DEVRY ACCT 504 Week 6 Case Study 3 - Cash Budgeting LBJ Company
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The cash budget was covered during Week 4 when we covered TCO D and you read Chapter 7 . There is also a practice case study to work on . Your Professor will provide the solution to the practice case study at the end of Week 5 . This case study should be uploaded by 11:59PM Mountain time of the Sunday ending Week 6 to the Week 6 Assignment Dropbox . You are encouraged to use the Excel template file provided in Doc Sharing . The LBJ Company has budgeted sales revenues as follows : April May June Credit sales $ 94,000 $ 89,500 $ 75,000 Cash sales 48,000 75,000 57,000 Total sales $ 142,000 $ 164,500 $ 132,000 Past experience indicates that 30 % of the credit sales will be collected in the month of sale and the remaining 70 % will be collected in the following month . Purchases of inventory are all on credit and 40 % is paid in the month of purchase and 60 % in the month following purchase . Budgeted inventory purchases are $ 195,000 in April , $ 135,000 in May , and $ 63,000 in June .