Please proceed to the “Analysis” worksheet and complete the basic problem requirements. Complete the problem requirements by entering appropriate amounts or formulas in shaded worksheet cells: a. Complete the monthly cash budgets for the second quarter of 2010 using the format shown on the “Analysis” worksheet. Note that the ending cash balance for June is provided as a check figure.
Complete the Modeling: Step 1: Analysis of cash receipts from sales: From Budgeted Income Statement April May June Total Sales: $ 224,000 $ 272,000 $ 304,000 % cash transactions: 40% 40% 40% Total Cash Sales: $ 89,600 $ 108,800 $ 121,600 March April May June Total Credit Sales: $ 258,462 $ 134,400 $ 163,200 $ 182,400 Credit Sales % Collected April May June February sales in accounts receivable: $ 204,800 $ 71,680 March sales: 65% 168,000 March sales: 35% 90,462 April sales: 65% 87,360 April sales: 35% 47,040 May sales: $ 163,200 65% 106,080 Total cash collections form credit sales: $ 239,680 $ 177,822 $ 153,120 Step 2: Analysis of cash payments for cost of goods sold and operating expenses: Cash Purchases From Budgeted Income Statement April May June Cost of goods sold: $ 153,600 $ 182,400 $ 201,600 Operating expenses: 35,200 40,000 43,200 Total cost of goods sold and operating expenses: $ 188,800 $ 222,400 $ 244,800 Less items not paid in current month: 50,880 54,240 56,480 Cash paid for cost of goods sold and operating expenses: $ 239,680 $ 276,640 $ 301,280 Cash Cash Payments Purchases % Paid April May June April 1, 2010 current liabilities: $ 112,160 $ 112,160 April cash purchases: $ 239,680 90% 215,712 April cash purchases: $ 239,680 10% 23,968 May cash purchases: $ 276,640 90% 248,976 May cash purchases: $ 276,640 10% 27,664 June cash purchases: $ 301,280 90% 271,152 Total cash payments: $ 327,872 $ 272,944 $ 298,816 a. Cash Budget MARINE TECH, INC. Cash Budget For the months of April, May, and June, 2010 April May June Beginning Cash Balance $ 22,400 $ 82,710 $ 24,388 Cash Receipts: From cash sales made in current month 89,600 108,800 121,600 From credit sales made in: February (from analysis in Step 1 above) 71,680 March (from analysis in Step 1 above) 168,000 90,462 April (from analysis in Step 1 above) 87,360 47,040 May (from analysis in Step 1 above) 106,080 Total Cash Available $ 351,680 $ 369,332 $ 299,108 Cash Disbursements: For cost of goods…
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