sa Bonita Corporation is projecting a cash balance of $34,800 in its December 31, 2021, balance sheet. Bonita's schedule of expectedcollections from customers for the first quarter of 2022 shows total collections of $214,600. The schedule of expected payments fordirect materials for the first quarter of 2022 shows total payments of $49,880. Other information gathered for the first quarter of2022 is sale of equipment $3,480; direct labor $81,200, manufacturing overhead $40,600, selling and administrative expenses$52,200; and purchase of securities $16,240. Bonita wants to maintain a balance of at least $29,000 cash at the end of each quarter.Prepare a cash budget for the first quarter.BONITA CORPORATIONCash BudgetBeginning Cash BalanceAddReceipts Beginning Cash BalanceAddReceipts

Step 1: The cash budget is prepared to know the cash requirements during the period, it shows the…

Answered: Bonita Corporation is projecting a cash…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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Sheridan Corporation is projecting a cash balance of $32,100 in its December 31, 2019, balance sheet. Sheridan’s schedule of expected collections from customers for the first quarter of 2020 shows total collections of $197,950. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $46,010. Other information gathered for the first quarter of 2020 is sale of equipment $3,210; direct labor $74,900, manufacturing overhead $37,450, selling and administrative expenses $48,150; and purchase of securities $14,980. Sheridan wants to maintain a balance of at least $26,750 cash at the end of each quarter.Prepare a cash budget for the first quarter.
Wildhorse Corporation is projecting a cash balance $29,000 in its December 31, 2021. Balance sheet, Wildhorse schedule of expected collections from customers for the first quarter of 2022 shows total collections of $180,000. The schedule of expected payments for direct materials for the first quarter of 2022 shows total payment of $46,000.Other information gathered for the first quarter of 2022 is as follows: sale of equipment $4000: direct labour $67,000, manufacturing overhead $35,000: selling and administrative expenses $45,000: and purchase of securities $13,000. Wildhorse wants to maintain a balance of at least $24,000 cash at the end of each quarter. Prepare a cash budget for the first quarter.
Crane Company expects to have a cash balance of $36,000 on January 1,2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $68,000, February $120,000.Payments for direct materials: January $40,000, February $60,000.Direct labor: January $24,000, February $36,000. Wages are paid in the month they are incurred.Manufacturing overhead: January $16,800, February $20,000. These costs include depreciation of $1,200 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $12,000, February $16,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $9,600 in cash. Crane Company has a line of credit at a local bank that enables it to borrow up to $20,000. The company wants to maintain a minimum monthly cash balance of $16,000. Prepare a cash budget for January and February. ReceiptsCollections from…
Bonita Company expects to have a cash balance of $52,200 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $98,600, February $174,000. Payments for direct materials: January $58,000, February $87,000. Direct labor: January $34,800, February $52,200. Wages are paid in the month they are incurred. Manufacturing overhead: January $24,360, February $29,000. These costs include depreciation of $1,740 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $17,400, February $23,200. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,920 in cash. Bonita Company has a line of credit at a local bank that enables it to borrow up to $29,000. The company wants to maintain a minimum monthly cash balance of $23,200.Prepare a cash budget for January and February.…
Coronado Company expects to have a cash balance of $41,400 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $78,200, February $138,000. Payments for direct materials: January $46,000, February $69.000. Direct labor: January $27,600, February $41,400, Wages are paid in the month they are incurred. Manufacturing overhead: January $19,320, February $23,000. These costs include depreciation of $1,380 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $13,800, February $18,400. These costs are exclusive of depreciation. They are paid as Incurred. Sales of marketable securities in January are expected to realize $11.040 in cash, Coronado Company has a line of credit at a local bank that enables it to borrow up to $23,000. The company wants to maintain a minimum monthly cash balance of $18,400. Prepare a cash budget for January and February. CORONADO COMPANY…
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Bramble Company expects to have a cash balance of $43,200 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $81,600, February $144,000. Payments for direct materials: January $48,000, February $72,000. Direct labor: January $28,800, February $43,200. Wages are paid in the month they are incurred. Manufacturing overhead: January $20,160, February $24,000. These costs include depreciation of $1,440 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $14,400, February $19,200. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $11.520 in cash. Bramble Company has a line of credit at a local bank that enables it to borrow up to $24,000. The company wants to maintain a minimum monthly cash balance of $19,200. Prepare a cash budget for January and February.
Swifty Corporation expects to purchase $140,000 of materials in July.... Please provide correct solution for this general accounting question
Lily Company expects to have a cash balance of $49,500 on January 1, 2022. Relevant monthly budget data for the first 2 months of 2022 are as follows. Collections from customers: January $93,500, February $165,000. Payments for direct materials: January $55,000, February $82,500. Direct labor: January $33,000, February $49,500. Wages are paid in the month they are incurred. Manufacturing overhead: January $23,100, February $27,500. These costs include depreciation of $1,650 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $16,500, February $22,000. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,200 in cash. Lily Company has a line of credit at a local bank that enables it to borrow up to $27,500. The company wants to maintain a minimum monthly cash balance of $22,000. Prepare a cash budget for January and February. LILY COMPANY Cash Budget…
Suppose that the Sales in December 2019 were 64,566. The sales are expected to grow by 6% in January 2020, by 17% in February 2020, and by 10% in March 2020. After that, the sales are expected to grow by 14%. The purchases are 10% of sales. The purchases will be paid in the same month. The general administrative expenses are $13,032 and will be paid in the same month. The depreciation expense is $6,611 per month. The interest expenses are $8,778 per quarter and will be paid in March, June, September, and December. What is the cash outflow for June, 2020?
In 2019, a company reported sales revenue of Landon Manufacturing Company produced 2,000 units of inventory in March 2023. It expects to produce an additional 18,000 units during the remaining nine months of the year, resulting in an estimated total production of 20,000 units for 2023. The direct materials and direct labor costs per unit are $72 and $60, respectively. The company expects to incur the following manufacturing overhead costs for the 2023 accounting period: ⚫ Production supplies: $12,000 • Supervisor salary: $200,000 Depreciation on equipment: $80,000 ⚫ Utilities: $25,000 • Rental fee on manufacturing facilities: $55,000 a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is the number of units. b. Determine the total cost of the 2,000 units produced in March.
In 2019, a company reported sales revenue of Landon Manufacturing Company produced 2,000 units of inventory in March 2023. It expects to produce an additional 18,000 units during the remaining nine months of the year, resulting in an estimated total production of 20,000 units for 2023. The direct materials and direct labor costs per unit are $72 and $60, respectively. The company expects to incur the following manufacturing overhead costs for the 2023 accounting period: ⚫ Production supplies: $12,000 • Supervisor salary: $200,000 Depreciation on equipment: $80,000 ⚫ Utilities: $25,000 . Rental fee on manufacturing facilities: $55,000 a. Combine the individual overhead costs into a cost pool and calculate a predetermined overhead rate assuming the cost driver is the number of units. b. Determine the total cost of the 2,000 units produced in March.

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