ACCT504 Case Study 3 on Cash Budgeting

The cash budget was covered during Week 4 when we covered TCO D and you read Chapter 4. There is also a practice case study to work on. This case study should be uploaded to the Week 6 Assignment Dropbox by 11:59 p.m. mountain time on Sunday at the end of Week 6. 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 sales94,00089,50075,000

Cash sales 48,000 75,000 57,000

Total sales142,000164,500132,000

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; 40% is paid...