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Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

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Finance

  1. Here are some important figures from the budget of NashvilleNougats, Inc., for the second quarter of 2002

April

May

June

Credit Sales

$330,000

$372,000

$432,000

Credit purchases

132,000

150,000

185,000

Cash disbursements

Wages, taxes, and expenses

20,400

22,200

25,200

Interest

9,600

9,600

9,600

Equipment purchases

70,000

84,000

0

                                   

The company predicts that 5 percent ofits credit sales will never be collected, 35 percent of its saleswill be collected in the month of the sale, and the remaining 60percent will be collected in the following month. Credit purchaseswill be paid in the month following the purchase.

In March 2002, credit sales were$210,000, and credit purchases were $156,000. Using thisinformation, complete the following cash budget:

April

May

June

Beginning cash balance

$300,000

Cash receipts

Cash collections from credit sales

Total cash available

Cash disbursements

Purchases

Wages, taxes, and expenses

Interest

Equipment purchases

Total cash disbursements

Ending cash balance

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