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Q#2
Q#2
cash budget for the first quarter 2015 the following information has been extracted from the
company s’ accounting records
1. All sales divided in equal part between cash and credit sales. 55 % of credit sales are
collected in the month of sales 40% are collected in the following month. Management
believes that only 20% of the a/c receivable outstanding on December 2014 will be
recovered that the recovery will be in January 2015
2. 60% of Purchase are paid for in the month of purchase the remaining 40% are paid for in
the month after acquisition
3. The December 31 2014 balance sheet disclosed the following selected figures cash
20,000 a/c receivable 55,000 and a/c payable 22,000
4. Company Maintains a 20,000 minimum cash balance at all time. Financing is available in
1,000 multiples at an 8% interest rate interest is paid ate the time of repaying principle.
5. Additional date
Jan Feb March
Required