Question

1) MyCo Inc. had the following sales estimates for the 1st half of the year - they want you to prepare a Cash budget including the schedule of cash receipts and cash payments for the 2nd Qtr (3 months of April, May & June). Half of MyCo's sales are on account and the collection schedule is 20% in the month of sale, 50% the following month and 30% the month after that. They do not expect any amounts to be uncollectable. The beginning balance of cash on April 1st is $10,000. Inventory Purchases are paid for as follows: 50% the month of purchase and 50% the following month all other expenses must be paid for in the month they are incurred. They can only borrow in increments of $5,000 and must have a minimum cash balance at all times of $10,000. Be sure to show all your work. (AGG = BI tahun located B2 Sales INV Purchases Payroll Depreciation Rent February $100,000 $70,000 $35,000 | $10,000 $25,000 March $150,000 $100,000 $35,000 $10,000 $25,000 April $200,000 $100,000 $35,000 $10,000 $25,000 May $200,000 $150,000 $35,000 $10,000 $25,000 June $200,000 $200,000 $35,000 $10,000 $25,000 TAPI May Fy000 to Jun... so (35305)

help me

Answer 1

MyCo. Inc.
Cash budget
For the 2nd quarter
	April	May	June	2nd Quarter
Beginning cash balance	$10,000	$10,000	$10,000	$10,000
Add: Customer receipts	$145,000	$185,000	$200,000	$530,000
Available cash (A)	$155,000	$195,000	$210,000	$540,000
Disbursements:
INV purchases	$100,000	$125,000	$175,000	$400,000
Payroll	$35,000	$35,000	$35,000	$105,000
Rent	$25,000	$25,000	$25,000	$75,000
Total disbursements (B)	$160,000	$185,000	$235,000	$580,000
Cash surplus(deficit) (A-B)	($5,000)	$10,000	($25,000)	($40,000)
Financing:
Planned borrowing	$15,000		$35,000	$50,000
Ending cash balance	$10,000	$10,000	$10,000	$10,000

*Depreciation is a non-cash item. So that it should not be consider in cash budget.

Calculations:

Cash collections
	Credit sales	% of collection	April	May	June
February	$100,000
Collected in April		30%	$30,000
March	$150,000
Collected in April		50%	$75,000
Collected in May		30%		$45,000
April	$200,000
Collected in April		20%	$40,000
Collected in May		50%		$100,000
Collected in June		30%			$60,000
May	$200,000
Collected in May		20%		$40,000
Collected in June		50%			$100,000
June	$200,000
Collected in June		20%			$40,000
Total collections			$145,000	$185,000	$200,000
Cash disbursements for inventory purchases
	Credit Purchases	% of collection	April	May	June
March	$100,000
Paid in April		50%	$50,000
April	$100,000
Paid in April		50%	$50,000
Paid in May		50%		$50,000
May	$150,000
Paid in May		50%		$75,000
Paid in June		50%			$75,000
June	$200,000
Paid in June		50%			$100,000
Total			$100,000	$125,000	$175,000