Zilly Co. predicts sales of $400,000 for June. Zilly pays a sales manager a monthly salary of $6,000 and a commission of 8% of that month’s sales dollars.
Prepare a selling expense budget for the month of June.
The total selling expense budget for the month of June will be $38,000.
Monthly salary to sales manager
Selling Expense Budget
For the month of June
Add: Monthly salary to sales manager
Selling expense budget
Foyert Corp. requires a minimum $30,000 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans at monthend. The cash balance on October 1 is $30,000, and the company has an outstanding loan of $10,000. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow. Prepare a cash budget for October, November, and December. (Round interest payments to the nearest whole dollar.)
Jasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and 30% are for cash. Credit sales are collected in full in the month following the sale. The company forecasts sales of $525,000 for April, $535,000 for May, and $560,000 for June. The beginning balance of accounts receivable is $400,000 on April 1. Prepare a schedule of budgeted cash receipts for April, May, and June.
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