Answer:
Cash payment expected for May $387,350.00
Cash payment expected for June $413,255.00
Explanation:
The question is centered around the preparation of cash budget.
- Note that the principles are simply that only items of cash paid or received should be captured in the cash budget. So you should avoid items like depreciation, provisions e.t.c
- Also, the cash flows are captured at the time the they occur.
So applying these principles, we can prepare the Expected Cash Payment Schedule for Wight Inc as follows:
Expected Cash Payment Schedule
Installment Workings May
Month of billing 35% * 411,400 143,990
Next Month(for April purchases ) 65%*374,400 243,360
Cash payment for May 387,350
Installment Workings June
Month of billing 35% * 416,700 145,845
Next Month(for May) 65%*411,400 267,410
Cash payment for June 413,255.00
Cash payment expected for May $387,350.00
Cash payment expected for June $413,255.00
