Prepare a cash budget for the month of june


Boston Company developed the following budgeted data for the month of June:

A. The June 1st cash balance is $34,700.

B. Cash Sales in June are $65,000.

C. Credit Sales for June are expected to be $50,000. Credit sales for May were $60,000 and for April were $40,000. 70% of credit sales are collected in the month of sale, 20% are collected in the month following the sale, and the remaining 10% are collected in the second month following the sale.

D. Purchases for May were $80,000 and for June are $60,000. 25% of purchases are paid in the month of purchase and the remaining 75% in the month following the purchase.

E. June salaries are $35,400, utilities are $4,350, and depreciation on the building and equipment is $10,000.

Required: Prepare a cash budget for the month of June 2014.

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Accounting Basics: Prepare a cash budget for the month of june
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