31. Budgets for Cash Collections from Sales and Cash Payments for Purchases. Car Products, Inc., produces car covers. The dollar amount of the company's quarterly sales and direct materials purchases are projected to be as follows (this information is derived from the previous exercises): 1st 2nd 3rd 4th Sales $ 3,510,000 $ 5,850,000 $ 7,020,000 $ 4,680,000 Direct materials purchases 434,928 $ 649,584 $ 696,336 $ 543,408 Assume all sales are made on credit. The company expects to collect 80 percent of sales in the quarter of sale and 20 percent the quarter following the sale. Accounts receivable at the end of last year totaled $600,000, all of which will be collected in the first quarter of the coming year. Assume all direct materials purchases are on credit. The company expects to pay 90 percent of purchases in the quarter of purchase and 10 percent the following quarter. Accounts payable at the end of last year totaled $45,000, all of which will be paid in the first quarter of this coming year. Required: a. Prepare a budget for cash collections from sales for Car Products, Inc. Use a format similar to the top section of Figure 9.5. b. Prepare a budget for cash payments for purchases of materials for Car Products, Inc. Use a format similar to the middle section of Figure 9.5. Round to the nearest dollar.

31. Budgets for Cash Collections from Sales and Cash Payments for Purchases. Car Products, Inc., produces car covers. The dollar amount of the company's quarterly sales and direct materials purchases are projected to be as follows (this information is derived from the previous exercises): 1st 2nd 3rd 4th Sales $ 3,510,000 $ 5,850,000 $ 7,020,000 $ 4,680,000 Direct materials purchases 434,928 $ 649,584 $ 696,336 $ 543,408 Assume all sales are made on credit. The company expects to collect 80 percent of sales in the quarter of sale and 20 percent the quarter following the sale. Accounts receivable at the end of last year totaled $600,000, all of which will be collected in the first quarter of the coming year. Assume all direct materials purchases are on credit. The company expects to pay 90 percent of purchases in the quarter of purchase and 10 percent the following quarter. Accounts payable at the end of last year totaled $45,000, all of which will be paid in the first quarter of this coming year. Required: a. Prepare a budget for cash collections from sales for Car Products, Inc. Use a format similar to the top section of Figure 9.5. b. Prepare a budget for cash payments for purchases of materials for Car Products, Inc. Use a format similar to the middle section of Figure 9.5. Round to the nearest dollar.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 13EA: What is the amount of budgeted cash payments if purchases are budgeted for $420,000 and the...

See similar textbooks

Similar questions

What is the amount of budgeted cash payments if purchases are budgeted for $190,500 and the beginning and ending balances of accounts payable are $21,000 and $25,000, respectively?
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $135,000 $162,000 $225,000 Manufacturing costs 57,000 70,000 81,000 Selling and administrative 47,000 49,000 86,000 expenses Capital expenditures 54,000 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 $10,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. 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 September 1…
Calculate cash? Calculate Accounts Payable? Please show formulas and calculations in spreasheet
How do I prepare a schedule of cash collected from customers for the quarter ended March 31, 20X1?
f) The Cathy Specialist Corporation approached you to compile a cash disbursement schedule for the month of March, April and May. Use the following information. Sales: January-RMS20,000; February-RM540,000; March-RM550,000; April=RM600,000; May-RM660,000; June-RM670,000. Purchases: Purchases are calculated as 70% of the following month's sales, 50% of purchase are made in cash, 30% of purchases are settled one month after purchase, and the remaining 20% of purchase are settled two months after purchase. c) d) e) g) h) the firm's expected cash receipts for a) b) Rent: The firm pays rent of RM9,500 per month. Wages & salaries: the fixed wage and salary costs are RM7,500 per month plus a variable cost of 6.5% of the current month's sales. Taxes: the tax bill to be paid in May amount to RM57,500. Fixed asset outlay: new equipment will be acquired during March at a cost of RM85,000. Interest payment: an amount of RM32,000 for interest is due in March. Cash Dividend: Dividends of RM15,000…
I ne Tollowing information is available from various budgets for the current period: Account Cash Accounts Receivable Merchandise Inventory Insurance Expense (expense incurred during the period) Equipment Depreciation Expense - Equipment (expense incurred during the period) Budget Cash budget Amount $20,000 Schedule of cash receipts from customers 38,000 Inventory, purchases, and cost of goods sold budget 47,000 Selling and administrative expense budget 2,000 Capital expenditures budget 31,000 Selling and administrative expense budget 1,000 The following balances are available from the balance sheet at the end of the previous year: Prepaid Insurance Equipment Accumulated Depreciation Equipment $6,000 22,000 1,000 What would be the amount of total assets on the budgeted balance sheet?
You are provided with the following information taken from Sage Hill Inc's March 31, 2027, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 1 2 3. 5. 6. 7. Additional information concerning Sage Hill Inc. is as follows. Gross profit is 24% of sales. Actual and budgeted sales data: March (actual) April (budgeted) March April $18.840 $47.100 $62460 $12,280 72.700 23.120 37,100 123,400 22,910 Sales are both cash and credit, Cash collections expected in April are: 152.900 12.320 (40% of $47.100) (60% of $72,700) Half of a month's purchases are paid for in the month of purchase and half in the following month Cash disbursements expecte Purchases March Purchases April $22,910 28,910 $51820 Cash operating costs are anticipated to be $12,110 for the month of April. Equipment costing $2,530 will be purchased for cash in April. The company wishes to maintain a minimum cash balance of $12,240. An…
please help me these questions
as
1. What are the estimated cash disbursements for inventories in April?
Garden Depot Is a retailer that provided the following budgeted cash flows for next year. 1st Quarter 2nd Quarter $410,000 $ 260,000 $ 316,000 $ 286,000 3rd Quarter $ 290,000 $ 276,000 Total cash receipts Total cash disbursements The company's beginning cash balance for next year will be $36,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly Interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume Interest is not compounded. Required: Prepare the company's cash budget for next year. Note: Repayments, Interest, and cash deficiencies should be indicated by a minus sign. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing Borrowings Repayments Interest Total financing Ending cash balance…
Jaborosa, Inc., a merchandising company, has provided the following budgeted amounts for the next budget period. Beginning cash balance Cash collections Payments for: Purchases of merchandise inventory Selling and administrative expenses Capital expenditures $30,700 680,000 O A. $(17,700) OB. $710,700 OC. $290,900 O D. $32,300 349,300 70,500 308,600 A minimum cash balance of $30,000 is required to be maintained. The company can borrow in increments of $10,000 as and when required. Assume the company can borrow the needed funds at the end of the period. Calculate the ending cash balance for the budget period. C...