You have been asked to prepare a December Cash Budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company’s operations: a) The cash balance on December 1 st is Rs. 40,000. b) Actual sales for October and November and expected sales for December are as follows: October November December Cash Sales Rs. 65,000 Rs. 70,000 Rs. 83,000 Sales on Account Rs. 400,000 Rs. 525,000 Rs. 600,000 Sales on account are collected over a three month period: 20% collected in the month of sale, 60% collected in the month following sale, 18% collected in the second month following sale, and The remaining is uncollectible. c) The purchases of inventory will total Rs. 280,000 for December. 30% of a month’s inventory purchases are made during the month of purchase. The accounts payable remaining from November’s inventory purchases total Rs. 161,000, all of which will be paid in December. d) Selling and administrative expenses are budgeted at Rs. 430,000 for December. Of this amount, Rs. 50,000 is for depreciation. e) A new Web server for the Marketing Department costing Rs. 76,000 will be purchased for cash during December and Dividends costing Rs. 9,000 will be paid during the month. f) The company maintains a minimum cash balance of Rs. 20,000. An open line of credit is available from the company’s bank to bolster the cash position as needed. Required: 1- Prepare a schedule of expected cash collection for December. 2- Prepare a schedule of expected cash disbursements for merchandise purchase for December. 3- Prepare a cash budget for December.
https://essay-help.us/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg 0 0 Essay help https://essay-help.us/wp-content/uploads/2021/08/whatsapp-logo-300x115.jpeg Essay help2019-05-02 13:51:062019-05-02 13:51:06You have been asked to prepare a December Cash Budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company’s operations: a) The cash