The expected sales for Uptown Clothing in the month of May are shown in the table below.Chelsea Rogers,the owner,gives credit to a select group of customers (20 percent of sales),but all others must pay cash.Of Chelsea's credit customers,80 percent pay her the month after the sale and 20 percent in the second month after sales.
Chelsea pays cash for 10 percent of her purchases.The other 90 percent she pays off by the end of the next month.Chelsea's operating expenses are paid the month after incurrence.Her operating expenses are about $7,000 each month,$500 of which is depreciation.Selling expenses have a fixed and a variable component.The fixed is $1,500 a month,and the variable is 10 percent of sales.Chelsea began May with $9,000 in cash.
Prepare a cash budget to determine Uptown Clothing's ending cash balance for May.

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The Answer of The expected sales for Uptown Clothing in the month of May are shown in the table below.Chelsea Rogers,the owner,gives credit to a select group of customers (20 percent of sales),but all others must pay cash.Of Chelsea's credit customers,80 percent pay her the month after the sale and 20 percent in the second month after sales.
Chelsea pays cash for 10 percent of her purchases.The other 90 percent she pays off by the end of the next month.Chelsea's operating expenses are paid the month after incurrence.Her operating expenses are about $7,000 each month,$500 of which is depreciation.Selling expenses have a fixed and a variable component.The fixed is $1,500 a month,and the variable is 10 percent of sales.Chelsea began May with $9,000 in cash.
Prepare a cash budget to determine Uptown Clothing's ending cash balance for May.

The Expected Sales for Uptown Clothing in the Month of May