Pup Collar Corporation Is in the Process of Preparing Its

Essay

Pup Collar Corporation is in the process of preparing its cash budget for 2014. The beginning Cash balance is estimated to be $40,700. Sales on account during 2014 are estimated to be $500,000. Cash sales during 2014 are estimated to be $225,000. In July 2014, equipment will be purchased for cash; the cost of the equipment is estimated to be $145,000. Purchases of inventory on account during 2014 are estimated to be $265,000. Total operating expenses for 2014 are estimated to be $300,000. Ten percent of this amount represents Amortization Expense. All cash operating expenses are paid as incurred. The January 1, 2014, balance in Accounts Receivable is estimated to be $15,000; the January 1, 2014, balance in Accounts Payable is estimated to be $12,000. Accounts Receivable on December 31, 2014, is estimated to be 60% of the January 1, 2014, balance. Accounts Payable on December 31, 2014, is estimated to be 75% of the January 1, 2014, balance.
Prepare a cash budget for Pup Collar Corporation for 2014.