Exercise 20-30A (Algo) Merchandising: Schedule of cash paymentsfor merchandise purchases LO P4Hardy Company reports budgeted merchandise purchases below. For those purchases,40% of a month's purchases is paid in the month of purchase, and 60% is paid in the firstmonth after purchase. Prepare the schedule of cash payments for merchandisepurchases for September and October.Budgeted merchandise purchasesAugust195,000September184,000October150,000HARDY COMPANYSchedule of Cash Payments for Merchandise PurchasesMerchandise purchasesCash payments for:Current period purchasesPrior period purchasesSeptemberOctober$184,000 $150,000Total cash payments for merchandise purchasesSA$0 $0

CASH BUDGET Cash Budget is a detailed budget of cash income and cash expenditure incorporating both…

Answered: Exercise 20-30A (Algo) Merchandising:…

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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Question Content Area Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and department stores throughout the United States. Khloe Company provided the following information: The October 31 balance in the cash account is $53,940. All sales are on account. Sales in September were $1,030,000 and in October were $1,260,000. November sales are expected to be $2,175,000. In Khloe’s experience, 70 percent of sales are collected in the month of sale and 28 percent are collected in the month following sale. The remaining credit sales are uncollectible. Khloe purchases all merchandise on account. Purchases in September were $735,000 and in October were $950,000. November purchases are expected to be $2,030,000 as Khloe prepares for the Christmas buying season. Fifteen percent of purchases are paid in the month of purchase, while the remainder is paid in the month following the purchase month. Khloe Company has nine employees who are paid a total of $41,000…
QS 22-27A (Algo) Merchandising: Schedule of cash payments LO P4 Torres Company budgets merchandise purchases of $14,800 in January, $18,600 in February, and $20,200 in March. For those purchases, 50% of purchases are paid in the month of purchase and 50% are paid in the month after the purchase. The company purchased $25,000 of merchandise in December. Prepare a schedule of cash payments for merchandise for the months of January, February, and March. TORRES COMPANY Cash Payments for Merchandise Purchases Merchandise purchases Cash payments for: Current period purchases Prior period purchases Total cash payments for merchandise purchases January February March $ 14,800 $ 18,600 $ 20,200
Budgeting Cash Collections Lowell Consulting, which sells on terms 2/10, n/30, had credit sales for March and April of $90,000 and $75,000, respectively. Analysis of Lowell's operations indicates that the pattern of customers' payments on account is as follows (percentages are of total monthly credit sales) In month of sale in month of following sale Uncollectible accounts, returns, and allowances Receiving Discount Beyond Discount Period Totals 20% 60% 20% 35% 5% 100% 40% 15% Determine the estimated cash collected on customers' accounts in April.
Exercise 14-7A (Algo) Preparing an inventory purchases budget LO 14-3 Rooney Company sells lamps and other lighting fotures. The purchasing department manager prepared the following inventory purchases budget Rooney's policy is to maintain an ending inventory balance equal to 20 percent of the following month's cost of goods sold. April's budgeted cost of goods sold is $82,000 Required a. Complete the inventory purchases budget by filling in the missing amounts b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter Complete this question by entering your answers in the tabs below. Red A Rea B and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March 550,000 $ 62.000 $ 60.000 Budgeted cost of goods sold
Accounting Consider the following third-quarter budget data for TAP & Brothers: TAP & Brothers Third-Quarter Budget Data July August September Credit Sales 256,167 262,962 282,872 Credit Purchases 97,465 111,565 137,292 Wages, Taxes, and Expenses 26,506 31,621 33,707 Interest 7,239 7,773 8,091 Equipment Purchases 54,832 61,271 0 The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be collected in the month of the sale, and the remaining 66% will be collected in the following month. Credit purchases will be paid in the month following the purchase. In June, credit sales were $138,282, and credit purchases were $102,770 July’s beginning cash is $184,797 If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e., end of…
