Here are some important figures from the budget of Nashville Nougats, Inc.. for the second quarter of 2015. April May $319.000 $299,000 127.000 150,000 Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements 43.900 10.900 79.000 The company predicts that 5 percent of its credit sales will never be collected. 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Purchases Wages, taxes, and expenses Interest. Equipment purchases Total cash disbursements In March 2015, credit sales were $189.000 and credit purchases were $129,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank-be certain to enter "0" wherever required.) Ending cash balance 11.400 10,900 148.000 $ $ June $359.000 175,000 62,900 10,900 0 April 122,000 S May June WILLYL

Here are some important figures from the budget of Nashville Nougats, Inc.. for the second quarter of 2015. April May $319.000 $299,000 127.000 150,000 Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements 43.900 10.900 79.000 The company predicts that 5 percent of its credit sales will never be collected. 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Purchases Wages, taxes, and expenses Interest. Equipment purchases Total cash disbursements In March 2015, credit sales were $189.000 and credit purchases were $129,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank-be certain to enter "0" wherever required.) Ending cash balance 11.400 10,900 148.000 $ $ June $359.000 175,000 62,900 10,900 0 April 122,000 S May June WILLYL

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 4P

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A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
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