Answer:
Crenshaw, Inc.
Cash Budget for the months of April, May, and June:
April May June
Beginning cash balance $109,000 $325,000 $419,950
Cash receipts 140,700 122,850 153,650
Cash collections from credit sales 197,400 241,200 210,600
Total cash available $447,100 $689,050 $784,200
Cash disbursements:
Wages, taxes, and expenses 79,700 75,200 103,900
Interest 9,400 9,400 9,400
Equipment purchases 33,000 5,500 147,000
Purchases of goods 179,000 167,000
Total cash disbursements 122,100 269,100 427,300
Ending balance $325,000 $419,950 $356,900
Explanation:
a) Data and Calculations:
Budget for the second quarter of 2019:
April May June
Credit sales $402,000 $351,000 $439,000
Credit purchases 179,000 167,000 200,000
Cash disbursements:
Wages, taxes, ^ expenses 79,700 75,200 103,900
Interest 9,400 9,400 9,400
Equipment purchases 33,000 5,500 147,000
Predictions:
Uncollectibles 20,100 17,550 21,950
Collections 381,900 333,450 417,050
Total credit sales $402,000 $351,000 $439,000
Cash Collections:
Month of sales 35% 140,700 122,850 153,650
Following month 60% 197,400 241,200 210,600
Total cash collections 338,100 364,050 364,250
