The following information is from Tejas WindowTint's financial records.MonthAprilMayJuneJulySales$ 72,00071,00066,00088,000Purchases$ 61,00060,00048,00066,000Collections from customers are normally 69 percent in the month of sale, 19 percent in the month following the sale, and 10 percent inthe second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takesfull advantage of the 1 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August arebudgeted at $67,000, and sales for August are forecasted at $73,000. Cash disbursements for expenses are expected to be $16,000for the month of August. The company's cash balance on August 1 was $29,000.Required:1. Prepare the expected cash collections during August.2. Prepare the expected cash disbursements during August.3. Calculate the expected cash balance on August 31.Complete this question by entering your answers in the tabs below.Required 1Required 2 Required 3Prepare the expected cash collections during August.TEJAS WINDOW TINTExpected Cash CollectionsAugustMonthSalesPercentExpectedCollections%%%$0TotalRequired 1Required 2 >

Cash budget :A cash budget is a financial tool used by businesses to forecast and manage their cash…

Answered: 1. Prepare the expected cash…

1. Prepare the expected cash collections during August. 2. Prepare the expected cash disbursements during August. 3. Calculate the expected cash balance on August 31.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

The following information is from Tejas WindowTint's financial records.
Month
April
May
June
July
Sales
$ 72,000
71,000
66,000
88,000
Purchases
$ 61,000
60,000
48,000
66,000
Collections from customers are normally 69 percent in the month of sale, 19 percent in the month following the sale, and 10 percent in
the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes
full advantage of the 1 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are
budgeted at $67,000, and sales for August are forecasted at $73,000. Cash disbursements for expenses are expected to be $16,000
for the month of August. The company's cash balance on August 1 was $29,000.
Required:
1. Prepare the expected cash collections during August.
2. Prepare the expected cash disbursements during August.
3. Calculate the expected cash balance on August 31.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2 Required 3
Prepare the expected cash collections during August.
TEJAS WINDOW TINT
Expected Cash Collections
August
Month
Sales
Percent
Expected
Collections
%
%
%
$
0
Total
Required 1
Required 2 >

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Accounting for Cash and cash equivalents

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