Avril Company makes collections on sales according to the following schedule: 60% in the month of sale. 37% In the month following the sale. 3% in the second month following the sale. The following sales have been are expected: Expected Sales January $160,000 February $170,000 March $160,000 Budgeted cash collections In March should be budgeted to be: A. $163,700 B. $158,900 C. $160,480 D. $160,000
Q: Hello tutor please hepl me this question ❓
A: Step 1: Define Shareholders EquityShareholders' equity is the owner's claim on the assets of the…
Q: I want to correct answer general accounting
A: Step 1:Computation of the supervisory salaries (fixed): At 6,000 machine hours, Supervisory salaries…
Q: Targo company manufacturers a single product and has a jit policy that ending inventory
A: Step 1: Define Cash Disbursements BudgetThe cash disbursement budget is a component of the master…
Q: Give me solution
A: Explanation of Total Production Cost:Total Production Cost refers to the sum of all expenses…
Q: Value of missing units?
A: Explanation of Inventory Cards: Inventory cards are detailed records that track the movement of…
Q: answer
A: Key Definitions:Explanation of Traditional Accounting Frameworks: These are established accounting…
Q: A firm has a debt to equity ratio need solve this question ❓
A: Step 1: Given Value for Calculation Debt to Equity Ratio = 0.25 Step 2: Calculation of Debt Ratio…
Q: Get Answer Of this One with Method of Accounting
A: Step 1: Define Accounts Receivable Turnover:Accountants and analysts perform various techniques to…
Q: tutor please give true answer No AI use Strictly
A: Step 1: Definition:The gross margin is the difference between sales revenue and the cost of goods…
Q: Please give me answer general accounting
A: Explanation: In the given case, we are provided with the overall cost of capital of 11% or 0.11.…
Q: If the contribution margin ratio solve this question
A: Step 1: Define Operating ProfitThe operating profit shows the remaining profit earned after…
Q: Newell company wishes to earn a pre tax income please solve this question
A: Step 1: Define Pre-tax IncomePre-tax income is defined as the earnings of a business entity on which…
Q: which option is correct?
A: Explanation of Real-Time Accounting:Real-time accounting refers to the continuous updating and…
Q: Financial Account information is presented below: Operating expenses $ 59,000 Sales returns and…
A: Step 1: Definition of Gross Profit:Gross Profit represents the profit a company makes after…
Q: Olam International Limited sources and processes agricultural products including edible nuts and…
A: To address the question, we need to calculate the annual gross profit for the Peanut Division under…
Q: Provide correct answer accounting question
A: Step 1: Define Variance AnalysisThe concept of variance analysis is used to make a comparison…
Q: What characterizes dynamic cost analysis in modern accounting?
A: Explanation of Dynamic Cost Analysis: This is a modern accounting approach that provides real-time…
Q: The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of…
A: o prepare an unadjusted trial balance as of January 31, 2024, let's follow these steps:1. Start with…
Q: The merchandise inventory was destroyed by fire this question solution
A: Step 1: Define Cost of Goods SoldIn business and finance, the cost of goods sold is considered the…
Q: Fill in the blank
A: Key ConceptsPredetermined Overhead RateThis rate is calculated at the beginning of the year based on…
Q: Hi expert please give me answer general accounting
A: Step 1: Define Gross ProfitThe gross profit for a manufacturing firm is calculated by deducting the…
Q: On nov.1 carter company signed a 120- day this question solution general accounting
A: Step 1: Define LiabilitiesIncluded on the balance sheet is current and long-term liabilities such as…
Q: Choose the right one
A: Explanation of Bad Debt Expense: Bad debt expense is a cost that a business incurs when accounts…
Q: Provide solution for these financial accounting question
A: Given:Debt to equity ratio (D/E) = 0.5Debt (D) = $20,000Interest rate on debt (Rd) = 5%Expected…
Q: Jones engineering has $60000 in assets. This question solution
A: Step 1: Define Accounting EquationAn accounting equation emphasizes that the left-hand side of a…
Q: Hi expert please give me answer general accounting
A: Explanation: In the given case, we are required to calculate the Price-Earning ratio (PE ratio) of…
Q: Need Accounting Answer with correct answer
A: Step 1: Use the formula• Formula: Contribution Margin per Unit = Sales Price per Unit − Variable…
Q: At the beginning. ..please provide correct answer
A: Step 1: Define Predetermined Overhead RateA predetermined overhead rate is multiplied by the…
Q: I need questions answer accounting
A: 1. Estimate the Cost of the Credit LineInterest Cost:The interest cost is based on the amount…
Q: Financial Accounting What event triggers start of capitalizing interest the construction projects?…
A: Explanation of Interest Capitalization: Interest capitalization is the addition of interest costs to…
Q: Need help with this question solution general accounting
A: Step 1: Define Operating LeverageThe operating leverage is the ratio of the contribution margin and…
Q: General administration and top management costs would MOST likely be classified as a Select one:…
A: In cost accounting, costs are often categorized based on their behavior, traceability,…
Q: Last year,rec room sports reported earnings per share this question solution
A: Detailed Explanation:The P/E ratio essentially reflects how much investors are willing to pay for…
Q: Question
A: Explanation of Return on Equity (ROE): ROE is a key financial metric that measures how effectively a…
Q: None
A: Revenue = $200,000Withdrawals = $40,000Salary Expense = $30,000Utility Expense = $1,000 Net Income =…
Q: Hi expart give correct answer the general accounting question
A: Step 1: Define Straight-line Method of DepreciationDepreciation expense is charged over time for…
