18. YunCorp has prepared the following budget for September:$1,500,000Sales revenueCost of goods soldGross margin1,000,000$ 500,000Operating expenses450,000Operating income$ 50,000Cost of goods sold is three-fourths variable and period costs are two-thirds variable.Half of variable cost of goods sold consists of direct materials costs. Sales are planned asfollows:July28,000August31,000September30,000desYunCorp keeps finished goods inventory balances constant, but raw materials inventoriesare expected to be 15% of the following month's production needs. YunCorp collects 80%of each month's revenues in the month of sale, 15% in the following month, and theremainder is uncollectible. YunCorp pays for all costs in the month following purchase.YunCorp had $200,000 in their Cash account at the beginning of September.Prepare a cash budget for September.

The cash budget is prepared to determine cash flows. The cash budget also helps in evaluating…

18. YunCorp has prepared the following budget for September: $1,500,000 Sales revenue Cost of goods sold Gross margin 1,000,000 $ 500,000 Operating expenses 450,000 Operating income $ 50,000 Cost of goods sold is three-fourths variable and period costs are two-thirds variable. Half of variable cost of goods sold consists of direct materials costs. Sales are planned as follows: 28,000 July August 31,000 30,000 September YunCorp keeps finished goods inventory balances constant, but raw materials inventories are expected to be 15% of the following month's production needs. YunCorp collects 80% of each month's revenues in the month of sale, 15% in the following month, and the remainder is uncollectible. YunCorp pays for all costs in the month following purchase. YunCorp had $200,000 in their Cash account at the beginning of September. hes Prepare a cash budget for September.

18. YunCorp has prepared the following budget for September: $1,500,000 Sales revenue Cost of goods sold Gross margin 1,000,000 $ 500,000 Operating expenses 450,000 Operating income $ 50,000 Cost of goods sold is three-fourths variable and period costs are two-thirds variable. Half of variable cost of goods sold consists of direct materials costs. Sales are planned as follows: 28,000 July August 31,000 30,000 September YunCorp keeps finished goods inventory balances constant, but raw materials inventories are expected to be 15% of the following month's production needs. YunCorp collects 80% of each month's revenues in the month of sale, 15% in the following month, and the remainder is uncollectible. YunCorp pays for all costs in the month following purchase. YunCorp had $200,000 in their Cash account at the beginning of September. hes Prepare a cash budget for September.

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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