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Cash Budget Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales...

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Accounting

Cash Budget
Wilson's Retail Company is planning a cash budget for the nextthree months. Estimated sales revenue is as follows:

MonthSales RevenueMonthSales Revenue
January$300,000March$200,000
February245,000April155,000

All sales are on credit; 60 percent is collected during themonth of sale, and 40 percent is collected during the next month.Cost of goods sold is 70 percent of sales. Payments for merchandisesold are made in the month following the month of sale. Operatingexpenses total $40,000 per month and are paid during the monthincurred. The cash balance on February 1 is estimated to be$30,000.

Prepare monthly cash budgets for February, March, and April.

Use negative signs only with beginning and ending cash balances,when appropriate. Do not use negative signs with disbursementanswers.

Wilson's RetailCompany
Cash Budgets
February, March, and April
FebruaryMarchApril
Cash balance, beginning$Answer$Answer$Answer
Total Cash receiptsAnswerAnswerAnswer
Cash availableAnswerAnswerAnswer
Total disbursementsAnswerAnswerAnswer
Cash balance, ending$Answer$Answer$Answer

Answer & Explanation Solved by verified expert
3.8 Ratings (431 Votes)

Wilson's Retail Company
Cash Budgets
February, March, and April
February March April
Cash balance, beginning 30000 47000 53500
Total Cash receipts 267000 218000 173000
Cash available 297000 265000 226500
Total disbursements 250000 211500 180000
Cash balance, ending 47000 53500 46500
Total Cash Receipts: January February March April
Sales Revenue 300000 245000 200000 155000
In the Month of Sales(60%) 180000 147000 120000 93000
In the Next Month (40%) 120000 98000 80000
Total Cash Receipts 267000 218000 173000
Total Cash Disbusement: January February March April
Sales Revenue 300000 245000 200000 155000
Cost of Goods Sold(70%) 210000 171500 140000 108500
Payment for Merchandise 210000 171500 140000
Operating Expense 40000 40000 40000
Total Cash Disbursement 250000 211500 180000

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