Company A developed the following budgeted data: Budgeted Sales 70% of sales on account are...
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Accounting
Company A developed the following budgeted data:
Budgeted Sales 70% of sales on account are collected in the month of sale, 15% of sales on account are collected in the first month following the sale, 10% of sales on account are collected in the second month following the sale.
Total budgeted sales in June
($40,000 of total sales are sales on account) $80,000
Total budgeted sales in July
($40,000 of total sales are sales on account) $95,000
Total budgeted sales in August
($30,000 of total sales are sales on account) $110,000
Budgeted Raw Material Purchases.. 25% of purchases on account are paid in the month of purchase, 75% of purchases on account are paid in the month following the month of purchase.
Budgeted purchases on account for:
June $60,000
July $50,000
August $40,000
All other budgeted cash expenses are paid when incurred. Budgeted August salaries are $31,400, budgeted August utilities are $3,220, and budgeted August depreciation is $10,000. The cash balance on August 1st is expected to be $12,300. What is the budgeted cash balance on August 31st?
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