goods sold co 2. Prepare a combined cash budget similar to exhibits in the chapter. If no financing P9-61A Cash budgets (Learning Eli's Restaurant Supply is preparing its cash budgets for the of the and cash disbursements: are as follows: Budgeted Sales Revenue $62,000 January $70,000 February b. Actual purchases of direct materials in December were $24,500. The companye purchases of direct materials in January are budgeted to be $24,000 and $26.000 February. All purchases are paid 40% in the month of purchase and 60% the follo month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $8,000 in December. Budgeted salaries in Janu- ary are $9,000 and February budgeted salaries are $10,500. Sales commissions each month are 8% of that month's sales. d. Rent expense is $3,500 per month. e. Depreciation is $2,100 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $12,500. g. The cash balance at the end of the prior year was $22,000. Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments purchases, and (c) budgeted cash payments for operating expenses. Show totas each month and totals for January and February combined. tivity takes place, what is the budgeted cash balance on February 28? 32A Combined cash budgot Ohiou
goods sold co 2. Prepare a combined cash budget similar to exhibits in the chapter. If no financing P9-61A Cash budgets (Learning Eli's Restaurant Supply is preparing its cash budgets for the of the and cash disbursements: are as follows: Budgeted Sales Revenue $62,000 January $70,000 February b. Actual purchases of direct materials in December were $24,500. The companye purchases of direct materials in January are budgeted to be $24,000 and $26.000 February. All purchases are paid 40% in the month of purchase and 60% the follo month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $8,000 in December. Budgeted salaries in Janu- ary are $9,000 and February budgeted salaries are $10,500. Sales commissions each month are 8% of that month's sales. d. Rent expense is $3,500 per month. e. Depreciation is $2,100 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $12,500. g. The cash balance at the end of the prior year was $22,000. Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments purchases, and (c) budgeted cash payments for operating expenses. Show totas each month and totals for January and February combined. tivity takes place, what is the budgeted cash balance on February 28? 32A Combined cash budgot Ohiou
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Master Budget
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.
Sales Budget and Selling
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.
Question
Transcribed Image Text:Prepare Hilton
goods sold computations.
2. Prepare a combined cash budget similar to exhibits in the chapter. If no financing ac-
P9-61A Cash budgets (Learning Objective 3)
and cash disbursements:
are
as follows:
Budgeted Sales Revenue
$62,000
January
$70,000
February.
b. Actual purchases of direct materials in December were $24,500. The companye
purchases of direct materials in January are budgeted to be $24,000 and $26.000 i
February. All purchases are paid 40% in the month of purchase and 60% the follow
month.
c. Salaries and sales commissions are also paid half in the month earned and half the
next month. Actual salaries were $8,000 in December. Budgeted salaries in Janu-
ary are $9,000 and February budgeted salaries are $10,500. Sales commissions each
month are 8% of that month's sales.
d. Rent expense is $3,500 per month.
e. Depreciation is $2,100 per month.
f. Estimated income tax payments are made at the end of January. The estimated tax
payment is projected to be $12,500.
g. The cash balance at the end of the prior year was $22,000.
Requirements
1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments
purchases, and (c) budgeted cash payments for operating expenses. Show totar
each month and totals for January and February combined.
tivity takes place, what is the budgeted cash balance on February 28?
32A Combined cash budgot
Obiosti
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