Grimpen Ltd is preparing a cash budget for September to December. Budgeted sales receipts and budgeted cash outflows for inventories purchases are shown below: (click here to view financial information) The opening bank balance on 1 September is £12,547, and monthly expenses (other than depreciation) will continue at the August level of £100,133 per month for all months except November when they will increase to £400,532. All expenses are payable in the month following the expenditure. sponding figures. Negative figures More info Budgeted sales receipts: Sales receipts (£) September October 188,205 79,110 November 81,438 December 338,604 - X ation for September has already

Grimpen Ltd is preparing a cash budget for September to December. Budgeted sales receipts and budgeted cash outflows for inventories purchases are shown below: (click here to view financial information) The opening bank balance on 1 September is £12,547, and monthly expenses (other than depreciation) will continue at the August level of £100,133 per month for all months except November when they will increase to £400,532. All expenses are payable in the month following the expenditure. sponding figures. Negative figures More info Budgeted sales receipts: Sales receipts (£) September October 188,205 79,110 November 81,438 December 338,604 - X ation for September has already

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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Grit Company was formed on May 1, 2023. During May, 2023, the company reported sales on account of $750,000. During June, 2023, Grit Company reportes sales on account of $800,000. Anticipated collections patterns of accounts receivable indicate 40% will be collected in the month of sale, 10% in the next month, and the remainder in the following month. How much will appear on the cash receipts and disbursements budget prepared for June, 2023? $620,000 O $465,000 O $545,000 O $540,000
Vinubhai
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash payments January $ 520,000 $ 463,500 February 401,500 345,000 March 465,000 527,000 Kayak requires a minimum cash balance of $50,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)
The management of Palind Ltd decide to prepare a Cash Budget for November and December. The following information is available: Sales: Cash Credit Purchases Salaries & Wages Sundry Expenses WY Actual August September October R 194 500 287 300 510 000 72 600 17 800 R 235 700 350 000 490 000 72 600 18 400 R 275 000 410 000 495 000 72 600 22 000 Additional information: 1. Cash in respect of credit sales is collected as follows: • 50% within 30 days • 30% within 60 days • 15% within 90 days • The balance is written off as irrecoverable. 2. The following discounts are allowed on sales: Budgeted 7. The cash in the bank on 31 October was R44 500. November December R 250 500 400 400 520 000 72 600 22 600 R 368 000 697 000 680 000 72 600 25 700 • 10% on cash sales • 7.5% on credit sales if accounts are settled within 30 days. 3. All salaries, wages and sundry expenses are paid in cash. 4. Sundry expenses include depreciation of R4 200 per month. 5. Seventy-five (75%) of all purchases are on…
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts 523,000 $ Beginning cash balance Total cash available Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, Interest per month, paid at each month-end. The Interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1. 408,500 476,000 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Total cash payments Preliminary cash balance Loan activity Ending cash balance Cash payments $ 469,800…
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Evergreen Furniture, a retailing company, is preparing the cash budget for August. The following inventory information available: Estimated payments in August for purchases in August Estimated purchases for August Estimated cost of goods sold for August Estimated payments in August for purchases in July Estimated payments in August for purchases prior to July Inventories at beginning of August Required: What are the estimated cash disbursements in August? Estimated cash disbursements 70% $ 2,444,000 2,600,000 696,000 176,000 674,000
Dineshbhai
The following information is provided to assist in the preparation of the Cash Budget for Ding Ltd. for May 2020. The cash balance at 1 May 2020 is $30,000. Budgeted Sales ($) Budgeted Purchases ($) April 170,000 64,000 May 140,000 68,000 All sales are on cash basis and will be collected in the same month the sale is made. All purchases are made on credit and payments are made as follows: 60% of purchases are paid for in the month of purchase. 40% of purchases are paid for in the month following the purchase. The business plans to take out a small business loan of $50,000 at the end of May 2020 and will be repaying it back in July 2020. Selling and administrative expenses each month are $45,000. The selling and administrative expenses include monthly depreciation expense of $6,000. Sales commission is 15% of the total monthly sales, and paid to the staff at the end of every month. Equipment costing $35,000 is expected to be bought in May and paid in…
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