3. Question Content Area Cash Budget Khloe Company imports gift items from overseas and sells them to gift shops and department stores throughout the United States. Khloe Company provided the following information: The October 31 balance in the cash account is $54,115. All sales are on account. Sales in September were $980,000 and in October were $1,260,000. November sales are expected to be $2,175,000. In Khloe’s experience, 70 percent of sales are collected in the month of sale and 26 percent are collected in the month following sale. The remaining credit sales are uncollectible. Khloe purchases all merchandise on account. Purchases in September were $730,000 and in October were $950,000. November purchases are expected to be $2,030,000 as Khloe prepares for the Christmas buying season. Fifteen percent of purchases are paid in the month of purchase, while the remainder is paid in the month following the purchase month. Khloe Company has nine employees who are paid a total of…
Exercise 14-7A (Algo) Preparing an inventory purchases budget LO 14-3 Perez Company selts lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget Perez's policy is to maintain an ending inventory balance equal to 15 percent of the following month's cost of goods sold. Aprif's budgeted cost of goods sold is $85,000 Required a. Complete the inventory purchases budget by fillng in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quarter Complete this question by entering your answers in the tabs belovw. Reg A Reg and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget January February March Butgeted cost of goods sold 61,000 s 67,000 57,000 $ 9,150 Inventory needed…
Management Accounting Course Project – Part 1, B Group The Terranova Company is preparing information to complete its master budget for the quarter ending December 31, 2020. The company intends to make unit sales in the related months as follows: September 5,000 October 9,750 November 11,700 December 14,625 Units are to be sold for $10 each. Sales are 60% for cash and 40% on credit. Credit sales are collected in the month following the sale. *Required: 1) Prepare a sales budget for Terranova for the quarter ending December 31, 2020. Show activity by month and in total. (Hint: a quarter = 3 months.) 2) Complete a schedule of expected cash collections for the quarter ending December 31, 2020. Show activity by month and in total.
3.3 Tutorial Questions 3.3.1 Cash Budget 1. A firm reported actual sales of RM65,000 in the month of June and RM70,000 in July. The sales forecasts indicate that sales are expected to be RM85,000, RM92,000 and RM95,750 for the months of August, September and October, respectively. Sales are 60% cash and 40% credit and credit sales are collected evenly over the following 2 month. No other cash receipts were received. What are the firm's expected cash receipts for the month August, September and October? . compile a cash disbursement
PROBLEM 7-I CASH BUDGET The Francine Company, a merchandising firm, has planned the following sales for the next four months: March April May June Total budgeted sales... 50,000 70,000 90,000 60,000 Sales are made 40% for cash and 60% on account. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale 70% First month following month of sale 20% Second month following month of sale 8% Uncollectible 2% The company requires a minimum cash balance of $4,000 to start a month. Required: B. Assume the following budgeted data for June: Purchases Р52,000 Selling and administrative expenses..... 10,000 Depreciation ..... 8,000 Equipment purchases... 15,000 Cash balance, beginning of June.. 6,000 Using this data, along with your answer to part (1) above, prepare a cash budget in good form for June. Clearly show any borrowing needed during the month. The company can borrow in any dollar amount, but will not pay any…
eBook Cash Budget The controller of Shoe Mart Inc. asks you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: January February March Sales $148,000 $179,000 $238,000 Manufacturing costs 62,000 77,000 86,000 Selling and administrative expenses 43,000 48,000 52,000 Capital expenditures _ _ 57,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 65% are expected to be collected in full in the month following the sale and the remainder the following month. Depreciation, insurance, and property tax expense represent $7,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in June, and the annual property taxes are paid in October. Of the remainder of the manufacturing costs, 85% are expected to be paid in the month in which they are incurred and the balance in the following month. All sales and administrative…
Problem 10-49: Budgeting for a Merchandising Firm Background Budgeted sales: December $250,000 January $225,000 Collections of A/R: Collected in month of sale 50.00% Collected following month 48.00% Est B/D expense 2.00% Discount for early payment 1.00% Gross margin % 30% Target End Inv, as % of following month's sales 80.00% Merchandise payments: % paid in month following month of purchase 100.00% Other operating expenses (cash) = $25,000 Annual depreciation expense = $216,000 Goldberg Company's statement of financial position at the close of business on November 30th follows: GOLDBERG COMPANY Statement of Financial Position November 30, 2016 Assets Cash…

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