Crane Company management wants to maintain a minimum monthly cashbalance of $20,000. At the beginning of April, the cash balance is $20,000,expected cash receipts for April are $196,000, and cash disbursements areexpected to be $204,000. How much cash, if any, must be borrowed tomaintain the desired minimum monthly balance? Amount to be borrowed tomaintain the desired minimum monthly balance $11Crane Company management wants to maintain a minimum monthly cash balance of $20,000. At the beginning of April, the cashbalance is $20,000, expected cash receipts for April are $196,000, and cash disbursements are expected to be $204,000How much cash, if any, must be borrowed to maintain the desired minimum monthly balance?Amount to be borrowed to maintain the desired minimum monthly balance $I I

Cash BudgetCash Budget is prepared to know the cash collections received and cash payments in the…

Answered: Crane Company management wants to…

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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Here is a forecast of sales by National Bromide for the first 4 months of 2019 (figures in thousands of dollars): Month: 1 2 3 4 Cash sales 22 31 25 21 Sales on credit 135 155 125 105 On average, 60% of credit sales are paid for in the current month, 20% in the next month, and the remainder in the month after that. What are the expected cash collections in months 3 and 4? (Enter your answers in whole dollars not in thousands of dollars.)
Boris detergents expects to have a cash balance of P46,000 on January 1, 2020. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January P71,000, February P146,000. 2. Payments to suppliers: January P40,000, February P75,000. 3. Wages: January P30,000, February P40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January P21,000, February P24,000. These costs include depreciation of P1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January P15,000, February P20,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize P12,000 in cash. The Company has a line of credit at a local bank that enables it to borrow up to P25,000. The company wants to maintain a minimum monthly cash balance of P20,000. Prepare a cash budget for January and February.
Suppose that the Sales in December 2019 were 41,498. The sales are expected to grow by 5% in January 2020, by 10% in February 2020, and by 15% in March 2020. After that, the sales are expected to grow by 9%. The company's cash collection is as follows: 24% is collected in the same month, 47% is collected in the next month, and the remainder in the following month. What is the cash collection for July, 2020?
Question 3. Please fill in the blanks the same way as the question
Karim Corporation requires a minimum $8,300 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $8,300 is used to repay loans at month-end. The cash balance on July 1 is $8,700, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for Interest on loan July $ 24,300 28,450 Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance August $ 32,300 30,300 Loan balance - Beginning of month Additional loan (loan…
Trapp Co. was organized on August 1 of the current year. Projected sales for the next three months are as follows: August $100,000 September 185,000 October 225,000 The company expects to sell 40% of its merchandise for cash. Of the sales on account, one third are expected to be collected in the month of the sale and the remainder in the following month. Prepare a schedule indicating cash collections of accounts receivable for August, September, and October. For each month's sales on account, enter the collection months in chronological order. Trapp Co. Schedule of Collections of Accounts Receivable For Three Months Ending October 31, 20xX August September October August sales on account: Collected in August Collected in September September sales on account: Collected in September Collected in October October sales on account: Collected in October Totals
Karim Corporation requires a minimum $8,100 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $8,100 is used to repay loans at month-end. The cash balance on July 1 is $8,500, and the company has no outstanding loans. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments Beginning cash balance Prepare a cash budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) Total cash available July August $ 24,100 $ 32,100 28,150 30,100 Total cash payments Preliminary cash balance Loan activity Ending cash balance September $ 40,100 32,100 KARIM CORPORATION Cash Budget $ July Loan balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance…
Hernandez Company expects credit sales for January to be $58,000. Cash sales are expected to be $38,000. The company expects credit and cash sales to increase 10% for the month of February. Credit sales are collected in the month following the month in which sales are made. Based on this information, the amount of cash collections in February would be:
The beginning cash balance is $20,600. Sales are forecasted at $715,000 of which 70% will be on account. The remainder are cash sales. Sixty percent of credit sales are expected to be collected in the year of sale. Cash expenditures for the year are forecasted at $465,000. Accounts receivable from previous accounting periods totaling $11,000 will be collected in the current year. The company is required to make a $21,500 loan payment and an annual interest payment on the last day of the year. The loan balance as of the beginning of the year is $145,000, and the annual interest rate is 10%. What will be reported as 'cash' on the budgeted balance sheet?
Prepare schedules for cash receipts and cash payments, and determine the ending balances for the relevant balance sheet accounts. E10.30 (LO 4, 5) Service Environmental Landscaping Inc. is preparing its budget for the first quarter of 2022. The next step is to prepare a cash receipts schedule and a cash payments schedule. The following information has been collected: 1. Clients usually pay 50% of their fee in the month when the service is provided, 40% the next month, and 10% in the second month after receiving the service. 2. Actual service revenues for 2021 and expected service revenues for 2022 are as follows: November 2021, $90,000; December 2021, $70,000; January 2022, $110,000; February 2022, $120,000; and March 2022, $130,000. 3. The company pays for purchases of landscaping supplies (direct materials) 60% in the month of purchase and 40% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $14,000; January 2022, $13,000; February…
Part #2: K Company is planning its cash disbursements for the upcoming months. In June, it anticipates $72,000 in Purchases, $130,000 in Payroll, and $40,000 in Loan Payments. In July, it anticipates $79,000 in Purchases, $140,000 in Payroll, and $35,000 in Loan Payments. In August, it anticipates $80,000 in Purchases, $150,000 in Payroll, and $30,000 in Loan Payments. Purchases are usually paid 40 percent in the current month and 60 percent in the following month. Payroll is paid 80 percent in the current month and 20 percent in the following month. Loan Payments are paid in the month due. Prepare a schedule of cash disbursements for the month of July only.
The controller of Optimum wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance Dividends were declared on June 15* $130,000 44, 000 83,600 13,000 198,000 122,400 47,000 70, 000 Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "O" wherever required).

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