Current Attempt in Progress Concord Company expects to have a cash balance of $50,400 on January 1, 2025. Relevant monthly budget data for the first 2 months of 2025 are as follows. Collections from customers: January $95.200, February $168,000. Payments for direct materials: January $56,000, February $84,000. Direct labor: January $33,600, February $50.400. Wages are paid in the month they are incurred. Manufacturing overhead: January $23.520, February $28,000. These costs include depreciation of $1,680 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $16.800, February $22.400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,440 in cash. Concord Company has a line of credit at a local bank that enables it to borrow up to $28,000. The company wants to maintain a minimum monthly cash balance of $22.400. Prepare a cash budget for January and February.

Current Attempt in Progress Concord Company expects to have a cash balance of $50,400 on January 1, 2025. Relevant monthly budget data for the first 2 months of 2025 are as follows. Collections from customers: January $95.200, February $168,000. Payments for direct materials: January $56,000, February $84,000. Direct labor: January $33,600, February $50.400. Wages are paid in the month they are incurred. Manufacturing overhead: January $23.520, February $28,000. These costs include depreciation of $1,680 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: January $16.800, February $22.400. These costs are exclusive of depreciation. They are paid as incurred. Sales of marketable securities in January are expected to realize $13,440 in cash. Concord Company has a line of credit at a local bank that enables it to borrow up to $28,000. The company wants to maintain a minimum monthly cash balance of $22.400. Prepare a cash budget for January and February.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 20E

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Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were sold in January for $10,000 and $4,500 in May. Dividends of $4,500 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the year
Cash budget 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: 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 50,000 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 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
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Echo Amplifiers prepared the following sales budget for the first quarter of 2018: It also has this additional information related to its expenses: Prepare a sales and administrative expense budget for each month in the quarter ending March 31, 2018.
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
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