ABC Company's raw materials purchases for June, July, and August are budgeted at $39,000, $29,000, and $54,000, respectively. Based on past experience, ABC expects that 70% of a month's raw material purchases will be paid in the month of purchase and 30% in the month following the purchase. Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August. Budgeted raw material purchases August cash payments: Current month's purchases Prior month's purchases Total cash payments June July August $ 0

ABC Company's raw materials purchases for June, July, and August are budgeted at $39,000, $29,000, and $54,000, respectively. Based on past experience, ABC expects that 70% of a month's raw material purchases will be paid in the month of purchase and 30% in the month following the purchase. Required: Prepare an analysis of cash disbursements from raw materials purchases for ABC Company for August. Budgeted raw material purchases August cash payments: Current month's purchases Prior month's purchases Total cash payments June July August $ 0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $20,800 for March and $65,700 for April. What are the budgeted cash receipts from sales on account for April?
Schuepfer Incorporated bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,500 units are planned to be sold in March. The variable selling and administrative expense is $4.00 per unit. The budgeted fixed selling and administrative expense is $35,850 per month, which includes depreciation of $5,000 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multiple Choice $49,850 $44,850 $30,850 $14,000
The selling and administrative expense budget of Breckinridge Corporation is based on budgeted unit sales, which are 5,500 units for June. The variable selling and administrative expense is $1.00 per unit. The budgeted fixed selling and administrative expense is $101,200 per month, which includes depreciation of $6,050 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the June selling and administrative expense budget should be: *
McMichael Inc. collects 90% of its sales on account in the month of the sale and 10% in the month following the sale. If sales on account are budgeted to be $495,000 for September and $431,000 for October, what are the budgeted cash receipts from sales on account for October?$
The selling and administrative expense budget of Garney Corporation is based on the number of units sold, which are budgeted to be 4,500 units in October. The variable selling and administrative expense is $6.50 per unit. The budgeted fixed selling and administrative expense is $28,080 per month, which includes depreciation of $11,520. The remainder of the fixed selling and administrative expense represents current cash flows. Required: Prepare the selling and administrative expense budget for October. Note: Do not round your intermediate calculations. Round your final answers to the nearest whole number. Fixed selling and administrative expense Total selling and administrative expense Cash disbursements for selling and administrative expenses October S 0 0
Zisk Company purchases direct materials on credit. Budgeted purchases are April, $85,000; May, $115,000; and June, $125,000. Cash payments for purchases are: 75% in the month of purchase and 25% in the first month after purchase. Purchases for March are $75,000. Prepare a schedule of cash payments for direct materials for April, May, and June. Schedule of Cash Payments for Direct Materials April May Materials purchases Cash payments for: ZISK COMPANY Total cash payments June
Zisk Company purchases direct materials on credit. Budgeted purchases are April, $80,000; May, $110,000; and June, $120,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $70,000. Prepare a schedule of cash payments for direct materials for April, May, and June.
Sally Automotive is preparing the budget for the first quarter and estimates that budgeted cash purchases will be $106,000, $98,400, and $103,600 for January, February, and March, respectively. The company also purchases on credit and historically pays 40% of its credit purchases in the month of purchase, 50% in the month following purchase, and 10% in the second month after the purchase. Credit purchases during this time are expected to be $186,000, $174,800, and $202,000 for January, February, and March, respectively. What amount will be reported for Accounts Payable in the March balance sheet? $290,400 ○ $204,280 $123,480 ○ $138,680
Riff, Inc. is working on its cash budget for June. The budgeted beginning cash balance is $27,000. Budgeted cash receipts total $199,000 and budgeted cash disbursements total $198,000. The desired ending cash balance is $62,000. The excess (deficiency) of cash available over disbursements for June will be:
Capstone Inc. collects 80% of its sales on account in the month of the sale and 20% in the month following the sale. If sales on account are budgeted to be $399,000 for September and $479,000 for October, what are the budgeted cash receipts from sales on account for October?
The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May: Sales 116,000 Manufacturing Costs 49,000 Selling and administrative expenses 34,000 Capital expenditures - June: Sales 143,000 Manufacturing costs 61,000 Selling and administrative expenses 39,000 Capital expenditures - July: Sales 186,000 Manufacturing Costs 67,000 Selling and administrative expenses 41,000 Capital expenditures 45,000 The company expects to sell about 15% of his merchandise for cash of sales account 65% are expected to be collected in the month following the sale and the remainder of the following month (second month following sale). Depreciation, insurance, and property tax expense represent $6,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80%…