Exercise 13-36 (Algo) Estimate Purchases and Cash Disbursements (LO 13-3, 4) Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,900 nozzles in stock. although the latest estimate for August production indicates a requirement for only 17,200 nozzles. Total uses of the nozzle are expected to be 16.900 in September and 17740 in October. Nozzles are purchased at a wholesale price of $19. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 32,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September. Complete this question by entering your answers in the tabs below. Required A Required B Estimate purchases of the nozzle (in units) for August and September. August September Merchandise to be purchased in units < Required A Required B >
Exercise 13-36 (Algo) Estimate Purchases and Cash Disbursements (LO 13-3, 4) Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,900 nozzles in stock. although the latest estimate for August production indicates a requirement for only 17,200 nozzles. Total uses of the nozzle are expected to be 16.900 in September and 17740 in October. Nozzles are purchased at a wholesale price of $19. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 32,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September. Complete this question by entering your answers in the tabs below. Required A Required B Estimate purchases of the nozzle (in units) for August and September. August September Merchandise to be purchased in units < Required A Required B >
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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.
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Transcribed Image Text:Exercise 13-36 (Algo) Estimate Purchases and Cash Disbursements (LO 13-3, 4)
Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle.
The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part.
Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,900 nozzles in stock,
although the latest estimate for August production indicates a requirement for only 17,200 nozzles. Total uses of the nozzle are
expected to be 16.900 in September and 17,740 in October.
Nozzles are purchased at a wholesale price of $19. Eliot pays 25 percent of the purchase price in cash in the month when the parts are
delivered. The remaining 75 percent is paid in the following month. Eliot purchased 32,000 parts in July.
Required:
a. Estimate purchases of the nozzle (in units) for August and September.
b. Estimate the cash disbursements for nozzles in August and September.
Complete this question by entering your answers in the tabs below.
Required A Required B
Estimate purchases of the nozzle (in units) for August and September.
August
September
Merchandise to be purchased in units
Required A
Required B >
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