Cash Budget and Flexible Budget
Question 1: – Cash Budget: Estimated sales January February March April May Total Coffee sales (units) 15,000 16,000 17,500 18,000 14,500 Your friend, Chris Coffee, has been running a successful coffee shop for the last couple of years. He has asked you to put together a cash budget. His regular accountant was too busy to help, but told Chris his depreciation expense was going to be $1,800 per year, using the straight-line method. He has supplied you with the following information (above) to help you put together his cash budget. The revenue for a coffee is $5 for a large, $4 for a medium and $3 for a small. 50% of his sales are Large coffees, 25% medium and 25%…
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