Homework Helper
$17/per page/
The CEO needs your help with cash projections for the period March 2013-June 2013. Accounting department has the following information:
| Â |
February 2013 |
March 2013 |
April 2013 |
May 2013 |
June 2013 |
|
Sales |
$ 350,000 |
$525,000 |
$424,000 |
$339,000 |
$565,000 |
|
Material Purchases |
$ 172,500 |
$ 342,000 |
$239,000 |
$178,000 |
$389,000 |
|
Payroll |
$24,500 |
$34,000 |
$29,000 |
$25,500 |
$38,500 |
|
Other Disbursements |
$25,000 |
$30,000 |
$10,000 |
$42,000 |
$32,000 |
(a) Sales offer 2% discount if paid in the same month. Sales are 60% cash, 40% credit. 2% of credit sales are bad debts. 40% credit portion of sales is paid equally during the next two months after the month of sale.
(b) Material purchases are paid 50% in the month of purchase and reaming 50% during the next month.
(c) Payroll and other disbursements are paid in the month these are incurred.
(d) Cash balance was $ 89,000 as of March 1, 2013.
You are required to prepare the Cash Projections for the period March 2013-June 2013. Please show your calculations that include closing balances for cash in hand.