P21-22A Clipboard Office Supply’s sales are 75% cash and 25% credit.
(Use the rounded sales values.) Credit sales are collected in the month after
sale. Inventory purchases are paid 25% in the month of purchase and 75% the
following month. Salaries and sales commissions are also paid half in the month
earned and half the next month. Income tax is paid at the end of the year. The
April 30, 2011, balance sheet showed the following balances:
cash $25000
accounts payable
$53000
Salaries and commissions
payable $2500
Requirements
R1. Prepare
schedules of (a) budgeted cash collections, (b) budgeted cash payments for
purchases, and (c) budgeted cash payments for operating expenses. Show amounts
for each month and totals for May and June. Round your computations to
the nearest dollar.
Prepare a cash
budget. If no financing activity took place, what is the budgeted cash balance
on June 30, 2011?
TUTORIAL PREVIEW
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P21-21A
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May
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June
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Beginning inventory
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$13,000
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$22,100
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File name: P21-21A Clipboard Office Supply.xls File type: .xls PRICE: $10
