Cash DisbursementTimber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the monthpreceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following themonth of sale. Additionally, a monthly lease payment of $44,000 is paid for computer services. Sales revenue is forecast as followsMonth Sales RevenueFebruaryMarch$200,000240,000April250,000May290,000June270,000July310,000RequiredPrepare a schedule of cash disbursements for April, May, and June.Do not use a negative sign with your answers.Timber CompanySchedule of Cash DisbursementsApril, May, and JuneAprilMayJuneLumbers purchases $0 $0 $0Wages000Operating expenses000Lease payment000Total disbursements $0 $0 $0

Computation of total cash disbursement by using the following method:Resultant values:Notes:1. The…

Answered: Cash Disbursement Timber Company is in…

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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Hayma Company's sales budget for 2022 in units for the next five months is as follows: January 20,000, February 26,000, March 32,000, April 40,000 and May 42,000. The Company's ending finished goods inventory policy is set for 25% of the following month's sales. January 1 beginning inventory is 2,800 units. How many units will be produced in March? O a. 27,500 O b. 30,000 Oc. 24,700 O d. None of the given answers. O e. 40,500 O f. 34,000 Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total fixed costs are $20,000. Assuming a variable cost ratio of 70%, what is the breakeven point in ($) value? (round figures to the nearest number) on Finis
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February⚫ March Cash Receipts Cash payments $ 521,000 408,000 457,000 $ 467,800 354,800 522,000 Kayak requires a minimum cash balance of $50,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)
Wala Incorporated bases its selling and administrative expense budget on the number of units sold. The variable selling and administrative expense is $3.70 per unit. The budgeted fixed selling and administrative expense is $30,360 per month, which includes depreciation of $3,630. The remainder of the fixed selling and administrative expense represents current cash flows. The sales budget shows 3,100 units are planned to be sold in July. Required: Prepare the selling and administrative expense budget for July.
Foyert Corporation requires a minimum $7,000 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $7,000 is used to repay loans at month-end. The cash balance on October 1 is $7,000, and the company has an outstanding loan of $3,000. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. (please see picture for other info) October November December Cash receipts $ 23,000 $ 17,000 $ 21,000 Cash payments 25,500 16,000 15,000 Prepare a cash budget for October, November, and December.
A merchandising company's sales budget indicates the following sales: January: $25,000; February: $30,000; March: $35,000. The company expects 70% of the sales to be on the account and the remainder to be cash sales. Credit sales are collected in the month following the sale. The total cash collected during March will be?
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: September October November $89,000 $109,000 $146,000 37,000 47,000 31,000 33,000 Sales Manufacturing costs Selling and administrative expenses Capital expenditures 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 $7,000 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 $34,000, marketable…
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts Cash payments $ 525,000 400,000 450,000 $ 475,000 350,000 525,000 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to meet this requirement charge 1% interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $30,000 is used to repay Ibans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Beginning cash balance Add Cash receipts Total cash available Less Cash payments for Interest on loan Total…
Parlex Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2019, the following data are available. . Sales: 20,000 units quarter 1; 22,000 units quarter 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 4%. Fixed costs per quarter: sales salaries $10,000, office salaries $8,000, depreciation $4,200, insurance $1,500, utilities $800, and repairs expense $500. Unit selling price: $20. Instructions: Prepare a selling and administrative expense budget by quarters for the first 6 months of 2019.
Getty Company expects sales for the first three months of next year to be $215,000, $260,000 and $320,000, respectively. Getty expects 30 percent of its sales to be cash and the remainder to be credit sales. The credit sales will be collected as follows: 10 percent in the month of the sale and 90 percent in the following month. Compute a schedule of Getty's cash receipts for the months of February and March. Budgeted cash receipts February March

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