1. Budgeted cash receipts in March2. Budgeted accounts receivable at the end of March3. Budgeted inventory at the end of February VVV Company has the following sales budgetJanuary200,000February240,000March300,000April360,000Cost of sales is 70% of sales. Sales are collected 40% in the month of sale and60% in the following month. VVV keeps inventory equal to double the comingmonth's budgeted sales requirements. It pays for purchases 80% in the monthof purchase and 20% in the month after purchase. Inventory at the beginningof January is $190,000. VVV has monthly fixed costs of $30,000 including$6,000 depreciation. Fixed costs requiring cash are paid as incurred.

Budget means the expected value of future. Budget is not affected by the actual value as it is…

Answered: 1. Budgeted cash receipts in March 2.…

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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Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October: a. Sales are budgeted to be $163,000. About 85% of sales is cash; the remainder is on account. b. La Famiglia expects that, on average, 70% of credit sales will be paid in the month of sale, and 28% will be paid in the following month. c. Food and supplies purchases, all on account, are expected to be $103,000. La Famiglia pays 25% in the month of purchase and 75% in the month following purchase. d. Most of the work is done by the owners, who typically withdraw $6,000 a month from the business as their salary. (Note: The $6,000 is a payment in total to the two owners, not per person.) Various part-time workers cost $7,300 per month. They are paid for their work weekly, so on average 90% of their wages are paid in the month incurred and the remaining 10% in the next month. e. Utilities average $5,950 per month. Rent on the building is $4,100 per month. f. Insurance is paid…
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A-2
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Can you show how you got the numbers for question 6? Can you show me how to prepare the following: Prepare a selling and administrative expenses budget for January Prepare a budgeted income statement for January

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1. Budgeted cash receipts in March 2. Budgeted accounts receivable at the end of March 3. Budgeted inventory at the end of February