Galina, Inc. has prepared the following direct materials purchases budget.BudgetedDM PurchasesMonthJuneJulyAugust$68,00074,50076,600SeptemberOctober79,60070,600All purchases are paid for as follows: 10% in the month of purchase, 40% in the following month, and 50% two months after purchase. Calculate the budgeted balance of accounts payable at the end of October.A. $63,540B. $75,100OC. $39,800D. $103,340

Given information, Purchases paid in the month of purchase (r0) = 10% or 0.10Purchases paid in the…

Answered: Galina, Inc. has prepared the following…

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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Meredith Company has budgeted sales for the upcoming months as follows April May June July August September $362,000 374,000 394,000 414,000 402,000 382,000 Assume that 40 percent of the sales are credit sales, and the remainder are cash sales. Credit sales are collected 50 percent i the month of sale, 40 percent in the month following the sale, and 10 percent in the second month following the sale. Required: a. Compute Meredith Company's budgeted cash receipts for June. Note: Do not round intermediate calculations. Cash Receipts
Flounder, Inc. has budgeted sales revenues as follows: Credit sales Cash sales Total sales June July August (a) Past experience indicates that 60% of the credit sales will be collected in the month of sale and the remaining 40% will be collected in the following month. Purchases of inventory are all on account with 50% is paid in the month of purchase and 50% paid in the month following purchase. Budgeted inventory purchases are as follows: Credit sales June July June $139,000 98,000 August Your answer is correct. Other cash disbursements budgeted: (a) selling and administrative expenses of $51,000 each month, (b) dividends of $105,000 will be paid in July, and (c) purchase of equipment in August for $34,000 cash. The company's policy is to maintain a minimum cash balance of $50,000 at the end of each month. The company borrows money from the bank at 6% interest if necessary to maintain the minimum cash balance. Borrowed money is repaid in months when there is an excess cash balance.…
Based on the following data, prepare a cash budget (in proper form with labels) for July and August. Forecast sales May $12,000 June 15,000 July $16,000 August $12,000 Cash sales are 30% of total sales. Credit sales are collected as follows: 60% one month after the sale and 40% 2 months after the sale Accounts payable are paid 100% 2 months after the purchase Expected A/P May $5,000 June $6,000 July $7,000 August $8,000 In addition to purchases, there are utility bills of $1,500 each month Beginning cash for July is $3,800
Estate Corp., has the following information: Month Budgeted Purchases January $27,600 February 29 900 March 29,500 April 29.680 May 26,090 Purchases are paid for in the following manner 10% of the purchase amount in the month of purchasc 50% of the purchase amount in the month after purchase 40% of the purchase amount in the second month after purchase Whal is the expected balance in Accounts Payatile as of March 317 OA. 526,550 B. $14,750 OC. $2,990 D. $38,510
TCB Inc. prepared the following sales budget: October November December January February Month Cash Sales Credit Sales $225,000 $180,000 $330,000 $210,000 $135,000 $190,000 $142,000 $210,000 $168,000 $265,000 Collections on credit sales are 50% in the month of sale, 40% in the month following the sale, and 10% in the second month following the sale. Calculate the budgeted total cash receipts for the December cash budget. $325,000 $197,000 $332,000 $135,000
Annapolis, Inc. has provided you with the following sales data. September October Budgeted unit sales 20,000 30,000 40,000 The company requires that 5% of the next month's sales be on hand at the end of each month. Budgeted production for October would be: 35,000 30,000 31,000 November December 31,500 50,000
Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,400. Budgeted cash receipts total $185,000 and budgeted cash disbursements total $188,800. The desired ending cash balance is $30,400. To attain its desired ending cash balance for January, the company should borrow: Multiple Choice $0 $30,400 $15,800 $45,000
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Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,800. Budgeted cash receipts total $187,000 and budgeted cash disbursements total $189,600. The desired ending cash balance is $30,800. To attain its desired ending cash balance for January, the company should borrow: Multiple Cholce $14,600 $0 $30,800 $47.000
Castor Incorporated is preparing its master budget. Budgeted sales and cash payments for merchandise purchases for the next three months follow. April $ 30,000 June Budgeted Sales Cash payments for merchandise purchases May $ 42,000 $ 26,000 24,200 14,800 13,500 Sales are 80% cash and 20% on credit. Sales in March were $26,000. All credit sales are collected in the month following the sale. The March 31 balance sheet includes balances of $14,000 in cash and $4,000 in loans payable. A minimum cash balance of $14,000 is required. Loans are obtained at the end of any month when the preliminary cash balance is below $12,000. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If a preliminary cash balance above $12,000 at month-end exists, loans are repaid from the excess. Expenses are paid in the month incurred and include sales commissions (10% of sales), shipping (4% of sales), office salaries ($7,000 per month), and rent ($5,000 per…
Mecca 4 Company, a retailer of specialty wall-papers, prepares a monthly master budget. Data for the September master budget are given below: a. The August 31st balance sheet (Actual): cash accounts receivable inventory building and equipment (net) $25,000 133,000 32,813 203,500 e. accounts payable August-Actual September-Projected October-Projected November-Projected capital stock retained earnings b. Actual sales for August and budgeted sales for September, October, and November are given below: $62,016 $190,000 375,000 405,000 310,000 295,372 36,925 C. Sales are 30% for cash and 70% on credit. All credit sales are collected in the month following the sale. There are no bad debts. d. The gross margin percentage is 65% of sales. The desired ending inventory is equal to 25% of the following month's COGS. One fourth of the purchases are paid for in the month of the purchase and the remaining 75% are purchased on account and paid in full the following month. The monthly operating…
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