April 24, 2014

Homework Help: accounting

Posted by Jasmine on Tuesday, July 24, 2012 at 7:17am.

Prepare a monthly Cash Budget in tabular form for the months of February, March and April; showing the bank balance at each month's end.

Company Information and Background

The following data is available from the various functional budgets prepared at Congo Limited.

$'000 $'000 $'000 $'000
CASH SALES 128 84 72 90
Credit Sales 1,140 760 640 800
Purchases for Resale 880 560 520 320
Salaries and Wages 266 280 238 248
Overhead Expense 160 150 160 140

Other information is available as follows:

1.5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the month following sale.
2.All goods are bought on credit from suppliers who allow 2% cash discount for payment in the month following purchase.
3.Salaries and wages are paid in the month in which they are earned.
4.Payments for overhead expenses are made in the month following the month in which expenses are incurred. The above overhead budget includes $28,000 per month for depreciation.
5.Two new vans costing $21,000 each are to be paid for in April.
6.Taxation amounting to $175,000 is to be paid in March.

Answer this Question

First Name:
School Subject:

Related Questions

accounting - A recent cash budget showed estimated cash receipts of $159,000, ...
Accounting - John Sullivan owns appartments buildings in Nova Scotia, New ...
accounting - Assignment Please prepare the homework problems in the form of a ...
accounting 2 - a.Equipment and land were acquired for cash b.There were no ...
accounting 2 urgent please help - part 2 thank you Prepare a statement of cash ...
fin/370 - What information is needed in order to prepare a cash budget
principle of accounting - raper Consulting began operations and completed the ...
business - Lansing Auto Pats, Inc., has projected sales of $25,000 in October...
accounting - Enter transactions: 1. owner contributes $6,00 cash 2. $2,000 in ...
Algebra - monthly budget of $5,000 lABOR $1,835 what percentage of the monthly ...