Bluebird Ltd has provided the following forecasted items for the months of July through to September 2020.

July August September
$ $ $
Sales 13,000 14,000 15,000
Purchases 9,400 8,000 10,000
Operating expenses 3,600 6,400 5,000

 

Other Information:

  • 35% of Sales are cash sales, the remaining 65% of credit sales which are collected as follows:
    • 30% in the month of the sale
    • 50% in the month after the sale
    • 28% in the 2nd month after the sale
    • 2% are never collected due to the customer going bankrupt
  • Sales in the months of May and June were $11,000 and $10,000 respectively.
  • Operating expenses include depreciation expense. Depreciation expense each month is $900. All expenses and purchases are paid for in the same month that they are incurred.
  • Bluebird expects to sell some old machinery for $7,000 in August. New machinery worth $9,500 will be purchased in September.
  • The cash balance on 1st July 2020 is $5,700.

Required:

  1. Prepare a schedule of the Cash receipts from Accounts receivable showing the collections for the three months of July through to September.
  2. Prepare a Cash budget for Bluebird Ltd for the three months of July through to September 2020.

Click on Buy Solution and make payment. All prices shown above are in USD. Payment supported in all currencies. Price shown above includes the solution of all questions mentioned on this page. Please note that our prices are fixed (do not bargain).

After making payment, solution is sent within 2 to 5 minutes on your Email ID. But it may take up to 1 hour in case of high load on server. Solution is available in Word or Excel format unless otherwise specified.


If your question is slightly different from the above question, please contact us at info@myassignmentguru.com with your version of question.