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11/21/23, 2:11 AM Chapter 6 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4687076&cmid=1260518&page=10 1/3 Dashboard / My courses / [Seneca 09/2023] HTM440NHA - Nardi / CHAPTER 6 - Budgeting / Chapter 6 Post-Class Homework

11/21/23, 2:11 AM Chapter 6 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4687076&cmid=1260518&page=10 2/3 Question 11 Not answered Mark 0.00 out of 23.00 Take me to the text Jessica Inc. provides you with the following budgeted information for two months in the current year. March April Sales $555,000 $720,000 Inventory Costs 200,000 360,000 Capital Expenditures 110,000 100,000 General and Administration Costs (including amortization) 85,000 100,000 Expectations: Cash sales represent 15% of total sales All sales on account are collected in the following month 60% of March’s $110,000 worth of capital expenditures is to be paid at the end of March. The remainder is to be paid in the following month. April's capital expenditure will be paid in May. Monthly amortization represents 15% of general and administration costs Inventory costs and general and administration costs are to be paid in the month in which they are incurred Dividends of $6,000 are expected to be declared in March and paid in April Jessica Inc. obtains the minimum financing needed to ensure at least a $9,000 cash balance at the end of the month through a note payable. Assume that any amount taken out of the bank loan may be repaid only at year end. As of March 1 Cash $30,000 Accounts Receivable* 209,000 Inventory 65,000 Long-Term Assets 120,000 Accumulated Depreciation 6,000 Accounts Payable 17,000 Dividends Payable (in March) 2,000 Notes Payable 265,000 Shareholder's Equity 101,000 *Comprised only of sales on account incurred in February Do not enter dollar signs or commas in the input boxes. Use the negative sign for any cash deficit. Prepare a cash budget for March and April. Jessica Inc. Cash Budget for March and April March April Opening Cash Balance $ $ Receipts: Cash from sales $ $ Collection from customers $ $ Total cash available $ $

11/21/23, 2:11 AM Chapter 6 Post-Class Homework https://www.ameengage.com/mod/quiz/review.php?attempt=4687076&cmid=1260518&page=10 3/3 English (en) English (en) Français - Canada (fr_ca) Français (fr) Disbursements: Inventory costs $ $ General and admin. costs $ $ Capital Expenditures $ $ Dividend Payment $ $ Total Cash Payments $ $ Cash Excess (Deficit) $ $ Financing Requirements: Notes Payable $ $ Loan Repayment Ending Cash Balance $ $ Explanation Jessica Inc. Cash Budget for March and April March April Opening Cash Balance 30,000 9,000 Receipts: Cash from sales $83,250 $108,000 Collection from customers 209,000 471,750 Total cash available 322,250 588,750 Disbursements: Inventory costs 200,000 360,000 General and admin. costs 72,250 85,000 Capital Expenditures 66,000 44,000 Dividend Payment 2,000 6,000 Total Cash Payments 340,250 495,000 Cash Excess (Deficit) (18,000) 93,750 Financing Requirements: Notes Payable 27,000 0 Loan Repayment Ending Cash Balance 9,000 93,750

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