Cheск ппуSources of cashCollections on current sales$4210 O 5220 S200 VCollections on amounts receivable$4145 $210 O$220Total sources of cash24355430$4420Uses of cashPayments of accounts payable140 $95 V $85Cash purchases$125 O $135 S115Labor and administrative expenses85 $85 S85Capital expenditures2$210 STaxes, interest, and dividends65 M S6565Total uses of cash2462538024350Net cash inflow2$(270) O S(50)(70) 8Cash at start of period210(60) X S(10)Net cash inflow24(270) O S50 S70Cash at end of period(60)(10)60!3!0.Minimum operating cash balanceCumulative short-term financing required210%3D270(10)60< Prev4 of 8Next >earch0000000000 Return tThe following data are from the budget of Ritewell Publishers. Half the company's sales are transacted on a cash basis. The other halfare paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were$140, and total sales in January were $290.February March$ 420April$ 400Total sales$ 440125135115Cash purchasesCredit purchasesLabor and administrative purchases958595858585Taxes, interest, and dividends656565210Capital expendituresComplete the following cash budget. (Leave no cells blank. Enter 'O' when necessary. Negative amounts should be indicated by aminus sign.)* Answer is complete but not entirely correct.FebruaryMarchAprilSources of cashCollections on current salesIS210 O S220 S200145 S210 S220Collections on amounts receivable< Prev4 of 8Next >arch

Answered: Image /qna-images/answer/0ab82c3d-5e49-44c8-bb43-677594d46c59.jpg

neck my Worn RIVw Sources of cash 210 24 220 $4 200 Collections on current sales $ 145 24 210 O $ 220 Collections on amounts receivable 2$ 355 430 $4 420 Total sources of cash Uses of cash 140 95 O $ 85 Payments of accounts payable $24 125 135 115 O Cash purchases 2$ 85 $ 85 85 Labor and administrative expenses 210 S Capital expenditures 65 S 65 S 65 Taxes, interest, and dividends 625 380 24 350 Total uses of cash (270) O S (50) S (70) Net cash inflow (60) S 50 S 210 (10) X Cash at start of period 70 (270) O S Net cash inflow (60) (10) 60 Cash at end of period 210 Minimum operating cash balance Cumulative short-term financing required 270 (10) 60 %3D %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24

neck my Worn RIVw Sources of cash 210 24 220 $4 200 Collections on current sales $ 145 24 210 O $ 220 Collections on amounts receivable 2$ 355 430 $4 420 Total sources of cash Uses of cash 140 95 O $ 85 Payments of accounts payable $24 125 135 115 O Cash purchases 2$ 85 $ 85 85 Labor and administrative expenses 210 S Capital expenditures 65 S 65 S 65 Taxes, interest, and dividends 625 380 24 350 Total uses of cash (270) O S (50) S (70) Net cash inflow (60) S 50 S 210 (10) X Cash at start of period 70 (270) O S Net cash inflow (60) (10) 60 Cash at end of period 210 Minimum operating cash balance Cumulative short-term financing required 270 (10) 60 %3D %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24 %24

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 17E

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Schedule of Cash Collections on Accounts Receivable and Cash Budget Bennett Inc. found that about 30% of its sales during the month were for cash. Bennett has the following accounts receivable payment experience: Percent paid in the month of sale 25 Percent paid in the month after the sale 68 Percent paid in the second month after the sale 5 Bennett's anticipated sales for the next few months are as follows: April $250,000 May 290,000 June 280,000 July 295,000 August 300,000