Javier Company developed the fellowing data for the weath of

Javier Company developed the fellowing data for the weath of Augast 1. Angust 1 eash balance $12,300 2. Cash sales in August 580,000 sales are cellected in menth of sale. I 5% is the follewing month, and 10% la the second month felontag the saler 4 Purchases for July were 550,000and for Asgust are $40,000 One-fourth of parchases are paid in the monih of purchase and the re-aining threeaarters in the Sollowing 5. Angeat salaries paid are 531,400, etlicles paid are $3,220, and depreciation ea the bailding is $10,000. Required A. Compute anticipated cash receipts from accounts recelvable in August 3 marks) B. Compate anticipated total cash available frem all searces in Angust (2 marks)

Solution

Answer A. Schedule of Expected Cash Collections from Accounts Receivable August Collection from Accounts Receivables June Sales - $40,000 X 10%                        4,000 July Sales - $40,000 X 15%                        6,000 Aug Sales - $30,000 X 70%                     21,000 Total cash Collections                     31,000 Answer B. Cash budget April Opening cash Balance                     12,300 Add:Receipts Cash Sales                     80,000 Collection from Accounts Receivable                     31,000 Total Cash available                   123,300 Less: Disbursements Cash Disbursement - Accounts Payable                     47,500 Salaries Expenses                     31,400 Utilities Paid                        3,220 Total Disbursement                     82,120 Cash Balance Closing                     41,180 Schedule of Cash payments to Suppliers August Cash Payment Jul Purchases - $50,000 X 75%                     37,500 Aug Purchases - $40,000 X 25%                     10,000 Total Cash Payment to Suppliers                     47,500