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Lansing Auto Parts Inc has projected sales of $25000 in October $35000 in November and $30000 in December Of the companys sales 20 percent are paid for by cash and 80 percent are sold on

Lansing Auto Parts, Inc., has projected sales of $25,000 in October, $35,000 in November, and $30,000 in December. Of the company’s sales, 20 percent are paid for by cash and 80 percent are sold on credit. The credit sales are collected one month after sale. Determine collections for November and December. Also assume that the company’s cash payments for November and December are $30,400 and $29,800, respectively. The beginning cash balance in November is $6,000, which is the desired minimum balance. Prepare a cash budget with borrowing needed or repayments for November and December. (You will need to prepare a cash receipts schedule first.)

Apr 24 2020 View more View Less

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