Blossom Bakery has budgeted sales revenues as follows:Credit salesCash salesTotal salesApril$45,90012,240$58,140April $34,680May37,740Past experience indicates that 40% of the credit sales will be collected in the month of sale, and the remaining 60% will be collected inthe following month.Purchases of inventory are all on credit, and 20% will be paid in the month of purchase with the balance paid in the month followingpurchase. Budgeted inventory purchases are:Other budgeted amounts include: (a) selling and administrative expenses of $25,296 each month and (b) dividends of $8,364 to bepaid in May. Included in the selling and administrative expenses is depreciation expense of $1,938.Beginning Cash BalanceAddThe company wishes to maintain a minimum cash balance of $4,080 at the end of each month. The company borrows money from thebank at 4% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excesscash balance. The beginning cash balance on May 1 was $4,590. Money is borrowed in $102 increments.Prepare a cash budget for the months of May.LessTotal Available CashMay$48,960Collections From CustomersDividends$65,280Purchases16,320ReceiptsSelling and Administrative ExpensesTotal DisbursementsFinancingBorrowingsDisbursementsEnding Cash BalanceExcess (Deficiency) of Available Cash Over DisbursementseTextbook and MediaBlossomBarkerCash BudgetFor the Months of May>>>$$

A Business Entity's ability to pay off its creditors and liabilities, will directly impact its…

Answered: Prepare a cash budget for the months of…

Business

Accounting

Prepare a cash budget for the months of May.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 5P

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The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000
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