Q: ACME Company purchases for resale 1,000 widgets for $64 each. At year- end, the replacement cost is…
A: Step 1: Determine the cost per widgetStep 2: Determine the replacement cost per widgetStep 3:…
Q: New visions inc is looking to achieve a net income please solve this question
A: Hello student! To calculate the required level of sales in units to achieve a net income of 15%, let…
Q: Quinn company has a debt...financial question
A: Part a: Equity Multiplier• Step 1: Identify the Formula• Step 2: Substitute the given value of…
Q: Don't want wrong answer
A: Explanation of Responsibility Accounting: Responsibility accounting is a system in which managers…
Q: Liman corporation has a single...Accounting questions
A: Step 1: Define Desired ProfitTo calculate sales required to make the desired profit, the sum of…
Q: Nicholas earned ....accounting question
A: Step 1: Calculate the tax on the interest• Tax on interest = Interest rate × Tax rateStep 2:…
Q: Please provide correct answer
A: Step 1: Understand the firm's financial positionFirm's value if it continues to operate:The firm's…
Q: At the high level of activity in November solution this question?
A: Step 1: Define High-Low Method AccountingMethods such as regression method, high-low method etc. are…
Q: What would party expenses be under in general ledg
A: The general ledger is the primary accounting tool used by businesses to keep track of all financial…
Q: Prepare entries for various credit card and notes receivable transactions. P8.6 (LO 1, 2, 3, 4)…
A: First, we need to journalize the transactions that occurred in July. Here are the entries: July 5:…
Q: Absorption and variable costing Bird's Eye View manufactures satellite dishes used in residential…
A: Fixed Selling & Administrative Expense: \text{Fixed S&A} = 180,000Income Before…
Q: Please answer all parts of the question and please confirm if the below is correctly answered.
A: The problem requires the determination of the payback period and NPV.NPV and payback period method…
Q: Consider the following data....accounting questions
A: Given Data:Free Cash Flow in Year 6 (FCF6): 5.8 millionContinuation Value of Equity: 120…
Q: ?
A: Specialized industry accounting practices mean that certain industries have unique accounting…
Need help with this general accounting question not use ai
Step by step
Solved in 2 steps
- Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase and 60% in the month following the purchase. If purchases are budgeted to be 40,000 for August and 36,000 for September, what are the budgeted cash payments for purchases on account for September?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: 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 50,000 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 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Cash budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent 12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. 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 June 1 include cash of 42,000, marketable securities of 25,000, and accounts receivable of 198,000 (150,000 from May sales and 48,000 from April sales). Sales on account in April and May were 120,000 and 150,000, respectively. Current liabilities as of June 1 include 13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 24,000 will be made in July. Mercury Shoes regular quarterly dividend of 15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of 40,000. Instructions Prepare a monthly cash budget and supporting schedules for June, July, and August. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
- Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information: a. Of all sales, 40% are cash sales. b. Of credit sales, 45% are collected within the month of sale. Half of the credit sales collected within the month receive a 2% cash discount (for accounts paid within 10 days). Thirty percent of credit sales are collected in the following month; remaining credit sales are collected the month thereafter. There are virtually no bad debts. c. Sales for the second two quarters of the year follow. (Note: The first 3 months are actual sales, and the last 3 months are estimated sales.) d. The company sells all that it produces each month. The cost of raw materials equals 26% of each sales dollar. The company requires a monthly ending inventory of raw materials equal to the coming months production requirements. Of raw materials purchases, 50% is paid for in the month of purchase. The remaining 50% is paid for in the following month. e. Wages total 105,000 each month and are paid in the month incurred. f. Budgeted monthly operating expenses total 376,000, of which 45,000 is depreciation and 6,000 is expiration of prepaid insurance (the annual premium of 72,000 is paid on January 1). g. Dividends of 130,000, declared on June 30, will be paid on July 15. h. Old equipment will be sold for 25,200 on July 4. i. On July 13, new equipment will be purchased for 173,000. j. The company maintains a minimum cash balance of 20,000. k. The cash balance on July 1 is 27,000. Required: Prepare a cash budget for July. Give a supporting schedule that details the cash collections from sales.The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
- Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were sold in January for $10,000 and $4,500 in May. Dividends of $4,500 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the yearCash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
- Pasadena Candle Inc. projected sales of 800,000 candles for January. The estimated January 1 inventory is 35,000 units, and the desired January 31 inventory is 20,000 units. What is the budgeted production (in units) for January?CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2019 and 2020: Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2019. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal, and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.