-/1View PoliciesCurrent Attempt in ProgressScan Design provided the following budgeted information for April through July:JulyJuneMayApril$104,000 $123,000 $115,000 $132,000Projected salesProjected merchandise purchases $82,000 $92,000 $78,000 $66,000.The cash balance on June 1 is $12,000. The company pays 40% of merchandise purchases in the month purchasedand 60% in the following month.. General operating expenses are budgeted to be $31,000 per month of which depreciation is $3,000 of thisamount. Management pays operating expenses in the month incurredThe company makes loan payments of $4,000 per month of which $600 is interest and the remainder is principal.How much are budgeted cash disbursements for June?O $63,200.O $86,400.O $118.400.$102,800.8:38 P11/27/2hpfa4+f12SUprt scAdeletehomeend&7numbackspacelockhomeK4enterI

The cash disbursement needs to be computed by taking all cash payments. Depreciation is a non-cash…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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COVID 19 Co has forecast purchases on account to be $318,000 in March, $370,000 in April, $421,000 in May, and $493.000 in June. Sixty five percent of purchases are paid for in the month of purchase, the remaining 35% are paid in the following month, What is the budgeted Accounts Payable balance for June 30? Select one a. $172.550 b. $320,450 C $147.350 d. $273.650
Cash budgeting
Assume a merchandising company provides the following information from its master budget for the month of May: Sales Cost of goods sold Selling and administrative expenses Accounts receivable, May 1st Accounts receivable, May 31st If all of the company's sales are on account, what is the amount of cash collections from customers included in the cash budget for May? Multiple Choice $109,000 $106,000 $129,000 $ 125,000 $ 90,000 $ 24,000 $ 16,000 $ 35,000 $125,000
iiii
Cash budgetThe controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July Sales $86.000 $90,000 $95,000 Manufacturing costs 34,000 39,000 44,000 Selling and administrative expenses 15,000 16,000 22,000 Capital expenditures ___ __ 80,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $3,500 of the estimated monthly manufacturing costs. The annualinsurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of May 1…
The BRS Corporation makes collections on sales according to the following schedule: 40% in month of sale 55% in month following sale 5% in second month following sale The following sales have been budgeted: April May June Sales $110,000 $120,000 $110,000 Budgeted cash collections in June would be: Multiple Choice $115,500 $110,000 $110,550 $112,000
Accounting Consider the following third-quarter budget data for TAP & Brothers: TAP & Brothers Third-Quarter Budget Data July August September Credit Sales 256,167 262,962 282,872 Credit Purchases 97,465 111,565 137,292 Wages, Taxes, and Expenses 26,506 31,621 33,707 Interest 7,239 7,773 8,091 Equipment Purchases 54,832 61,271 0 The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be collected in the month of the sale, and the remaining 66% will be collected in the following month. Credit purchases will be paid in the month following the purchase. In June, credit sales were $138,282, and credit purchases were $102,770 July’s beginning cash is $184,797 If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e., end of…
What is the correct one
Indigo Company budgeted the following information for 2022: Budgeted purchases of merchandise ● ● May $105,000 Cost of goods sold is 40% of sales. Accounts payable is used only for merchandise inventory acquisitions. • Indigo purchases and pays for merchandise 70% in the month of acquisition and 30% in the following month. Selling and administrative expenses are budgeted at $36,000 for May and are expected to increase 5% per month. These expenses are paid during the month when incurred. In addition, depreciation is budgeted at $10,000 per month. Income taxes are $39,000 for July and are paid in the month incurred. Cash Disbursements June $ $110,000 Compute the amount of budgeted cash disbursements for July. July $103,000
Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Units to be produced 7,680 8,480 8,860 8,860 33,880 Direct material per unit 2 2 2 2 2 Total pounds needed for production 15,360 16,960 17,720 17,720 67,760 Add: Desired ending inventory 4,240 4,430 4,430 3,600 3,600 Total material required 19,600 21,390 22,150 21,320 71,360 Less: Beginning inventory 4,240 4,430 4,430 Pounds of direct material purchase requirements 19,600 17,150 17,720 16,890 71,360 Cost per pound $1.50 $1.50 $1.50 $1.50 $1.50 Total cost of direct material purchase $29,400 $25,725 $26,580 $25,335 $107,040 Total $107,040 Direct Labor Budget For the Year Ending Dec. 31, 2018 Quarter 1 Quarter 2 Quarter 3 Quarter 4 Total Units to be produced 7,680 8,480 8,860 Direct labor hours per unit 0.75 0.75 0.75 0.75 0.75 Total required direct labor hours 5,760 6,360 6,645 6,645 Labor cost per hour $25 $25 $25 $25 $25 Total direct labor cost $144,000 $159,000 $166,125 $ $635,250
COVID 19 Co has forecast purchases on account to be $312.000 in March, $377.000 in April, $421,000 in May, and $499,000 in June. Sixty percent of purchases are paid for in the month of purchase, the remaining 40% are paid in the following month. What are budgeted cash payments for May? Select one Oa $351.000 b. S403.400 C $125.000 Od $384.000
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