d. Mr. Suncat is concerned about cash flow and has requested that you prepare a Cash Collections Schedule, a Cash Payments Schedule, and a Cash Budget for the first two months of the year using the following information: ● ● ● ● ● Cash collections for Suncat Cake Shop are 60% of sales in the month of sale, 30% collected in the month after the sale, and 10% collected in the second month after the sale. Suncat Cake Shop pays 65% of its purchases of direct materials in the month of sale, and 35% in the month after the purchase. Cake Sales Purchases November $150,000 $10,000 December $145,600 $10,600 January $160,000 $11,400 February $176,000 $12,500 Beginning cash balance was $20,000 and Mr. Suncat's required minimum balance for the Suncat Cake Shop is $15,000. Mr. Suncat estimates direct labor and manufacturing overhead to be $84,000 for January and $92,400 for February. Mr. Suncat would like to include in the Cash Budget in January, the purchase of a new industrial oven at a cost of $75,000.

d. Mr. Suncat is concerned about cash flow and has requested that you prepare a Cash Collections Schedule, a Cash Payments Schedule, and a Cash Budget for the first two months of the year using the following information: ● ● ● ● ● Cash collections for Suncat Cake Shop are 60% of sales in the month of sale, 30% collected in the month after the sale, and 10% collected in the second month after the sale. Suncat Cake Shop pays 65% of its purchases of direct materials in the month of sale, and 35% in the month after the purchase. Cake Sales Purchases November $150,000 $10,000 December $145,600 $10,600 January $160,000 $11,400 February $176,000 $12,500 Beginning cash balance was $20,000 and Mr. Suncat's required minimum balance for the Suncat Cake Shop is $15,000. Mr. Suncat estimates direct labor and manufacturing overhead to be $84,000 for January and $92,400 for February. Mr. Suncat would like to include in the Cash Budget in January, the purchase of a new industrial oven at a cost of $75,000.

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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