For April 2021, Charlene has budgeted cash sales of £15,000 and credit sales of £32,000. All credit sales are budgeted to be paid one month after the month in which they were made. Budgeted credit sales for March 2021 are £30,000. Budgeted payments to suppliers are £20,000 while employees will be paid £7,500. New office equipment with a cost of £5,760 and a 4 year useful economic life will be paid for on 1 April 2021. It is Charlene's policy to charge depreciation on office equipment on a monthly basis starting in the month in which it is acquired. £6,000 rent for the three months to 30 June 2021 will also be paid on 1 April 2021. Two thirds of this rent will be prepaid at 30 April 2021. Charlene is budgeting a positive cash balance at the bank of £4,560 on 1 April 2021. What is Charlene's budgeted cash balance at the bank at 30 April 2021?

Question

Quizplus · Accepted Answer

The Answer of For April 2021, Charlene has budgeted cash sales of £15,000 and credit sales of £32,000. All credit sales are budgeted to be paid one month after the month in which they were made. Budgeted credit sales for March 2021 are £30,000. Budgeted payments to suppliers are £20,000 while employees will be paid £7,500. New office equipment with a cost of £5,760 and a 4 year useful economic life will be paid for on 1 April 2021. It is Charlene's policy to charge depreciation on office equipment on a monthly basis starting in the month in which it is acquired. £6,000 rent for the three months to 30 June 2021 will also be paid on 1 April 2021. Two thirds of this rent will be prepaid at 30 April 2021. Charlene is budgeting a positive cash balance at the bank of £4,560 on 1 April 2021. What is Charlene's budgeted cash balance at the bank at 30 April 2021?

For April 2021, Charlene Has Budgeted Cash Sales of £15,000