2. (Cash Disbursements) Snobby CrabShack expects to make purchases in the first quarter of 2009 asfollows:
January $84,000
February $96,000
March $78,000
Purchases in December in 2008 are expected to be $87,000. Thecompany expects that 55% of a monthâs purchases will be paid in themonth of purchase and 45% will be paid in the following month.Other cash operating expenses per month are $60,000. In addition,the company has $8,000 of depreciation per month.
Estimate cash disbursements related to purchases for eachmonth of the first quarter of 2009. What are the accounts payablerelated to purchases at March 31, 2009?
3. (Cash Budget) Snobby Crab Shackhas a cash balance at December 31, 2008 of $4,050 and wants tomaintain an ending cash balance of $2,000 per month, what isthe cash balance at the end of January, February and March 2009(assume any loans are non-interest bearing).
2. (Cash Disbursements) Snobby CrabShack expects to make purchases in the first quarter of 2009 asfollows:
January $84,000
February $96,000
March $78,000
Purchases in December in 2008 are expected to be $87,000. Thecompany expects that 55% of a monthâs purchases will be paid in themonth of purchase and 45% will be paid in the following month.Other cash operating expenses per month are $60,000. In addition,the company has $8,000 of depreciation per month.
Estimate cash disbursements related to purchases for eachmonth of the first quarter of 2009. What are the accounts payablerelated to purchases at March 31, 2009?
3. (Cash Budget) Snobby Crab Shackhas a cash balance at December 31, 2008 of $4,050 and wants tomaintain an ending cash balance of $2,000 per month, what isthe cash balance at the end of January, February and March 2009(assume any loans are non-interest bearing).
