Prepare a cash budget.

Prepare a cash budget.
(SO 8), AP
You are provided with the following information taken from Washburne Inc.’s March 31, 2012, balance sheet.
Cash $ 11,000
Accounts receivable 20,000
Inventory 36,000
Property, plant, and equipment, net of depreciation 120,000
Accounts payable 22,400
Common stock 150,000
Retained earnings 11,600

Additional information concerning Washburne Inc. is as follows.
1. Gross profit is 25% of sales.
2. Actual and budgeted sales data:
March (actual) $46,000
April (budgeted) 70,000

3. Sales are both cash and credit. Cash collections expected in April are:
March $18,400 (40% of $46,000)
April 42,000 (60% of $70,000)

4. Half of a month’s purchases are paid for in the month of purchase and half in the following month. Cash disbursements expected in April are:
Purchases March $22,400
Purchases April 28,100

5. Cash operating costs are anticipated to be $11,200 for the month of April.
6. Equipment costing $2,500 will be purchased for cash in April.
7. The company wishes to maintain a minimum cash balance of $9,000. An open line of credit is available at the bank. All borrowing is done at the beginning of the month, and all repayments are made at the end of the month. The interest rate is 12% per year, and interest expense is accrued at the end of the month and paid in the following month.

Prepare a cash budget for the month of April. Determine how much cash Washburne Inc. must borrow, or can repay, in April.
Apr. borrowings $1,800

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
WeCreativez WhatsApp Support
Our customer support team is here to answer your questions. Ask us anything!
👋 Hi, how can I help?