craw2488
Dec 11, 2007, 02:06 PM
Have a Managerial Accounting problem:
ABC Company budgeted the following transactions from May 2003
Sales (60% collected in month of sale) $180,000
Cash Operating Expenses $ 105,000
Cash Purchases of Capital Investments $ 50,000
Cash repayment on Note payable $ 40,000
Depreciation on equipment $ 25,000
There was $35,000 beginning cash balance. Sales for April were $75,000 and 40% expected to be collected in the month following the sales. The company desires to have a $20,000 and the cash balance. Determine the amount of cash overage or shortage.
4 possible answers
$42,000 shaortage
$23,000 overage
$22,000 shortage
$43,000 overage
I need help with which process to use to find the answers. A little lost.
ABC Company budgeted the following transactions from May 2003
Sales (60% collected in month of sale) $180,000
Cash Operating Expenses $ 105,000
Cash Purchases of Capital Investments $ 50,000
Cash repayment on Note payable $ 40,000
Depreciation on equipment $ 25,000
There was $35,000 beginning cash balance. Sales for April were $75,000 and 40% expected to be collected in the month following the sales. The company desires to have a $20,000 and the cash balance. Determine the amount of cash overage or shortage.
4 possible answers
$42,000 shaortage
$23,000 overage
$22,000 shortage
$43,000 overage
I need help with which process to use to find the answers. A little lost.