Carneros Inc. is a distributor of men\'s, women\'s, and children\'s shoes. The c
ID: 2483219 • Letter: C
Question
Carneros Inc. is a distributor of men's, women's, and children's shoes. The company imports shoes primarily from Europe and sells them to specialty clothing and shoe stores around the country. The company's chief accountant has gathered the following information to aid in the preparation of a cash budget for the third quarter of 2015. The company expects to collect cash on its Accounts Receivable during the three months as follows: Cash collections for each month are first calculated on which form? Complete the following cash budget for Carneros Inc.Explanation / Answer
1. Cash collections for each month are first calculated in the form of schedule of collection from sales 2 Carneros Inc Cash Budget For the Quarter ending Seprember 30,2015 July August September Estimated Cash Receipts from: Collections of accounts receivable $ 28,16,700 $ 27,94,770 $ 27,97,400 Interest revenue $ 2,575 $ 2,787 $ 2,010 Total Cash receipts $ 28,19,275 $ 27,97,557 $ 27,99,410 Estimated cash payments for: manufacturing costs $ 10,02,115 $ 10,79,078 $ 15,54,143 Selling and administrative expenses $ 2,06,390 $ 1,99,865 $ 2,13,100 Purchase of factory equipment $ 12,39,390 $ 16,27,010 $ 7,51,408 Interest expense $ 13,390 $ 11,175 $ 15,661 Income taxes $ 1,56,663 Total cash payments $ 24,61,285 $ 29,17,128 $ 26,90,975 Cash increase (decrease) $ 3,57,990 $ -1,19,571 $ 1,08,435 Cash balance at the beginning of the month $ 2,68,905 $ 6,26,895 $ 5,07,324 Cash balance at the end of the months $ 6,26,895 $ 5,07,324 $ 6,15,759 Minimum cash balance $ 2,57,500 $ 2,57,500 $ 2,57,500 Excess (deficiency) $ 3,69,395 $ 2,49,824 $ 3,58,259