Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Securitization wikipedia , lookup
Present value wikipedia , lookup
Internal rate of return wikipedia , lookup
Public finance wikipedia , lookup
Conditional budgeting wikipedia , lookup
Individual Savings Account wikipedia , lookup
Modified Dietz method wikipedia , lookup
Credit card interest wikipedia , lookup
Exercise 9‐27 Month Sales Purchases April $72,000 $42,000 May 66,000 48,000 June 60,000 36,000 J l July 78 000 78,000 54 000 54,000 Collections from customers are normally 70% in the month of sale, 20% in the month following the sale and 9% in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account Management plans to take full advantage of 2% discount allowed on purchases paid for by the 10th of the following month Budgeted August purchases are $60,000; Forecasted August sales are $66,000 Expected August disbursements for expenses are $14,400; August 1 cash balance is $22,000 ©Dr. Chula King All Rights Reserved Exercise 9‐27 (continued) Part 1: Prepare a schedule of expected cash collections for August Binghamton Film Corporation Expected Cash Collections For the Month of August Month Sales Percent Expected Collections June $60,000 9% $ 5,400 July 78,000 20% 15,600 August 66,000 70% 46,200 Total expected cash collections $67,200 ©Dr. Chula King All Rights Reserved Exercise 9‐27 (continued) Part 2: Prepare a schedule of expected cash disbursements for August Binghamton Film Corporation Expected Cash Disbursements For the Month of August July purchases (to be paid in August) $54,000 Less: 2% cash discount (1,080) Cash disbursements for purchases $52,920 Cash disbursements for expenses 14,400 Total expected cash disbursements $67,320 ©Dr. Chula King All Rights Reserved Exercise 9‐27 (continued) Part 3: Prepare a schedule of expected cash balance on August 31 Binghamton Film Corporation Expected Cash Balance August 31 Cash balance, August 1 $22,000 Add: Expected cash collections 67,200 Deduct: Expected cash disbursements (67,320) Expected cash balance $21,880 ©Dr. Chula King All Rights Reserved