Here are some important figures from the budget of Nashville Nougats, Inc., for thesecond quarter of 2018:Credit salesCredit purchasesCash disbursementsWages, taxes, andAprilMayJune$322,000 $302,000 $362,000130,000 153,000 178,00044,20011,70063,200expensesInterestEquipment purchases11,200 11,20082,000 154,00011,200The company predicts that 5 percent of its credit sales will never be collected, 40percent of its sales will be collected in the month of the sale, and the remaining 55percent will be collected in the following month. Credit purchases will be paid in themonth following the purchase.In March 2018, credit sales were $192,000 and credit purchases were $132,000. Usingthis information, complete the following cash budget: (Do not round intermediatecalculations. Leave no cells blank - be certain to enter "O" wherever required.)Beginning cash balanceCash receiptsCash collections from credit salesTotal cash availableCash disbursementsPurchasesWages, taxes, and expensesInterestEquipment purchasesTotal cash disbursementsEnding cash balanceAprilMay125,000June

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Prepare a cash budget for Atlas Products, Inc. for the first quarter of 2011 based on the following information. Total Sales Credit Sales December 2010 $825,000 $770,000 January 2011 730,000 690,000 February 2011 840,000 780,000 March 2011 920,000 855,000 The company found that on average, about 25% of its credit sales are collected during the month when the sale is made, and the remaining 75% of the credit sales are collected during the month following the sale. The company estimates its purchases at 60% of the next month’s sales and payments for those purchases are budgeted to lag the…
The following information is applicable to Shine Wholesalers for the year 2020: Budgeted sales:July R105 000August R132 000September R165 000 In October 2020, sales are expected to increase by 20% relative to sales in September 2020. Cash sales amount to 20% of total sales. 55% of all credit sales are collected in the month of sale, with a discount of 10% to those debtors who pay during thistime. The outstanding credit sales are collected in equal instalments over the next two months. There are no bad debts. Purchases of raw materials are expected to be sufficient to meet 60% of the total sales for the next month. The companynormally settles half of its creditors in the month following the month of purchase. The remaining creditors are paid twomonths after the month of purchase. Wages and salaries are paid to employees at the end of the month in which they are earned. Wages and salaries areexpected to be:June R22 200July R20 500 Required:Prepare a cash budget for Shine…
In May 2022, the budget committee of Concord Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. 2. 3. 4. (a) Expected sales: June $430,000, July $516,000. Cost of goods sold is expected to be 75% of sales. Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold. The beginning inventory at June 1 will be the desired amount. Your answer is correct. Compute the budgeted merchandise purchases for June. (b) Budgeted Cost of Goods Sold Add V Total Less V CONCORD STORES Merchandise Purchases Budget For the Month Ending June 30, 2022 Desired Ending Merchandise Inventory Beginning Merchandise Inventory Required Merchandise Purchases eTextbook and Media V CONCORD STORES Budgeted Income Statement (Partial) $ Prepare the budgeted multiple-step income statement for June through gross profit. $ $ 322500 116100 438600 (96750) 341850 Attempts: 2 of 3 used
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The budget committee of Suppar Company collects the following data for its San Miguel Store in preparing budgeted income statements for May and June 2020. 1. Sales for May are expected to be $800,000. Sales in June and July are expected to be 5% higher than the preceding month. 2. Cost of goods sold is expected to be 75% of sales. 3. Company policy is to maintain ending merchandise inventory at 10% of the following month's cost of goods sold. 4. Operating expenses are estimated to be as follows: $35,000 per month 6% of monthly sales 2% of monthly sales 5% of monthly sales $5,000 per month $800 per month $600 per month $500 per month 5. Interest expense is $2,000 per month. Income taxes are estimated to be 30% of income before income taxes. Sales salaries Advertising Delivery expense Sales commissions Rent expense Depreciation Utilities Insurance Requirements: a. Prepare the merchandise purchases budget for each month in columnar form. b. Prepare budgeted multiple-step income statements…
Farooq Company has accumulated the following budget data for the year 2020. Sales: 60,000 units, unit selling price $80. Cost of one unit of finished goods: Direct materials 3 pounds at $5 per pound, direct labor 3 hours at $6 per hour, and manufacturing overhead $7 per direct labor hour. Selling and administrative expenses: $750,000. Income taxes: 30% of income before income taxes. Instructions (a) Prepare a schedule showing the computation of cost of goods sold for 2021.
