**Financial Planning for Siro Stereo: Analyzing a Bank Loan**During the last week of March, Siro Stereo's owner approached the bank for a $125,000 loan, to be made on April 1 and repaid on June 30, with an annual interest of 10%, resulting in an interest cost of $3,125. The owner aims to increase the store’s inventory by $100,000 in April and requires the loan for these inventory acquisitions. The bank’s loan officer needs more details about Siro Stereo’s ability to repay the loan and therefore asks to forecast the store’s June 30 cash position. On April 1, Siro Stereo is expected to have a $12,000 cash balance, $121,500 in accounts receivable, and $90,000 in accounts payable. The budgeted sales, merchandise purchases, and various cash disbursements for the next three months are as follows:| | April | May | June ||------------------|--------|--------|--------|| Sales | 350,000| 500,000| 550,000|| Mdse Purchases | 250,000| 200,000| 190,000|| Other Cash Disbursements: | | | || Payroll | 22,500 | 30,000 | 37,500 || Rent | 12,000 | 12,000 | 12,000 || Other Cash Expenses | 9,000 | 5,500 | 16,500 || Repayment of Bank Loan | | | 125,000|| Interest on Bank Loan | | | 3,125 |**Notes:**1. The budgeted April merchandise purchases include the inventory increase. All sales are on account. Company experience is that 10% of credit sales are collected in the month of sale, 60% in the month following the sale, 25% in the second month, 3% in the third, and the remainder is uncollectible.2. All merchandise is purchased on credit: 80% of the balance is paid in the month following a purchase, and the remaining 20% is paid in the second month. **Cash Disbursement Schedule for Educational Use**The image displays an Excel spreadsheet titled "Collection of Cash, Collection of Payments, and Cash Budget." It is focused on preparing a schedule of cash disbursements for the months of April, May, and June. The text within the spreadsheet provides guidelines for the disbursement schedule for Siro Stereo.**Instructions:**1. **Task Description:** - "Prepare a schedule of cash disbursement for April, May, and June. (Collection of the Accounts payable in March is as follows: April 72,000; May 18,000)."2. **Table Structure:** - **Title:** "Siro Stereo Schedule of Cash Payments" - **Columns:** - Three main columns are designated for each month: April, May, and June. - **Rows:** - The first row under the title lists "Prior months (A/P)" to indicate accounts payable from previous months. - Separate rows are labeled for each month (April, May, June). - The final row indicates "Total Cash Payments."3. **Tabs Mentioned:** - "Horizontal Analysis" - "Vertical Analysis" - "Ratio Analysis" - "High Low" - "What-if Analysis" - "Break-even"These tabs suggest additional financial analysis tools available in the spreadsheet for broader financial analysis and planning.This setup aims to help individuals understand how to plan and manage cash payments effectively, ensuring all accounts payable are addressed in a timely manner.

Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is…

2. Prepare a schedule of cash disbursement for April, May, and June. (Collection of the Accounts payable in March is as follows: April 72,000; May 18,000). Siro Stereo Schedule of Cash Payments April May June Prior months (A/P) April May June Total Cash Payments

2. Prepare a schedule of cash disbursement for April, May, and June. (Collection of the Accounts payable in March is as follows: April 72,000; May 18,000). Siro Stereo Schedule of Cash Payments April May June Prior months (A/P) April May June Total Cash Payments

