Flint, Inc. provided the following information: Projected merchandise purchases . . March $67,000 Budgeted cash disbursements April $75,000 Flint pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. General operating expenses are budgeted to be $25,000 per month of which depreciation is $2,000 of this amount. Flint pays operating expenses in the month incurred. Calculate Flint's budgeted cash disbursements for May. $ May $81,000

Flint, Inc. provided the following information: Projected merchandise purchases . . March $67,000 Budgeted cash disbursements April $75,000 Flint pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. General operating expenses are budgeted to be $25,000 per month of which depreciation is $2,000 of this amount. Flint pays operating expenses in the month incurred. Calculate Flint's budgeted cash disbursements for May. $ May $81,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management. Month Credit Sales January $ 300,000 (actual) February 400,000 (actual) March 629,000 (estimated) April 571,000 (estimated) May 800,000 (estimated) The company's collection activity on credit sales historically has been as follows. Collections in the month of the sale 50 % Collections one month after the sale 30 Collections two months after the sale 15 Uncollectible accounts 5 Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400, 000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter. Compute Spicer's budgeted cash balance at the ends of March, April, and May.
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Please fill in this chart
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