. The Finance officer of Your Natural Romance Co asked for a CASH BUDGET given the following data: October November December $320,000 132,000 $370,000 164,000 92,000 Sales $400,000 210,000 102,000...


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. The Finance officer of Your Natural Romance Co asked for a CASH BUDGET given the<br>following data:<br>October<br>November<br>December<br>$320,000<br>132,000<br>$370,000<br>164,000<br>92,000<br>Sales<br>$400,000<br>210,000<br>102,000<br>240,000<br>Operating Costs<br>Selling and Administrative Expenses 80,000<br>Capital Expenses<br>Among the sales figures, only 90% are treated as receivables, with the other value as down<br>payment. Six tenths of the receivables are collected in the following month and the rest a month<br>further. Semiannual depreciation costs $144,000. Of the remaining operating costs, 80% will be<br>paid in the month they are incurred and the rest, a month after.<br>Current assets as of October 1 include cash of $84,000, marketable securities of $50,000 and<br>accounts receivable of $396,000 ($300,000 from September sales and $96,000 from August<br>Sales). Sales on account in August and September were $240,000 and $300,000 respectively.<br>Current liabilities as of October 1 include $26,000 of accounts payable in September for<br>manufacturing costs. All selling and administrative expenses are paid in cash in the period they<br>are incurred. An estimated income tax of $48,000 will be made in November. The quarterly<br>dividend is expected to be declared in November and paid in December. Management wishes to<br>maintain a minimum cash balance of $80,000.<br>Construct a cash budget for the three months mentioned. Put the corresponding notes as<br>may be applicable (Note A, Note B, etc)<br>

Extracted text: . The Finance officer of Your Natural Romance Co asked for a CASH BUDGET given the following data: October November December $320,000 132,000 $370,000 164,000 92,000 Sales $400,000 210,000 102,000 240,000 Operating Costs Selling and Administrative Expenses 80,000 Capital Expenses Among the sales figures, only 90% are treated as receivables, with the other value as down payment. Six tenths of the receivables are collected in the following month and the rest a month further. Semiannual depreciation costs $144,000. Of the remaining operating costs, 80% will be paid in the month they are incurred and the rest, a month after. Current assets as of October 1 include cash of $84,000, marketable securities of $50,000 and accounts receivable of $396,000 ($300,000 from September sales and $96,000 from August Sales). Sales on account in August and September were $240,000 and $300,000 respectively. Current liabilities as of October 1 include $26,000 of accounts payable in September for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax of $48,000 will be made in November. The quarterly dividend is expected to be declared in November and paid in December. Management wishes to maintain a minimum cash balance of $80,000. Construct a cash budget for the three months mentioned. Put the corresponding notes as may be applicable (Note A, Note B, etc)

Jun 01, 2022
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