Hi there! I am just having some issues grasping the concept of Profit Budget and Cash Forecast in

Get perfect grades by consistently using www.college-experts.com. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper


Hi there! I am just having some issues grasping the concept of

Profit Budget and Cash Forecast

in

Managerial Accounting and was wondering if anyone could help. My professor suggested a scenario that I should practice with, but I am still having troubles understanding it completely. Here is the scenario:

Creassos Ltd. was formed in July 2012 with $20,000 of capital. $7,500 of this was used to purchase equipment. The owner budgeted for the following:

Wages and other expenses are paid in cash. In addition to the above, depreciation is $2,400 per year.

No inventory is held by the company.

What I need to understand is

a. How to Calculate the profit for each of the three months from July through September and the total

profit for the three months.

b. How to Calculate the cash balance at the end of each month.

c. How to create a Statement of Financial Position at the end of September.

Receipts ofAccountsPayments onOtherSalesReceivablePurchasesAccounts PayableWagesExpensesJuly$20,000$ 8,000$ 5,000$3,000$2,000Aug.30,000$20,00015,00010,0004,0002,000Sept.40,00030,00020,00020,0005,0003,000

Writerbay.net

Do you need help with this or a different assignment? We offer CONFIDENTIAL, ORIGINAL (Turnitin/LopesWrite/SafeAssign checks), and PRIVATE services using latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an A++ paper from our masters- and PhD writers.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper