 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
How to prepare a cash budget with an example?
Byron ltd estimated sales for the forthcoming months are:
Nov:[email protected] Dec [email protected] Jan [email protected] Feb [email protected] Past experience has shown that colletions from sales average: 25%cash recevied in the month of the sales 55%in the month following tha sale 20%two months following tha sale Prepare a cash budget? |
||||
|
||||
|
If I were you, I'd prepare a spreadsheet with columns for the months, and lines for the entries. The first line would have the sales amount listed under each month. The second line would use the info that 25% is received in the month of sale - so 25% of the sales number you show. The third line would show that 55% is collected in the following month - for example, under December you would enter 55% of the November sales. The next line would show 20% collected two months later, so 20% of November is collected in January. Once you do that, you will be able to add your columns for the cash budget. |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
Prepare a monthly cash budget for the next three months. You are presented with the following budget information: August September October Sales $630,000 $715,000 $845,000 ...
The CEO of Kingston Cart Inc. asked the Chief Financial Officer to prepare a Master Budget for the next three months, beginning July 1, 2010. The company's policy is to maintain a minimum cash balance of $6,000 at each month end. Sales are forecasted at an average selling price of $70 per cart....
Hi, My name is Jasdev Singh. I want to prepare a cash budget. Can you please help me for preparing the cash budget. Details are given below: Months Total sale Materials Wages Overhads Jan 20000 20000 ...
Cash budget for April may June , July
View more questions Search
|
