Exercise 20-21 (Algo) Cash budget LO P2Foyert Corporation requires a minimum $7,100 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid atthe end of each month). Any preliminary cash balance above $7,100 is used to repay loans at month-end. The cash balance on October1 is $7,100, and the company has an outstanding loan of $3,100. Budgeted cash receipts (other than for loans received) and budgetedcash payments (other than for loan or interest payments) follow.Cash receiptsCash paymentsOctober$ 23,10025,650November$ 17,10016,100December$ 21,10014,900Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should beIndicated with minus sign. Round your final answers to the nearest whole dollar.)Beginning cash balanceTotal cash availableTotal cash paymentsPreliminary cash balanceLoan activityEnding cash balanceLoan balance-Beginning of monthAdditional loan (loan repayment)Loan balance - End of monthFOYERT CORPORATIONCash BudgetOctoberNovemberDecember$7.100Loan balance$3,100

The cash budget records the cash receipts and cash disbursements during the period. The cash budget…

Answered: Exercise 20-21 (Algo) Cash budget LO P2…

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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Exercise 13-35 (Algo) Estimate Cash Collections (LO 13-5) Minot Corporation is preparing its cash budget for August. The following information is available concerning its accounts receivable: Estimated credit sales for August $ 130,000 Actual credit sales for July $ 99,000 Estimated collections in August for credit sales in August 25 % Estimated collections in August for credit sales in July 70 % Estimated collections in August for credit sales prior to July $ 11,000 Estimated write-offs in August for uncollectible credit sales $ 5,000 Estimated provision for bad debts in August for credit sales in August $ 4,800 Required: What is the estimated amount of cash receipts from accounts receivable collections in August?
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Exercise 20-19 (Algo) Schedule of cash payments LO P2 Zisk Company purchases direct materials on credit. Budgeted purchases are April, $89,000; May, $119,000; and June, $129,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $79,000. Prepare a schedule of cash payments for direct materials for April, May, and June. ZISK COMPANY Schedule of Cash Payments for Direct Materials Materials purchases Cash payments for: Total cash payments April May June
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8-19
Problem 6 Tomtom store seeks your assistance to develop cash and other budget information for May, June, and July 2009. On April 30, 2009, the company had cash balance of Php5,500. The budget is based on the following assumptions: A. Sales 1. Each month's sales are billed on the last day of the month 2. Customers are allowed 3% discount if payment is made within 10 days after the billing date. Accounts receivable are booked gross. 3. Sixty percent of the billings are collected within the discount period, 25% are collected by the end of the month where discount period is allowed, 9% are collected by the end of the end second month, and 6% prove uncollectible. B. Purchases 1. 54% of all purchases of materials and selling, general and administrative expenses are paid at the month purchased and the remainder in the following month. 2. Each month's unit of ending inventory is equal to 130% of the month's units of sales. 3. The cost of each unit of inventory is P20. 4. Selling, general and…
Question 2 A. The Rilex and Chill Coffee Shop has requested a cash budget for August. After examining the records of the company, you find the following: 1. Cash balance on 1 August is RM43,280. 2. Actual sales for June and July are as follows: June RM Cash sales Credit sales Total sales 10,200 26,100 36,300 July RM 14,700 33,900 48,600 3. Credit sales are collected over three months: 30% in the month of sales, 40% in the second month, and 25% in the third month. The customers who paid in the month of sales are qualified for 3% discounts on the amount owed. While the sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible. 4. Inventory purchases average 80% of a month's total sales. Of those purchases, 60% are paid for in the month of purchase. The remaining 40% is paid for in the following month. 5. Salaries and wages total RM13,800 per month. 6. The company received interest…
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11 Sedita Incorporated is working on its cash budget for July. The budgeted beginning cash balance is $22,000. Budgeted cash receipts total $194,000 and budgeted cash disbursements total $193,000. The desired ending cash balance is $38,000. The excess (deficiency) of cash available over disbursements for July will be Multiple Choice $23.000 $1,000 $21,000 $216.000

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