PROBLEM 7-I CASH BUDGET The Francine Company, a merchandising firm, has planned the following sales for the next four months: March Аpril May June Total budgeted sales.... 50,000 70,000 90,000 60,000 Sales are made 40% for cash and 60% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale 70% First month following month of sale 20% Second month following month of sale 8% Uncollectible 2% The company requires a minimum cash balance of $4,000 to start a month. Required: A. Compute the budgeted cash receipts for June.
PROBLEM 7-I CASH BUDGET The Francine Company, a merchandising firm, has planned the following sales for the next four months: March Аpril May June Total budgeted sales.... 50,000 70,000 90,000 60,000 Sales are made 40% for cash and 60% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale 70% First month following month of sale 20% Second month following month of sale 8% Uncollectible 2% The company requires a minimum cash balance of $4,000 to start a month. Required: A. Compute the budgeted cash receipts for June.
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 6BE: Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase...
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Transcribed Image Text:PROBLEM 7-I CASH BUDGET
The Francine Company, a merchandising firm, has planned the following sales for the next four
months:
March
April
May
June
Total budgeted sales....
50,000
70,000
90,000
60,000
Sales are made 40% for cash and 60% on account. From experience, the company has learned
that a month's sales on account are collected according to the following pattern:
Month of sale
70%
First month following month of sale
20%
Second month following month of sale
8%
Uncollectible
2%
The company requires a minimum cash balance of $4,000 to start a month.
Required:
A. Compute the budgeted cash receipts for June.
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