Here are the relevant estimates for the budget preparation of Marvel Corporation for the fourth quarter of 2022: Credit sales Credit purchases Cash disbursements: Wages, taxes, and expenses Interest Equipment Credit sales collections: Collected in month of sale Collected month after sale Never collected September credit sales September credit purchases Beginning cash balance instructions: October 1428 896 857 338 390 432 33 488 0 36% 62% 2% 1271222 762 733 574 653 November 1661 520 996 979 443 094 33 488 177 968 2.1 Explain the role of cash budget. 2.2 Using the above information, complete the following cash budget. purchases are paid one month after the purchase. December 1227 856 736 714 377 608 33 488 107 856 Assume that all credit

11. Calculating the Cash Budget Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. LO 3 April May June $598,000 282,000 $689,000 $751,000 Credit sales 302,000 338,000 Credit purchases Cash disbursements 137,000 129,000 179,000 Wages, taxes, and expenses 15,600 15,600 15,600 Interest 53,500 6,600 248,000 Equipment purchases The company predicts that 5 percent of its credit sales will never be collected 35 percent of its sales will be collected in the month of the sale, and the re- maining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, com- plete the following cash budget: April May June $182,000 Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases 289,000 Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements…

How much should this company expect in cash collections for the month of January? ROUND TO NEAREST WHOLE DOLLAR

Bhupatbhai