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COURSE DESCRIPTIONPLEASE SHOW ALL WORK Prepare a Cash Budget for SKI casts including the surplus or deficit each month.Dan Barnes, financial manager of SKI casts, is requesting a line of credit from the company’s bank. The company has produced the following sales estimates: $71,218 in November, $68,212 in December, $65,213 in January, $52,475 in February, $42,909 in March, $30,524 in April, $44,567 in May, $54,590 in June, $62,341 in July, and $70,132 in August. Collection estimates are as follows: 20% within the month of sale, 70% in the month following the sale, and 10% in the second month following the sale. The company allows a 2% discount on payments made during the month of sales. Plaster supplies expense is estimated as 85% of sales two months from now. Other relevant information is as follows: Payments for plaster supplies is made during the month following the one in which these costs have been incurred. Wages and salaries will amount to approximately $6,691 in January, $5,471 in February, $4,316 in March, $3,126 in April, $4,511 in May, and $5,629 in June. Lease payments under long-term lease contracts will be $2,500 a month. Depreciation charges will be $600 a month. Income tax payments of $8,000 will be due in March and June. A progress payment of $10,000 on a new building must be paid in April. Cash on hand on January 1 will amount to $3,000, and a minimum cash balance of $1,500 will be maintained throughout the cash budget period.

COURSE DESCRIPTIONPLEASE SHOW ALL WORK Prepare a Cash Budget for SKI casts including the surplus or deficit each month.Dan Barnes, financial manager of SKI casts, is requesting a line of credit from the company’s bank. The company has produced the following sales estimates: $71,218 in November, $68,212 in December, $65,213 in January, $52,475 in February, $42,909 in March, $30,524 in April, $44,567 in May, $54,590 in June, $62,341 in July, and $70,132 in August. Collection estimates are as follows: 20% within the month of sale, 70% in the month following the sale, and 10% in the second month following the sale. The company allows a 2% discount on payments made during the month of sales. Plaster supplies expense is estimated as 85% of sales two months from now. Other relevant information is as follows: Payments for plaster supplies is made during the month following the one in which these costs have been incurred. Wages and salaries will amount to approximately $6,691 in January, $5,471 in February, $4,316 in March, $3,126 in April, $4,511 in May, and $5,629 in June. Lease payments under long-term lease contracts will be $2,500 a month. Depreciation charges will be $600 a month. Income tax payments of $8,000 will be due in March and June. A progress payment of $10,000 on a new building must be paid in April. Cash on hand on January 1 will amount to $3,000, and a minimum cash balance of $1,500 will be maintained throughout the cash budget period.

COURSE DESCRIPTIONPLEASE SHOW ALL WORK Prepare a Cash Budget for SKI casts including the surplus or deficit each month.Dan Barnes, financial manager of SKI casts, is requesting a line of credit from the company’s bank. The company has produced the following sales estimates: $71,218 in November, $68,212 in December, $65,213 in January, $52,475 in February, $42,909 in March, $30,524 in April, $44,567 in May, $54,590 in June, $62,341 in July, and $70,132 in August. Collection estimates are as follows: 20% within the month of sale, 70% in the month following the sale, and 10% in the second month following the sale. The company allows a 2% discount on payments made during the month of sales. Plaster supplies expense is estimated as 85% of sales two months from now. Other relevant information is as follows: Payments for plaster supplies is made during the month following the one in which these costs have been incurred. Wages and salaries will amount to approximately $6,691 in January, $5,471 in February, $4,316 in March, $3,126 in April, $4,511 in May, and $5,629 in June. Lease payments under long-term lease contracts will be $2,500 a month. Depreciation charges will be $600 a month. Income tax payments of $8,000 will be due in March and June. A progress payment of $10,000 on a new building must be paid in April. Cash on hand on January 1 will amount to $3,000, and a minimum cash balance of $1,500 will be maintained throughout the cash budget period.

COURSE DESCRIPTIONPLEASE SHOW ALL WORK Prepare a Cash Budget for SKI casts including the surplus or deficit each month.Dan Barnes, financial manager of SKI casts, is requesting a line of credit from the company’s bank. The company has produced the following sales estimates: $71,218 in November, $68,212 in December, $65,213 in January, $52,475 in February, $42,909 in March, $30,524 in April, $44,567 in May, $54,590 in June, $62,341 in July, and $70,132 in August. Collection estimates are as follows: 20% within the month of sale, 70% in the month following the sale, and 10% in the second month following the sale. The company allows a 2% discount on payments made during the month of sales. Plaster supplies expense is estimated as 85% of sales two months from now. Other relevant information is as follows: Payments for plaster supplies is made during the month following the one in which these costs have been incurred. Wages and salaries will amount to approximately $6,691 in January, $5,471 in February, $4,316 in March, $3,126 in April, $4,511 in May, and $5,629 in June. Lease payments under long-term lease contracts will be $2,500 a month. Depreciation charges will be $600 a month. Income tax payments of $8,000 will be due in March and June. A progress payment of $10,000 on a new building must be paid in April. Cash on hand on January 1 will amount to $3,000, and a minimum cash balance of $1,500 will be maintained throughout the cash budget period.

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