. The cash balance on February 1 is estimated to be$30,000.
Prepare monthly cash budgets for February, March, and April.
Use negative signs only with beginning and ending cash balances,when appropriate. Do not use negative signs with disbursementanswers.
Wilson's RetailCompany
Cash Budgets
February, March, and April |
|---|
| February | March | April |
|---|
| Cash balance, beginning | $Answer | $Answer | $Answer |
| Total Cash receipts | Answer | Answer | Answer |
| Cash available | Answer | Answer | Answer |
| Total disbursements | Answer | Answer | Answer |
| Cash balance, ending | $Answer | $Answer | $Answer |
