Joanne Coffey owns a retail business. She sells all her products for cash or bank transfer and lodges all cash received to the business bank account at the end of every day. Her suppliers provide her with one month's credit. At 1 April, the business bank balance is €4160. Her budgeted sales for the month are €11701 and her budgeted purchases are €5849. Her purchases in March were €5090. Her other budgeted expenses for April were wages and salaries of €1768 and light and heat of €1082. The energy supplier issues bills every second month and they must be paid within one week. The bill for April/May is due arrive in the first week of June. The shop's rent is €1343 a month, payable every quarter (with the first payment of the year payable on January 2nd). Based on this, what is Joanne's budgeted closing cash balance at 30 April?

Joanne Coffey owns a retail business. She sells all her products for cash or bank transfer and lodges all cash received to the business bank account at the end of every day. Her suppliers provide her with one month's credit. At 1 April, the business bank balance is €4160. Her budgeted sales for the month are €11701 and her budgeted purchases are €5849. Her purchases in March were €5090. Her other budgeted expenses for April were wages and salaries of €1768 and light and heat of €1082. The energy supplier issues bills every second month and they must be paid within one week. The bill for April/May is due arrive in the first week of June. The shop's rent is €1343 a month, payable every quarter (with the first payment of the year payable on January 2nd). Based on this, what is Joanne's budgeted closing cash balance at 30 April?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 10EA: Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in...

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