Sheffield Company combines its operating expenses for budget purposes in a selling and administrative expenses budget. For the first six months of 2022, the following data are available: 1. 2 3. 4 Sales: 19,800 units in quarter 1: 21.300 units in quarter 2 D Variable costs per dollar of sales: sales commissions 5%; delivery expense 2%; and advertising 4% Fixed costs per quarter: sales salaries $10,700; office salaries $8,300: depreciation $4,300; insurance $1,300: utilities $800; and repairs expense $600 Unit selling price: $19 Prepare a selling and administrative expenses budget by quarters for the first six months of 2022 SHEFFIELD COMPANY Selling and Administrative Expenses Budget For the Six Months Ending June 30, 2022 2 Total
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…
Kupa Ltd has approached to assist in preparing a cash budget. The annual and projected sales are provided below. date Oct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 April 2021 May 2021 June 2021 July 2021 Sales (in ‘000’) 2000 1970 1900 2100 2200 2240 2000 2160 2180 2200 45% of cash sales are on cash basis. Of credit sales, 35% is collected in the month of sale, 40% one month after sale and 20% two months from sales Gross profit margin is 20%. Goods purchased in a given month are sold in the following month after the month of purchase. Payment of purchases is as follows, 60% is paid one month after purchase and the remainder two months after purchase. Required Compute Cash collected from sales in month of January and February 2021 Cash paid to suppliers of goods in the months of January and February 2021
The Budget committee of Georgina Company collect the following data for its Westwood Store in preparing budgeted Income Statement s for July and August 2018 Expected Sales: July 400,000, August 450,000 September 500,000 Cost of goods sold is expected to be 64% of Sales Company policy is to maintain ending merchandise inventory at 25% of the following month cost of goods sold Operating expenses are estimated to be: Sales salaries P40, 000 per month Advertising 4% of monthly sales Delivery expense 2% of monthly sales Sales commission 3% of monthly sales Rent expense P3, 000 per month Depreciation P 700 per month Utilities P 500 per month Insurance P 300 per month 5. Income taxes are estimated to be 30% of Income from operation…
In preparation for the quarterly cash budget, the revenue and cost information have been compiled as follows: Month Sales (RM) Purchases (RM) August 2018 (actual) 3,000,000 3,500,000 September 2018 (actual) 4,500,000 2,000,000 October 2018 (forecast) 1,000,000 500,000 November 2018 (forecast) 1,500,000 750,000 December 2018 (forecast) 2,000,000 1,000,000 The firm collect 60 percent of sales for cash and 40 percent of its sales one month later. Interest income of RM50,000 on marketable securities will be received in December. The firm pays the purchases of 40 percent in cash and 60 percent in following month. Salaries and wages are RM450,000 in September, RM200,000 in October, RM150,000 in November and RM225,000 in December. Sales commissions are 2 percent of the preceding month's sales. Lease payments of RM150,000 must be made each month. A principal and interest payment on an outstanding loan is due in December of RM150,000. The firm pays dividends of RM50,000 at the…
Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2022: April May June $399,000$ 348,000 $436,000 176,000 164,000 197,000 Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts The company predicts that 5 percent of its credit sales will never be collected, 30 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2022, credit sales were $326,000. Cash collections from credit sales Total cash available Cash disbursements Using this information, complete the following cash budget. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Purchases Wages, taxes, and expenses Interest Equipment purchases 79,400 9,100 31,500 Total cash…

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