Redding Company Cash Budget
ReddingCompany Cash Budget 2. Redding Company has budgeted sales revenues as follows: June July August Credit sales 135,000 145,000 90,000 Cashsales 90,000 255,000 195,000 Totalsales 225,000 400,000 285,000 Pastexperienceindicatesthat60%ofthecreditsaleswillbecollectedinthemonthofsaleandthe remaining40%willbecollectedinthe followingmonth.Purchasesofinventoryarealloncreditand50% ispaidinthemonthofpurchaseand50%inthemonthfollowingpurchase.Budgetedinventory purchasesare: June 300,000 July 250,000 August 105,000 Othercashdisbursementsbudgeted:(a)sellingand…