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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Combong.bangibnsaEX 22-18 V Total cash collected in July, $163,050 Schedule of cash collections of accounts receivable OBJ. 5 Pet Place Supplies Inc., a pet wholesale supplier, was organized on May 1, 2016. Projected sales for each of the first three months of operations are as follows: May $134,000 June 155,000 00 July 169,000 All sales are on account. Sixty-five percent of sales are expected to be collected in boxit the month of the sale, 30% in the month following the sale, and the remainder in the e second month following the sale. ni vionel SHOW Prepare a schedule indicating cash collections from sales for May, June, and July. ME HOW
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Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: • Sales are budgeted at $305,000 for November, $325,000 for December, and $225,000 for January. • Collections are expected to be 65% in the month of sale and 35% in the month following the sale. The cost of goods sold is 80% of sales. • The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. • Other monthly expenses to be paid in cash are $22,600. Monthly depreciation is $28,500. . Ignore taxes. Assets Cash: Balance Sheet October 31 Accounts receivable Merchandise inventory Property, plant and equipment, net of $624,000 accumulated depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity The difference between cash receipts and cash…
Cash Over and Short Miller Enterprises deposits the cash received during each day at the end of the day. Miller deposited $48,287 on October 3 and $50,116 on October 4. Cash register records and other documents supporting the deposits are summarized as follows: 10/3 10/4 Cash sales $36,690 $40,310 Collections on account 10,875 9,813 Total receipts $47,565 $50,123 Required: 1. Calculate the amount of cash over or cash short for each day. Enter negative values as negative numbers. 2. Prepare the journal entry to record the receipt and deposit of cash on October 3. For those boxes in which no entry is required 3. Prepare the journal entry to record the receipt and deposit of cash on October 4. For those boxes in which no entry is required 4. CONCEPTUAL CONNECTION: If you were the manager with responsibility over the cash registers, how would you use this information?
What would be the cash disbursements for month 3? Description Month 1 Month 2 Month 3 Month 4 Material Purchases $ 175,000.00 $ 185,000.00 $ 215,000.00 $ 190,000.00 Amount paid in month of purchase 65.00% Amount paid in month after purchase 30.00% Amount paid two months after purchase 5.00% Discounts in month of purchase 3.50% Discount in month after purchase 1.00% Total Cash disbursements in month 3 Show your work below Description Month 1 Month 2 Month 3
Kat Ltd.'s September balance sheet contains the following information: Cash Accounts receivable. Allowance for doubtful accounts Merchandise inventory $ 37,500 (dr) 126,000 (dr) 2,800 (cr) 26,250 (dr) Management has designated $37,500 as the firm's minimum monthly cash balance. Other information about the firm and its operations is as follows: a. Sales revenues of $350,000, $420,000, and $312,500 are expected for October, November, and December, respectively. All goods are sold on account. b. The collection pattern for accounts receivable is 60% in the month of sale, 39% in the month following the month of sale, and 1% uncollectible, which is set up as an allowance. c. Cost of goods sold is 60% of sales revenues. d. Management's target ending balance of merchandise inventory is 10% of the current month's budgeted cost of goods sold. e. All accounts payable for inventory are paid in the month of purchase. f. Other monthly expenses are $49,250, which includes $3,500 of depreciation and…
The Morning Jolt Coffee Company has projected the following quarterly sales amounts for the coming year: QI $ 210 Sales 02 $ 270 Beginning receivables Sales Cash collections Ending receivables Q3 $ 330 a. Accounts receivable at the beginning of the year are $480. The company has a 45-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables Q1 210 Q1 04 $480 210 Q2 Q2 270 b. Accounts receivable at the beginning of the year are $480. The company has a 60-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. 270 Q3 Q3 330 330 Drair Q4 Q4 480 480 21.10 H
Part 1: 1. Identify and list the deposits in transit at the end of December. 2. Identify and list the outstanding checks at the end of December. Part 2: Prepare a bank reconciliation for December. Part 3: 1. Record the interest of $60 received from the bank. 2. Record the service charges of $130 deducted by the bank. 3. Record the return of the J. Left check of $280 due to insufficient funds 4. Record the checks outstanding at the end of the month. 5. Record the deposit in transit at the end of the month. Part 4: After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? If the company also has $280, of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet?
c. Accounts receivable at the beginning of the year are $335. The company has a 30-day collection period. Calculate cash collections in each of the four quarters by completing the following: Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Beginning receivables Sales Cash collections Ending receivables $ Q1 335 750 Q2 810 I Q3 890 Q4 980
4C. Draw up a cashbudget for Amal showing the balance at the end of each month, from the following information for the six months from July to December 2019: (a) Opening cash (including bank) balance on 1 July 2019 OMR 3600 (b) Production in units: Jan 500 Feb800 March 700 April 900 May1000 June850 July890 Aug1050 Sep650 Oct750 Nov 900 Dec800 (c) Raw materials used in production cost OMR 25 per unit. Of this, 75 per cent is paid in the month of production and remaining balance in the month after production. (d) Direct labour costs of OMR 20 per unit are payable in the month of production. (e) Variable expenses are OMR 10 per unit, payable 50 per cent in the same month as production and remaining balance in the month after production. (f) Sales at OMR 70 per unit: Jan 450 Feb 600 March 900 April 800 May 850 June 700 July 1,000 Aug 800 Sep 900 Oct 500 Nov 600 Dec 750 Debtors to pay their accounts one month after that in which sales is made (g) Fixed expenses of OMR 1,200 per month…