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Cash Budget Problem With Solution

The document provides cash budgets for Angel Merchandise for January, February, and March 2019. It estimates beginning and ending cash balances each month, as well as cash inflows from sales and accounts receivable and cash outflows to pay expenses, purchases, and equipment. The January ending cash balance was $125,000, February was $106,840, and March was projected to be $49,080.

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242 views3 pages

Cash Budget Problem With Solution

The document provides cash budgets for Angel Merchandise for January, February, and March 2019. It estimates beginning and ending cash balances each month, as well as cash inflows from sales and accounts receivable and cash outflows to pay expenses, purchases, and equipment. The January ending cash balance was $125,000, February was $106,840, and March was projected to be $49,080.

Uploaded by

hannah3jane3amad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ANGEL MERCHANDISE

Cash Budget
For the Month Ended January 31, 2019

January 01, 2019, Beginning Cash Balance 80,000.00


Add: Cash Sales (Schedule 1) 120,000.00
Collection of Accounts Receivable (Schedule 2) 167,400.00 287,400.00
Estimated Cash Available 367,400.00
Less: Estimated Cash Disbursements
Payment of 2018 Payables (Schedule 3) 30,400.00
Payment of Purchases (Schedule 4) 152,000.00
Payment of Operating Expenses 60,000.00 242,400.00
January 31, 2019, Ending Cash Balance 125,000.00

Schedule 1 - Cash Sales


January 2019
(300,000 x 40%) 120,000.00

Schedule 2 - Collection of Accounts Receivable


December 2018 (250,000x60%)x18% 27,000.00
January 2019 (300,000x60%)x78% 140,400.00
167,400.00

Schedule 3 - Payment of 2018 Payables


December 2018 (160,000x20%)x95% 30,400.00

Schedule 4 - Payment of Purchases


January 2019 (200,000x80%)x95% 152,000.00
ANGEL MERCHANDISE
Cash Budget
For the Month Ended February 31, 2019

February 01, 2019, Beginning Cash Balance 125,000.00


Add: Cash Sales (Schedule 1) 152,000.00
Collection of Accounts Receivable (Schedule 2) 210,240.00 362,240.00
Estimated Cash Available 487,240.00
Less: Estimated Cash Disbursements
Payment of January Payables (Schedule 3) 38,000.00
Payment of Purchases (Schedule 4) 182,400.00
Downpayment of Equipment (Schedule 5) 90,000.00
Payment of Operating Expenses 70,000.00 380,400.00
February 28, 2019, Ending Cash Balance 106,840.00

Schedule 1 - Cash Sales


February 2019
(380,000 x 40%) 152,000.00

Schedule 2 - Collection of Accounts Receivable


January 2019 (300,000x60%)x18% 32,400.00
February 2019 (380,000x60%)x78% 177,840.00
210,240.00

Schedule 3 - Payment of January Payables


January 2019 (200,000x20%)x95% 38,000.00

Schedule 4 - Payment of Purchases


February 2019 (240,000x80%)x95% 182,400.00

Schedule 5 - Downpayment of Equipment


(150,000x60%) 90,000.00
ANGEL MERCHANDISE
Cash Budget
For the Month Ended March 31, 2019

March 01, 2019, Beginning Cash Balance 106,840.00


Add: Cash Sales (Schedule 1) 180,000.00
Collection of Accounts Receivable (Schedule 2) 251,640.00 431,640.00
Estimated Cash Available 538,480.00
Less: Estimated Cash Disbursements
Payment of February Payables (Schedule 3) 45,600.00
Payment of Purchases (Schedule 4) 288,800.00
Full Payment of Equipment (Schedule 5) 60,000.00
Payment of Operating Expenses 95,000.00 489,400.00
March 31, 2019, Ending Cash Balance 49,080.00

Schedule 1 - Cash Sales


March 2019
(450,000 x 40%) 180,000.00

Schedule 2 - Collection of Accounts Receivable


February 2019 (380,000x60%)x18% 41,040.00
March 2019 (450,000x60%)x78% 210,600.00
251,640.00

Schedule 3 - Payment of February Payables


February 2019 (240,000x20%)x95% 45,600.00

Schedule 4 - Payment of Purchases


March 2019 (380,000x80%)x95% 288,800.00

Schedule 5 - Full Payment of Equipment


(150,000x40%) 60,000.00

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