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Business Paper

1083 words - 5 pages

Case 9-23
| 1. |a. |Sales budget: |April |May |June |Quarter |
| | |Budgeted sales in units |35,000 |45,000 |60,000 |140,000 |
| | |Selling price per unit |   ×   $8 |   ×   $8 |    ×   $8 |      ×    $8 |
| | |Total sales |$280,000 |$360,000 |$480,000 |$1,120,000 |
| | | | | | ...view middle of the document...

|

| |d. |Budgeted cash disbursements for merchandise purchases: |
| | | |April |May |June |Quarter |
| | |March purchases |$ 85,750 | | |$   85,750 |
| | |April purchases |110,000 |$110,000 | |220,000 |
| | |May purchases | |146,250 |$146,250 |292,500 |
| | |June purchases |              |              | 105,000 |    105,000 |
| | |Total cash disbursements |$195,750 |$256,250 |$251,250 |$  703,250 |

| 2. |Cravat Sales Company |
| |Cash Budget |
| |For the Three Months Ending June 30 |
| | |
| |April |May |June |Quarter |
|Cash balance, beginning |$ 14,000 |$ 10,250 |$ 10,000 |$ 14,000 |
|Add receipts from customers (Part 1 b.) | 230,000 | 286,000 | 370,000 | 886,000 |
|Total cash available | 244,000 | 296,250 | 380,000 | 900,000 |
|Less disbursements: | | | | |
|Purchase of inventory (Part 1 d.) |195,750 |256,250 |251,250 |703,250 |
|Sales commissions |35,000 |45,000 |60,000 |140,000 |
|Salaries and wages |22,000 |22,000 |22,000 |66,000 |
|Utilities |14,000 |14,000 |14,000 |42,000 |
|Miscellaneous |3,000 |3,000 |3,000 ...

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