Baxter Company's budget committee provides the following information:(Click the icon to view the information.)Read the requirements.Requirement Prepare the schedule of cash receipts from customers for January and February 2024. Assume cash receipts are 80% in the month of thesale and 20% in the month following the sale.Baxter CompanyBudgeted Cash Receipts from CustomersTwo Months Ended February 28, 2024JanuaryCurrent month sales, 80%Prior month sales, 20%Total cash receiptsRequirement 2. Prepare the schedule of cash payments for purchases for January and February 2024. Assume purchases are paid 60% in the month ofpurchase and 40% in the month following the purchase.40% of last month's purchases60% of current month's purchasesTotal cash payments for purchasesBaxter CompanyBudgeted Cash Payments for PurchasesTwo Months Ended February 28, 2024JanuaryRequirement 3. Prepare the schedule of cash payments for selling and administrative expenses for January and February 2024. Assume 40% of theaccrual for Salaries and Commissions Payable is for commissions and 60% is for salaries. The December 31 balance will be paid in January. Salaries andcommissions are paid 30% in the month incurred and 70% in the following month. Rent and income tax expenses are paid as incurred. Insurance expense.is an expiration of the prepaid amount. (Round your answers to the nearest whole number.)Variable expenses:70% of last month's Commission ExpenseFebruaryBaxter CompanyBudgeted Cash Payments for Selling and Administrative ExpensesTwo Months Ended February 28, 2024January30% of current month's Commission ExpenseTotal payments for variable expensesFixed expenses70% of last month's Salaries Expense30% of current month's Salaries ExpenseFebruaryBeginning cash balance.Cash receipts from customersCash availableCash payments:Purchases of merchandise inventorySelling and administrative expensesPayments for income taxesTotal cash paymentsEnding cash balance.Rent expenseTotal payments for fixed expensesTotal payments for S and A expensesRequirement 4. Prepare the cash budget for January and February 2024. Assume no financing took place.Baxter CompanyCash BudgetTwo Months Ended February 28, 2024JanuaryFebruaryFebruary 1->OOOOOOBaxter Company's budget committee provides the following information:(Click the icon to view the information.)Read the requirements.Requirement 1. Prepare the schedule of cash receipts from customers for January and February 2024. Assume cash receipts are 80% insale and 20% in the month following the sale.Baxter CompanyBudgeted Cash Receipts from CustomersTwo Months Ended February 28, 2024JanuaryCurrent month sales, 80%Prior month sales, 20%Total cash receiptsRequirement 2. Prepare the schedule of cash payments for purchases for January and February 2024. Assume purchases are paid 60%purchase and 40% in the month following the purchase.BudTw40% of last month's purcha60% of current month's puTotal cash payments for puRequirement 3. Prepare thaccrual for Salaries and Cocommissions are paid 30%is an expiration of the prepBudgeted CashVariable expenses:70% of last month's Comm30% of current month's CoTotal payments for variablFixed expenses70% of last month's Salari30% of current month's SaRent expenseTotal payments for fixed expensesData tableFebruaryDecember 31, 2023, account balances:CashAccounts ReceivableMerchandise InventoryAccounts PayableSalaries and Commissions PayableBudgeted amounts for 2024:Sales, all on accountPurchases, all on accountCommissions ExpenseSalaries ExpenseRent ExpenseDepreciation ExpenseInsurance ExpenseIncome Tax ExpensePrint$JanuaryDone$ 26,00019,00025,00011,0002,95081,000 $40.6004,0503,5002,4009003002,400- XFebruary82,80041.5004,1403,5002,4009003002,400ary 2024. Assumevill be paid in Januaid as incurred. In

Data table December 31, 2023, account balances: Cash Accounts Receivable Merchandise Inventory Accounts Payable Salaries and Commissions Payable Budgeted amounts for 2024: Sales, all on account Purchases, all on account Commissions Expense Salaries Expense Rent Expense Depreciation Expense Insurance Expense Income Tax Expense I 3,500 2,400 900 300 2,400 $ 26,000 19,000 25,000 11,000 2,950 January February $ 81,000 $82,800 40,600 4,050 41,500 4,140 3,500 2,400 900 300 2,400 X ary 2 vill be aid a

Data table December 31, 2023, account balances: Cash Accounts Receivable Merchandise Inventory Accounts Payable Salaries and Commissions Payable Budgeted amounts for 2024: Sales, all on account Purchases, all on account Commissions Expense Salaries Expense Rent Expense Depreciation Expense Insurance Expense Income Tax Expense I 3,500 2,400 900 300 2,400 $ 26,000 19,000 25,000 11,000 2,950 January February $ 81,000 $82,800 40,600 4,050 41,500 4,140 3,500 2,400 900 300 2,400 X ary 2 vill be aid a

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 18E

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Similar questions

A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent inflation rate. Listed below are selected items from next years budget before the adjustment. After adjusting for the 3 percent inflation rate, what is the companys total budget for the selected items before taxes for next year? a. 858,150 b. 860,412 c. 810,971 d. 858,971
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
What is the amount of budgeted cash payments if purchases are budgeted for $420,000 and the beginning and ending balances of accounts payable are $95,000 and $92,000, respectively?
Relevant data from the operating budget of The Framers are: Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May The beginning cash balance was $50,000 and a required minimum cash balance is $10,000. Prepare a cash budget for the first two quarters of the year.
A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
What is the amount of budgeted cash payments if purchases are budgeted for $190,500 and the beginning and ending balances of accounts payable are $21,000 and $25,000, respectively?
Budgeted selling and administrative expenses for King Tire Co. In P7-2 for the year ended December 31, 2016, were as follows: Required: 1. Prepare a selling and administrative expense budget, in good form, for the year 2016. 2. Using the information above and the budgets prepared in P7-2, prepare a budgeted income statement for the year 2016, assuming an income tax rate of 40%.
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The controller of Big River Inc. wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending May 31, 2024 April 30, 2024, cash balance Dividends were declared on April 15 Cash expenditures to be paid in May for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Big River wishes to maintain a minimum cash balance of $122,000 40,000 81,600 12,200 194,000 120,400 45,800 62,000 "Dividends are payable to shareholders of record on declaration date, 30 days after declaration Required: 1. Prepare a cash budget for the month ended May 31, 2024, indicating how much, if anything. Big River will need to borrow to meet its minimum cash requirement. (Leave no cells blank - be certain to enter "0" wherever required.)
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).
Prepare the cash budget for January and February of Gilmore Company using the following data: February P42,100 January Cash Receipts Cash Disbursements Beginning Cash Balance Ending P46,500 P38,320 P37,220 P5,210 As per computation Required Cash Balance (Minimum) P12,000 P12,000
Calculate cash? Calculate Accounts Payable? Please show formulas and calculations in spreasheet