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Description of Accounting: Cash budget

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Please help with the following problem.

Signal Florists (SF) operates a retail flower shop. Their sales for October total $5,000. They have projected revenue for the next three months as follows:

November $12,000
December $23,000
January $8,000
February $10,000

SF allows its customers a 3% discount if they pay cash and otherwise allows 30 days credit. Only 10% of their customers take the discount and pay in the month of purchase. The remaining 90% pay in the month following purchase.

Prepare a cash inflow budget for December, January, and February.

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Solution Summary

The problem deals with calculating the cash inflows for three months from provided information. It helps with preparing a cash inflow budget. Step by step calculations are given.

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Problem: Prepare a cash inflow budget for December, January, and February.

Solution:
The solution is presented in a Word document.

Thank you.

FINANCE

29. Signal Florists (SF) operates a retail flower shop. Their sales for October total $5,000. ...

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Chidi Ngene, M. Sc.
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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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