Details of this Paper

The Doley Company_Budgets




Question;The Doley Company has planned the following sales for;the next three months;January;February;March;Budgeted Sales;$40,000;$50,000;$70,000;Sales are made 20% for cash and 80% 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;60%;First month following sale;30%;Second month following sale;8%;Uncollectible;2%;The company requires a minimum cash balance of $5,000;to start a month. The beginning cash balance in March is budgeted to be $6,000.;Required;a) Compute the budgeted;cash receipts for March. Rember to think in terms of when actual cash;is planned to be received. If you are not going to receive the cash it is not;part of the budget. Also pay close attention to cash vs credit sales;b) The following;additional information has been provided for March;Inventory;purchases (all paid in cash in March);$28,000;Operating;Expenses (all paid in cash in March);$40,000;Depreciation;expense for March;$5,000;Dividends;paid in March;$4,000;Prepare a cash budget in good form for the month of;March, using this information and the budgeted cash receipts you computed for;part a) above. The company can borrow in any dollar amount and will not pay;interest until April.


Paper#38238 | Written in 18-Jul-2015

Price : $22