Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: Credit sales Credit purchases Cash disbursements 136,000 April May June $328,000 $308,000 $368,000 159,000 184,000 Wages, taxes, and 44,800 12,300 63,800 expenses Interest Equipment purchases 11,800 88,000 11,800 11,800 166,000 0 The company predicts that 5 percent of its credit sales will never be collected, 20 percent of its sales will be collected in the month of the sale, and the remaining 75 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $198,000, and credit purchases were $138,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.) Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance April May June $ 131,000
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: Credit sales Credit purchases Cash disbursements 136,000 April May June $328,000 $308,000 $368,000 159,000 184,000 Wages, taxes, and 44,800 12,300 63,800 expenses Interest Equipment purchases 11,800 88,000 11,800 11,800 166,000 0 The company predicts that 5 percent of its credit sales will never be collected, 20 percent of its sales will be collected in the month of the sale, and the remaining 75 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $198,000, and credit purchases were $138,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.) Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements Ending cash balance April May June $ 131,000
Chapter8: Budgets And Bank Reconciliations
Section: Chapter Questions
Problem 3.3C
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Transcribed Image Text:Here are some important figures from the budget of Cornell, Inc., for the second quarter
of 2020:
Credit sales
Credit purchases
Cash disbursements
136,000
April
May
June
$328,000 $308,000 $368,000
159,000
184,000
Wages, taxes, and
44,800 12,300
63,800
expenses
Interest
Equipment purchases
11,800
88,000
11,800
11,800
166,000
0
The company predicts that 5 percent of its credit sales will never be collected, 20
percent of its sales will be collected in the month of the sale, and the remaining 75
percent will be collected in the following month. Credit purchases will be paid in the
month following the purchase.
In March 2020, credit sales were $198,000, and credit purchases were $138,000. Using
this information, complete the following cash budget. (Do not round intermediate
calculations.)
Beginning cash balance
Cash receipts
Cash collections from credit sales
Total cash available
Cash disbursements
Purchases
Wages, taxes, and expenses
Interest
Equipment purchases
Total cash disbursements
Ending cash balance
April
May
June
$
131,000
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