Alpha Company has budgeted activity for October to reflect a net income of $120,000.All sales are credit sales. Receivables are planned to increase by $35,000, payablesto decrease by $25,000 and Depreciation Expense is $55,000. Use this information todetermine how much cash will increase (decrease) during the month of October.Sunland Corporation has outstanding at December 31, 2020, 45,000 shares of $22 parvalue, cumulative, 6% preferred stock, and 201,500 shares of $8 par value commonstock. All shares were outstanding the entire year. During 2020, Sunland earned totalrevenues of $1,970,000 and incurred total expenses (except income taxes) of$1,130,000. Sunland's income tax rate is 31%. Calculate Sunland's 2020 net income.Using the information below, calculate the net income for the period: Beginning RawMaterials Inventory $25,000, Ending Raw Materials Inventory 30,000, BeginningEnding Work in Process Inventory64,000, Beginning Finished Goods Inventory 80,000, Ending Finished Goods67.000,Cost of Goods Sold for the period 540,000, Sales revenues1,254,000, Operating expenses for the period 232,000Work in Process InventoryInventoryfor the period55,000,

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Answered: Alpha Company has budgeted activity for…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 15P

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Schedule of cash payments for service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: Depreciation, insurance, and property taxes represent 9,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. Seventy percent of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.
Grit Company was formed on May 1, 2023. During May, 2023, the company reported sales on account of $750,000. During June, 2023, Grit Company reportes sales on account of $800,000. Anticipated collections patterns of accounts receivable indicate 40% will be collected in the month of sale, 10% in the next month, and the remainder in the following month. How much will appear on the cash receipts and disbursements budget prepared for June, 2023? $620,000 O $465,000 O $545,000 O $540,000
Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. April May June Credit sales $ 689,000 $ 598,000 $ 751,000 Credit purchases 302,000 282,000 338,000 Cash disbursements Wages, taxes, and expenses 137,000 129,000 179,000 Interest 15,600 15,600 15,600 Equipment purchases 53,500 6,600 248,000 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, complete the following cash budget: (Do not round intermediate calculations and round your answers to the nearest whole number,…
You are provided with the following information taken from Wildhorse Inc.'s March 31, 2025, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 1. 2. 3. 4. 5. Additional information concerning Wildhorse Inc. is as follows. 6. 7. Gross profit is 25% of sales. Actual and budgeted sales data: March (actual) April (budgeted) March April Purchases March $48,200 $19,280 42,420 $61,700 Purchases April $11,600 70,700 20,180 36,010 Sales are both cash and credit. Cash collections expected in April are: (40% of $48,200) (60% of $70,700) 120,800 22,560 154,500 11.680 Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expecte $22,560 28,320 $50,880 Cash operating costs are anticipated to be $12,630 for the month of April. Equipment costing $2,560 will be purchased for cash in April. The company wishes to maintain a minimum cash balance…
Adeline Sdn Bhd has engaged you to prepare its cash budget for July 2021. The following is the information extracted from its management report: May 2021 June 2021 July 2021 Credit sales 500,000 450,000 600,000 Purchases of direct material 300,000 500,000 550,000 Expenses 80,000 Other receipts: Sale of investments 30,000 Other payments: Purchase of van 60,000 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Of direct material purchases, 40% are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items and expenses above are paid in the month incurred. The cash balance on 1 July 2021 is expected to be RM60,000. Adeline wants to maintain a minimum cash balance of RM50,000. Required: How much will Adeline receive in…
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: April May June Credit sales $ 312,000 $ 292,000 $ 352,000 Credit purchases 120,000 143,000 168,000 Cash disbursements Wages, taxes, and expenses 43,200 10,700 62,200 Interest 10,200 10,200 10,200 Equipment purchases 72,000 134,000 0 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $182,000, and credit purchases were $122,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.)
Byanong prepares the cash budget for the month of November 2022. Estimates for the month include the following: Sales P250,000 Gross profit rate 50% Decrease in inventories P 10,000 Increase in accounts payable 15,000 What are the estimated cash disbursements for inventory in November 2022?
Madison Corporation's expected beginning cash balance is $35,000. Cash collections are budgeted at $50,000 and cash disbursements are estimated to be $80,000. The minimum required cash balance is $20,000 and the company can borrow as much as needed in increments of $10,000. Calculate the expected ending cash balance for the month. O $20,000 $5,000 0 $5,000
ABC Company has a cash balance of $40,000 on August 1 and requires a minimum ending cash balance of $28,960. Cash receipts from sales budgeted for August are $210,960. Cash disbursements budgeted for August include inventory purchases, $32,000; other manufacturing expenses, $52,000; operating expenses, $43,000; bond retirements, $65,000; and dividend payments, $30,000. Required: Prepare a cash budget for ABC Company for August. Beginning cash balance Cash Receipts: Total cash available Cash Disbursements: Total cash disbursements Ending cash balance August
(a) Prepare a schedule of expected cash collections for October, November and December and for the quarter in total. (b) Prepare a cash budget for the fourth quarter ended 31 December (show monthly columns and a total for the quarter). (c) The company is considering a dividend payout of $300,000 to shareholders. If the company needs to maintain a minimum cash balance of $100,000 for operating purposes, propose and explain the month for which dividend payment should be planned. please do not provide solution in image format thank you!
Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June: Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000. The company has a 15% open line of credit for $70 000 with their bank. Required: a) Use this information to prepare a cash budget for the first two quarters of the year b) Briefly comment on Picta Company’s expected cashflow position in the first two quarters of the year.
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…

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