ConnectEXERCISE 9–1 Prepare a Flexible Budget LO9-1aset Sound Divers is a company that provides diving services such as underwater ship repairs toMcGrawHillducationnts in the Puget Sound area. The company's planning budget for May appears below:Puget Sound DiversPlanning BudgetFor the Month Ended May 31Budgeted diving-hours (q)100Revenue ($365.00q) ....$36,500Expenses:Wages and salaries ($8,000 + $125.00q)Supplies ($3.00q) .....Equipment rental ($1,800 + $32.00q) .....Insurance ($3,400)Miscellaneous ($630 + $1.80q) ....20,5003005,0003,40081030,010Total expense$ 6,490Net operating income ...During May, the company's actual activity was 105 diving-hours.Required:Using Exhibit 9–5 as your guide, prepare a flexible budget for May.

Flexible budget: Flexible budgets are prepared for various levels of activities or outputs. This…

Answered: Connect EXERCISE 9–1 Prepare a Flexible…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Dashboard Grammarly Saved Help O Homework January budgeted selling and administrative expenses for the retail shoe store that Craig Shea plans to open on January 1, year 1, are as follows: sales commissions, $23,000; rent, $15,000; utilities, $5,900; depreciation, $3,900; and miscellaneous, $1,300. Utilities are paid in the month after they are incurred. Other expenses are expected to be paid in cash in the month in which they are incurred. Required a. Determine the amount of budgeted cash payments for January selling and administrative expenses. b. Determine the amount of utilities payable the store will report on the January 31 pro forma balance sheet. c. Determine the amount of depreciation expense the store will report on the income statement for year 1, assuming that monthly depreciation remains the same for the entire year. a. Budgeted cash payments b. Utilities payable Depreciation expense C. 田

Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 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 $527,000 407,500 472,000 $473,800 354,300 532,000 Kayak requires a minimum cash balance of $40,000 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 $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 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.). KAYAK COMPANY Beginning cash…
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EXERCISE 9-9 Planning Budget LO9-1 Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost Cost per per Month Car Washed $0.80 $0.15 $0.20 $0.30 Cleaning supplies ... Electricity $1,200 Maintenance Wages and salaries Depreciation Rent Administrative expenses. $5,000 $6,000 $8,000 $4,000 $0.10 For example, electricity costs should be $1,200 per month plus $0.15 per car washed. The company expects to wash 9,000 cars in August and to collect an average of $4.90 per car washed. Required: Using Exhibit 9-2 as your guide, prepare the company's planning budget for August.
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Exercise 9-1 (Algo) Prepare a Flexible Budget [LO9-1] Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company's planning budget for May appears below: Puget Sound Divers Planning Budget For the Month Ended May 31 400 $ 176,000 Budgeted diving-hours (q) Revenue ($440.004) Expenses: Wages and salaries ($11,600+ $120.00q) Supplies ($4.000) Equipment rental ($2,300 + $25.009) Insurance ($4,000) Miscellaneous ($540 + $1.42q) Total expense Net operating income 59,600 1,600 12,300 4,000 1,108 78,608 $ 97,392 During May, the company's actual activity was 390 diving-hours. Required: Prepare a flexible budget for May. (Round your answers to the nearest whole dollar.) Puget Sound Divers Flexible Budget For the Month Ended May 31 Revenue Expenses: Wages and salaries Supplies Equipment rental Insurance Miscellaneous Total expense Net operating income
Exercise 20-19 (Algo) Schedule of cash payments LO P2 Zisk Company purchases direct materials on credit. Budgeted purchases are April, $89,000; May, $119,000; and June, $129,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $79,000. Prepare a schedule of cash payments for direct materials for April, May, and June. ZISK COMPANY Schedule of Cash Payments for Direct Materials Materials purchases Cash payments for: Total cash payments April May June
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10:54 AM O D A VOLTE l week%203 fx Describe the 5 types of A Sescribe the 5 types of budgets listed for these Wk 3 Financial Exercises: Problem Set 2, Part 1. In your descriptions, include the budget's objective, how the budget assists an organization in managing its financial activities, and what types of data need to be included in that specific budget. Type of Budget 1 Cescription Insert cash flow de Insert operating de Insert sales descrip Insert static descrip Insert financial des 3 Cash Flow Operating Sales Static Financial 4 7 8 9. 10 11 12 13 14 15 16 t2 Wk 3- Set 2, Part 1 + >

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