Chapter 7 Homework Question 7 of 7 - 12 Current Attempt in Progress Sheridan Company expects to havea cash balance of $55,200 on January 1, 2025. These are the relevant monthly budget data for the firsttwo months of 2025. Collections from customers: January $85,200 and February $175,200. Payments tosuppliers: January $48,000 and February $90,000. Wages: January $36,000 and February $48,000.Wages are paid in the month they are incurred. Administrative expenses: January $25,200 and February $28,800. These costs include depreciation of $1,200 per month. All other costs are paid as incurred. Sellingexpenses: January $18,000 and February $24,000. These costs are exclusive of depreciation. They are paidas incurred. Sales of short-term investments in January are expected to realize $14,400in cash. Sheridanhas a line of credit at a local bank that enables it to borrow up to $30,000. The company wants to maintaina minimum monthly cash balance of $24,000. Prepare a cash budget for January and February. (List itemsthat increase cash balance first.) SHERIDAN COMPANY Cash Budget

The objective of this question is to prepare a cash budget for Sheridan Company for the months of…

Answered: Chapter 7 Homework Question 7 of 7 - 12…

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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From the following information, prepare a monthly cash budget for the three months ending 31st December 2023. Month June July August September October November December Materials Wages 1,800 650 2,000 750 2,400 750 2,250 750 2.300 800 2,500 2,600 900 1,000 The credit terms are as follows: 10% of sales are in cash. 3 months to debtors. 2 months from Creditors. Sales 3,000 3,250 3,500 3,750 4,000 4,250 4,500 The lag in payment for wages is 1/4 month and 1/2 month for overheads. The cash and bank balance on 1st October is expected to be RO 1,500. Other information is given as follows: Admin. Selling, etc 160 160 175 175 200 200 225 Production 225 225 250 300 300 350 350 Preference share dividends @ 5% on RO 50,000 are to be paid on 1st December. Calls on 250 equity shares @RO 2 per share are expected on 1st November. Dividends from investments amounting to RO 250 are expected on 31st December. Income tax (advance) is to be paid in December RO 1,500 Plant and machinery are to be installed…
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Question 1 From the following information prepare a monthly cash budget for the three months ending 31st Dec.2020 Sales Materials Wages Production Admin. Selling, etc Month (RM) (RM) (RM) (RM) (RM) June 6,000 3,600 1,300 450 320 July 6,500 4,000 1,500 450 320 Aug. 7,000 4,800 1,500 500 350 Sep. 7,500 4,500 1,500 600 350 Oct. 8,000 4,600 1,600 600 400 Nov. 8,500 5,000 1,800 700 400 Dec. 9,000 5,200 2,000 700 450 Credit terms Sales 3 months to debtors. 10% of sales are on cash. On an average, 50% of credit sales are paid on the due dates while the other 50% are paid in the month following Creditors for material – 2 months. Lag in payment Wages. 1/4 month, overheads 1/2 month. Other information Plant and Machinery to be installed in Aug. at a cost of RM30,000. It will be paid for by monthly installments of RM1,000 each from 1st Oct.; Preference share dividend @ 6% on RM100,000 are to be paid on 1st Dec. Calls on 500 equity shares @ RM2 per share expected on 1st November; Dividends from…
Problem 1 As treasurer of a manufacturing company, you are preparing a cash budget for September of the next fiscal year. The information for September you have, at your disposal to complete this task is as follows: (а) Next year's sales forecast follows: July August September October $350,000 $240,000 $300,000 $360,000 (b) The sales price is $60. (c) Each month, 20% of the sales are for cash and 80% are on credit. (d) The AR collection pattern for credit sales is: 20% is received in 0-30 days 50% is received in 31-60 days 30% is received in 60-90 days (e) The cash in bank at the beginning of September is $15,400 (f) The per unit production cost data is: Direct material $20 Direct labor 1 direct labor hour per unit; $15 direct labor rate The company monthly beginning FG inventory policy is to maintain a minimum of 25% of the current month's sales. (g) (h) The AP pattern for credit purchases is: 30% is paid in 0-30 days 70% is paid in 31-60 days (i) There is a income tax payment of…
Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $25,600. The budgeted expenses for the next three months are as follows: January February March Salaries $58,900 $71,700 $79,400 Utilities 4,900 5,400 6,400 Other operating expenses 44,800 48,800 53,800 Total $108,600 $125,900 $139,600 Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.
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Management Accounting Course Project – Part 1, B Group The Terranova Company is preparing information to complete its master budget for the quarter ending December 31, 2020. The company intends to make unit sales in the related months as follows: September 5,000 October 9,750 November 11,700 December 14,625 Units are to be sold for $10 each. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following the sale. *Required: 1) Prepare a sales budget for Terranova for the quarter ending December 31, 2020. Show activity by month and in total. (Hint: a quarter = 3 months.) 2) Complete a schedule of expected cash collections for the quarter ending December 31, 2020. Show activity by month and in total.
Schedule of cash payments for a service company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $26,200. The budgeted expenses for the next three months are as follows: January February March Salaries $60,300 $73,400 $81,200 Utilities 5,000 5,500 6,600 Other operating expenses 46,400 50,600 $5,700 Total $111,700 $129,500 $143,500 Other operating expenses include $3,300 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previous year of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Prepare a schedule of cash payments for operations for January, February, and March. EastGate Physical Therapy Inc. Schedule of Cash Payments for…
The Foress Antique Mall budgeted credit sales in the first quarter of 2021 to be as follows: January February March $188,800 200,600 214,000 Credit sales in December 2020 are expected to be $236,000. The company expects to collect 70 percent of a month's sales in the month of sale and 30 percent in the following month. Estimate cash receipts for each month of the first quarter of 2021. Collection of credit sales Collection of December sales $ Collection of January sales Collection of February sales Collection of March sales $ January $ $ February $ $ March Ac Go
Question 8 View Policies Current Attempt in Progress Waterway Industries reported the following information for 2016: rt October November December Budgeted sales $1330000 $1230000 $1510000 . All sales are on credit. . Customer amounts on account are collected 50% in the month of sale and 50% in the following month. How much cash will Waterway receive in November? O $1370000 O $615000 O $1230000 O $1280000 hp Su prt sc delete hom & 7 backspace P H J K

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