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afrazier
Aug 4, 2012, 03:04 PM
How do I prepare a Cash budget for June based on the data given. The cash balance for May is $15,000. Sales proceeds are collected as follows: 80% the month sale, 10% the second month, and 10% the third month. A/C receivable are $44,000 on May, $20,000 from April sales and $24,000 from May sales.

paraclete
Aug 4, 2012, 07:06 PM
Why does the word budget cause you to stop in your tracks, a % of this, a % of that, simple maths

afrazier
Aug 4, 2012, 07:14 PM
Simple. Hmm. I still can't figure where to start.
Beginning Cash $$
+ Cash collections:
(enter your collections schedule here)
= Total cash available: $$
Cash disbursements:
(enter your disbursements/expenses here)
-Total cash disbursed $$
= Ending cash balance $$

paraclete
Aug 5, 2012, 05:48 AM
Simple. Hmm. I still can't figure where to start.
Beginning Cash $$
+ Cash collections:
(enter your collections schedule here)
= Total cash available: $$
Cash disbursements:
(enter your disbursements/expenses here)
-Total cash disbursed $$
= Ending cash balance $$

something like that

80% are collected in the month of sale what remains must = 20% of that months sales one month on what remains is 10% inject these numbers into your table how much of May sales will you receive in June, How much of April sales will you receive in June You can make some calculations which will provide the sales for both April and May. I expect you have been provided with other information we have not seen