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You have the following information about a restaurant in Year 0007: ¦ Actual sales revenue in… 1 answer below »

You have the following information about a restaurant in Year 0007:

■ Actual sales revenue in November was $80,000.

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■ Actual purchases (cost of sales) in November was $30,000.

Sales revenue will be 40% cash. Credit card sales revenue is 60% of sales, of which 96% is collected in the month of sales; the remaining 4% is collected early in the following month. Purchases of inventory, 20% is paid in the month of purchase and the remaing 80% is paid in the month following the purchases. The condensed budgeted income statement for December, Year 0007, follows:

The wages and operating expenses included in the budgeted income statement will be paid in December, Year 0007. Rent was prepaid in January for the entire year. Prepare a cash budget for the month of December, Year 0007. November ending cash is $4,800.

 

 

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You have the following information about a restaurant in Year 0007: ¦ Actual sales revenue in… 1 answer below » was first posted on June 29, 2020 at 12:07 am.
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