Short Answer: 1. Preparation of cash budget (5.4 points) Use the following information to prepare...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Short Answer: 1. Preparation of cash budget (5.4 points) Use the following information to prepare a cash budget for Knightsbridge Corporation for the month of June 2012. In May, 30-day credit sales were $175,000, 80% of this amount is estimated to be collectible in June. June sales are estimated to be S425,000; cash sales are usually 25% of total sales. Only 10% of credit sales are collected in the month in which the sale is made Total fixed expenses are $60,000 per month, including $26,000 depreciation. Variable expenses are 55% of sales. All expenses requiring payment are paid in cash when incurred. A $40,000 note payable must be paid on June 30 As of May 31, the cash balance is $94,000. KNIGHTSBRIDGE CORPORATION Cash Budget For the Month of June 2012 Cash balance at beginning of monh.. Receipts Collections from customers: May credit sales June credit sales June cash sales Total cash available.. Disbursements: Fixed expenses Variable expenses Note payable... Cash balance at end of month.... 9
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
