Exercise 2-4: Cash Budgetssyr'n Required: Prepare a cash budget and budgeted cash flow statement for Omega Corporation for 20NY from the data below: P 25,000 Cash balance, January 1 Cash balance, December 31 – not lower than 30,000 50,000 30,000 200,000 120,000 50,000 Cash sales Cash purchases Collection of customers' accounts Payment of suppliers' accounts Issuance of company's shares of stock Sale of idle machinery Purchase of new computers Loan amortization Payment of loan interest Payment of operating expenses Payment of income tax In case of cash deficiency, a bank loan may be availed in multiples of P10,000 at 15% interest per annum. 25,000 50,000 40,000 4,000 70,000 15,000

Exercise 2-4: Cash Budgetssyr'n Required: Prepare a cash budget and budgeted cash flow statement for Omega Corporation for 20NY from the data below: P 25,000 Cash balance, January 1 Cash balance, December 31 – not lower than 30,000 50,000 30,000 200,000 120,000 50,000 Cash sales Cash purchases Collection of customers' accounts Payment of suppliers' accounts Issuance of company's shares of stock Sale of idle machinery Purchase of new computers Loan amortization Payment of loan interest Payment of operating expenses Payment of income tax In case of cash deficiency, a bank loan may be availed in multiples of P10,000 at 15% interest per annum. 25,000 50,000 40,000 4,000 70,000 15,000

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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! Required information [The following information applies to the questions displayed below.] Built-Tight is preparing its master budget. Budgeted sales and cash payments follow: July $ 56,000 August $ 72,000 September $ 56,000 Budgeted sales Budgeted cash payments for Direct materials 15,560 3,440 19,600 12,840 2,760 16,200 13,160 2,840 16,600 Direct labor Overhead Sales to customers are 20% cash and 80% on credit. Sales in June were $53,500. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $47,000 in cash and $4,400 in loans payable. A minimum cash balance of $47,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $47,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. Any preliminary cash balance above $47,000 is used to repay loans at month-end. Expenses are paid in the month incurred and consist of sales…
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