The following information is available from the controller's records for Penelope Ltd.:

All sales are on credit.Records show that 80 percent of the customers pay during the month of the sale,15 percent pay the month after the sale,and the remaining 5 percent pay the second month after the sale.Purchases are all paid the following month at a 1 percent discount.Cash disbursements for operating expenses in July were $8,000.
Prepare a cash budget for July.

Question

The following information is available from the controller's records for Penelope Ltd.:

All sales are on credit.Records show that 80 percent of the customers pay during the month of the sale,15 percent pay the month after the sale,and the remaining 5 percent pay the second month after the sale.Purchases are all paid the following month at a 1 percent discount.Cash disbursements for operating expenses in July were $8,000.
Prepare a cash budget for July.

Quizplus · Accepted Answer

The Answer of The following information is available from the controller's records for Penelope Ltd.:

All sales are on credit.Records show that 80 percent of the customers pay during the month of the sale,15 percent pay the month after the sale,and the remaining 5 percent pay the second month after the sale.Purchases are all paid the following month at a 1 percent discount.Cash disbursements for operating expenses in July were $8,000.
Prepare a cash budget for July.

The Following Information Is Available from the Controller's Records for Penelope