The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 200x to be as follows:
$\begin{array} { l r r } & \underline{\text { Sales }} & \underline{\text { Purchases }} \\\text { August } & \$ 25,000 & \$ 17,000 \\\text { September } & 15,000 & 19,500 \\\text { October } & 25,000 & 29,000 \\\text { November } & 30,000 & 20,000 \\\text { December } & 26,000 & 24,000\end{array}$ 65% of sales are on credit.On the basis of past experience,50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale.Purchases are paid 30 days after they are incurred.The firm had a cash balance of $5,000 as of September 30^th,and its minimum required cash balance is $4,000.It had no beginning loan balance.Prepare a cash budget for October,November and December.

Question

The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 200x to be as follows:

\begin{array} { l r r } & \underline{\text { Sales }} & \underline{\text { Purchases }} \\\text { August } & \$ 25,000 & \$ 17,000 \\\text { September } & 15,000 & 19,500 \\\text { October } & 25,000 & 29,000 \\\text { November } & 30,000 & 20,000 \\\text { December } & 26,000 & 24,000\end{array}

65% of sales are on credit.On the basis of past experience,50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale.Purchases are paid 30 days after they are incurred.The firm had a cash balance of $5,000 as of September 30^th,and its minimum required cash balance is $4,000.It had no beginning loan balance.Prepare a cash budget for October,November and December.

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The Answer of The Amber Magic Shoppe has forecast its sales revenues and purchases for the last 5 months of 200x to be as follows: $\begin{array} { l r r } & \underline{\text { Sales }} & \underline{\text { Purchases }} \ \text { August } & \$ 25,000 & \$ 17,000 \ \text { September } & 15,000 & 19,500 \ \text { October } & 25,000 & 29,000 \ \text { November } & 30,000 & 20,000 \ \text { December } & 26,000 & 24,000 \end{array}$ 65% of sales are on credit.On the basis of past experience,50% of the accounts receivable are collected the month after the sale and the remainder are collected 2 months after the sale.Purchases are paid 30 days after they are incurred.The firm had a cash balance of $5,000 as of September 30^th,and its minimum required cash balance is $4,000.It had no beginning loan balance.Prepare a cash budget for October,November and December.

The Amber Magic Shoppe Has Forecast Its Sales Revenues and Purchases