Requirement 4. Prepare the cash budget for January and February 2025. Assume no financing took place. Baxter Company Cash Budget Two Months Ended February 28, 2025 Budget Information Beginning cash balance Cash receipts from customers Cash available Cash payments: Purchases of merchandise inventory Selling and administrative expenses Payments for income taxes Total cash payments Ending cash balance S Get more help January February - ☑ December 31, 2024, account balances: Cash Accounts Receivable 28,000 20,000 Merchandise Inventory Accounts Payable 22,000 16,000 Salaries and Commissions Payable 2,750 Budgeted amounts for 2025: January February Sales, all on account $ 84,000 $ 84,100 Purchases, all on account 40,200 41,200 Commissions Expense 4,200 4,205 Salaries Expense 4,500 4,500 Rent Expense 2,000 2,000 Depreciation Expense 300 300 Insurance Expense 200 200 Income Tax Expense 2,300 2,300

Jim Daniels Health Products has eight stores. The firm wants to expand by two more stores and needs a bank loan to do this. Mr. Hewitt, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. Following are actual and forecasted sales figures: Actual November December $420,000 January 440,000 February March Forecast Additional Information $500,000 April forecast $550,000 540,000 560,000 of the firm's sales, 40 percent are for cash and the remaining 60 percent are on credit. Of credit sales, 30 percent are paid in the month after sale and 70 percent are paid in the second month after the sale. Materials cost 35 percent of sales and are purchased and received each month in an amount sufficient to cover the current month's expected sales. Materials are paid for in the month they are received. Labour expense is 45 percent of sales and is paid in the month of sales. Selling and administrative expense is 4 percent of…

* CengageNOWv2 | Online teachin x .com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress%3false Cash Budget The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July Sales $146,000 $185,000 $248,000 Manufacturing costs 61,000 80,000 89,000 Selling and administrative expenses 42,000 50,000 55,000 Capital expenditures 60,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $7,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 85% are expected to be…

are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $26,800. Accounts receivable on April 1 will total $193,200, of which $165,600 will be collected during April and $22,080 will be collected during May. The remainder will be uncollectible. b. Past experience shows that 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: Sales (all on account) Merchandise purchases Payroll Lease payments Advertising Equipment purchases Depreciation April $360,000 $ 275,000 $32,000 $ 38,400 $ 73,000 $0 $ 15,400 Required 1 Required 2 May $ 582,000 $ 227,000 $ 32,000 $ 38,400 $ 73,000 $0 $ 15,400 c. Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise…