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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:zannaperez - Last saved by user Y
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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:
F5
Sales
Accessibility: Good to go
November
$150,000
$10,000
Table Design Layout
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.
9
Normal
204
1511
AV
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.
December
$145,600
$10,600
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.
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Suncat Cake Shop
Cash Collections Schedule
For the Quarter Ended March 31, 2021
224
February
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8
January
$160,000
$11,400
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Heading 1
247
Pho
*
March
February
$176,000
$12,500
171
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prt sc
F10
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