Accounting – cornerstone exercise 9-30 (algorithmic)

eBookeBookeBookeBookeBookeBookeBookeBook

Exercise 9-45
Cash Budget

Links to learning objectives referenced by this question can be accessed in the “Additional Resources” drop-down menu above.

The owner of a small mining supply company has requested a cash budget for June. After examining the records of the company, you find the following:

  1. Cash balance on June 1 is $1,230.
  2. Actual sales for April and May are as follows:

  3. Credit sales are collected over a three-month period: 40 percent in the month of sale, 35 percent in the second month, and 20 percent in the third month. The sales collected in the third month are subject to a 2 percent late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible.
  4. Inventory purchases average 65 percent of a month’s total sales. Of those purchases, 20 percent are paid for in the month of purchase. The remaining 80 percent are paid for in the following month.
  5. Salaries and wages total $12,500 per month, including a $4,500 salary paid to the owner.
  6. Rent is $4,340 per month.
  7. Taxes to be paid in June are $6,780.

The owner also tells you that he expects cash sales of $19,500 and credit sales of $52,000 for June. No minimum cash balance is required. The owner of the company doesn’t have access to short-term loans.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency