A cash budget, with a total column, for the quarter ending March 31, 2024, showing theexpected cash receipts and payments for each month and the ending cash balance for eachof the three months, given that no financing activities took place.(b) Another team member who is preparing the Budgeted Balance Sheet for the business forthe same quarter ending March 31, 2022 and has asked you to furnish him with the figuresfor the expected trade receivables and payables to be included in the statement. Is that areasonable request? If yes, what should these amounts be? Pelican Merchandising & More is a family-owned store. The business is now approaching theend of the year and is in the process of identifying its cash needs for the first quarter of the newyear. You are the management accountant of the entity and have been tasked to prepare the cashbudget for the business for the quarter ending March 31, 2022.(i)Extracts from the sales and purchases budgets are as follows:Month2021 - 2022CashSalesSalesPurchasesCashPurchasesOnOnAccountAccount$138,100$480,000$600,000$650,000$345,000$380.000$400,000$480,000November 2021December 2021$25,800$44,625$30.400$156,500January 2022February 2022$170.975$135,740$700,000March 2022$226,420$800,000$55,100$540,000(ii)An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 4/30, n90:55% in the month of sale35% in the first month following the sale8% in the second month following the saleThe remaining 2% is expected to be uncollectible(iii)Accounts payable are settled as follows, in accordance with the credit terms 2/30, n60:85% in the month in which the inventory is purchased15% in the following monthThe management of Pelican Merchandising has negotiated with a tenant to sublet officespace to her beginning February 1. The rental is expected to be $552,000 per annum. Thefirst month's rent along with one month's safety deposit is expected to be collected onFebruary 1. Thereafter, monthly rental income becomes due at the beginning of eachmonth.(iv)(v)February. The manager has made arrangement with the suppliers to make a cash deposit of40% upon signing of the agreement in February. The balance will be settled in five (5) equalmonthly instalments beginning March of 2022.Office Furniture & Fixtures, which is estimated to cost $350,000, will be purchased in(vi) The management of Pelican Merchandising is in the process of upgrading its fleet of motorvehicles. During February the business expects to sell an old delivery motor van that cost$540,000 at a loss of $34,000 to an employee. Accumulated depreciation on this motor vanat that time is expected to be $246,000. The employee will be allowed to pay a depositequal to 60% of the selling price in February; the balance will be settled in two equalamounts in March & April of 2022.(vii) Fixed operating expenses which accrue evenly throughout the year, are estimated to be$2,088,000 per annum, which include depreciation on non-current assets of $42,000 permonth and are expected to be settled monthly.(viii) Other operating expenses which accrue evenly throughout the year are expected to be$696,000 per annum and will be settled monthly.Continued .Those who fall to prepare, are preparing to fall' uriel salmonPage 2PART 2 FINAL ASSESSMENT _DECEMBER 2021Continued..A long-term bond purchased by Pelican Merchandising 2 years ago, with a face value of$450,000 will mature on January 15, 2022. To meet the financial obligations of thebusiness, management has decided to liquidate the investment upon maturity. On that datesemi-annual interest computed at a rate of 8%% per annum is also expected to be(ix)collected.A compensation payment of $355,000 to a former employee for a back injury sustained inan accident in the business storage facility, not covered by insurance, becomes due andpayable on January 25, 2022.(x)(xi) Wages and salaries are expected to be $3,264,000 per annum and will be paid monthly.(xii).The cash balance on March 31, 2022 is expected to be an overdraft of $253,000

A cash budget, with a total column, for the quarter ending March 31, 2022, showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no financing activities took place. Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter ending March 31, 2022 and has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable request? If yes, what should these amounts be?

A cash budget, with a total column, for the quarter ending March 31, 2022, showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no financing activities took place. Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter ending March 31, 2022 and has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable request? If yes, what should these amounts be?

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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Required:(a) The business needs to have a sense of its future cash flows and therefore requires thepreparation of the following:▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each ofthe months July to September. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account)for each of the months July to September.▪ A cash budget, with a total column, for the quarter ending September 30, 2022, showing theexpected cash receipts and payments for each month and the ending cash balance for eachof the three months, given that no financing activities took place.
Toyota & Sons is a family-owned auto-parts store. You are the management accountant of theconcern and have been given the task of preparing the cash budget for the business for thequarter ending March 31, 2024. Your data collection has yielded the following:(i) Extracts from the sales and purchases budgets are as follows:MonthNovember 2023 – March 2024CashSalesSalesOnAccountPurchasesNovember $151,100 $480,000 $375,000December $145,500 $600,000 $360,000January $159,025 $700,000 $508,000February $169,350 $650,000 $400,000March $176,200 $800,000 $521,000(ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale.25% in the second month following the sale.(iii) Expected purchases include cash purchases of $28,000 in January and $21, 000 in March.All other purchases are on account. Accounts payable…
A company has completed the operating budget and the cash budget. It is now preparing the budgeted balance sheet. Please use the below image as your guide for the next 5 questions. )dentify the document that contains accounts receivable A B C D E
Pelican Merchandising & More is a family-owned store. The business is now approaching the end of the year and is in the process of identifying its cash needs for the first quarter of the new year. You are the management accountant of the entity and have been tasked to prepare the cash budget for the business for the quarter ending March 31, 2022. (i) Extracts from the sales and purchases budgets are as follows:Month2021 - 2022CashSalesSalesOn AccountCashPurchasesPurchasesOnAccountNovember 2021 $138,100 $480,000 $345,000December 2021 $156,500 $600,000 $25,800 $380,000January 2022 $170,975 $650,000 $44,625 $400,000February 2022 $135,740 $700,000 $30,400 $480,000March 2022 $226,420 $800,000 $55,100 $540,00 A schedule of expected cash disbursements for accounts payable (purchases on account) for each of the months January to March.
B. Another team member who is preparing the Budgeted Balance Sheet for the business forthe same quarter ending September 30, 2022, has asked you to furnish him with the figuresfor the expected trade receivables and payables to be included in the statement. Is that areasonable request? If yes, what should these amounts be? C. Upon receipt of the budget, the team manager, Dannie Bruce, has now informed you that, inkeeping with industry players, the management of Sallat Household Furnishings haveindicated an industry requirement to maintain a minimum cash balance of $155,000 eachmonth. He has also noted that management is very keen on keeping the gearing ratio of thebusiness as low as possible and would therefore prefer to cushion any gaps internally usingequity financing. Based on the budget prepared, will the business be achieving this desired industry target?Suggest three (3) internal strategies that may be employed by management to improve theorganization’s monthly cash flow and…
(a) The business needs to have a sense of its future cashflows and therefore requires thepreparation of the following: ▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each of the months October to December. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account) for each of the months October to December. ▪ A cash budget, with a total column, for the quarter ending December 31, 2021, showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no financing activities took place.
Tune Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2024 and budgeted balance sheet at April 30, 2024. The March 31, 2024, balance sheet follows: As Tune Printing Supply's controller, you have assembled the following additional information: a. April dividends of $6,000 were declared and paid. b. April capital expenditures of $16,200 budgeted for cash purchase of equipment. c. April depreciation expense, $500. d. Cost of goods sold, 45% of sales. e. Desired ending inventory for April is $22,800. f. April selling and administrative expenses include salaries of $32,000, 30% of which will be paid in cash and the remainder paid next month. g. Additional April selling and administrative expenses also include miscellaneous expenses of 15% of sales, all paid in April. h. April budgeted sales, $86,000, 50% collected in April and 50% in May. i. April cash payments of…
(b) Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter ending September 30, 2022, has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable request? If yes, what should these amounts be?