Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2021: Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Purchases Wages, taxes, and expenses Interest April May June $312,000 $292,000 $352,000 120,000 143.000 168,000 In March 2021, credit sales were $182,000 and credit purchases were $122,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "O" wherever required.) Equipment purchases Total cash disbursements 43,200 10,200 72,000 Ending cash balance 10,700 10,200 134,000 $ 62,200 10,200 0 April 115,000 May June

Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2021: Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Purchases Wages, taxes, and expenses Interest April May June $312,000 $292,000 $352,000 120,000 143.000 168,000 In March 2021, credit sales were $182,000 and credit purchases were $122,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "O" wherever required.) Equipment purchases Total cash disbursements 43,200 10,200 72,000 Ending cash balance 10,700 10,200 134,000 $ 62,200 10,200 0 April 115,000 May June

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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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, Inc., for the second quarter of 2018: Credit sales Credit purchases Cash disbursements Wages, taxes, and April May June $322,000 $302,000 $362,000 130,000 153,000 178,000 44,200 11,700 63,200 expenses Interest Equipment purchases 11,200 11,200 82,000 154,000 11,200 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2018, credit sales were $192,000 and credit purchases were $132,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "O" wherever required.) Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases Wages,…
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…
The controller of Optimum wishes to improve the company's control system by preparing a monthly cash budget. The following information relates to the month ending July 31, 2021: June 30, 2021, cash balance Dividends were declared on June 15* $130,000 44, 000 83,600 13,000 198,000 122,400 47,000 70, 000 Cash expenditures to be paid in July for operating expenses Depreciation expense Cash collections to be received Merchandise purchases to be paid in cash Equipment to be purchased for cash Optimum wishes to maintain a minimum cash balance of *Dividends are payable to shareholders of record on declaration date, 30 days after declaration. Required: 1. Prepare a cash budget for the month ending July 31, 2021, indicating how much, if anything, Optimum will need to borrow to meet its minimum cash requirement. (Leave no cells blank - enter "O" wherever required).
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter $ 180,000 $ 260,000 Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest 2nd Quarter $ 330,000 $ 230,000 The company's beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for…
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Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 370,000 $ 338,000 $300,000 $ 358,000 Borrowings Repayments Interest The company's beginning cash balance for the upcoming fiscal year will be $35,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Total financing Endinn…
You are required to prepare the cash budget for the two months of January and February 2021. The following is the projected information: January 2021 February 2021 Cash sales R280,336 R305,132 Receivables collection R69,602 R70,277 Cash purchases R34,997 R36,515 Rent payment R7,545 R7,545 The bank balance on 1 January 2021 is expected to be R201,806 favourable. A fixed deposit for R113,959 is expected to mature on 25 January 2021. Equipment to the value of R142,119 is to be purchased on credit in January 2021 and will be paid in full on 28 February 2021. The expected closing bank balance on 31 January 2021 will be R _________ .
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: April May June Credit sales $ 312,000 $ 292,000 $ 352,000 Credit purchases 120,000 143,000 168,000 Cash disbursements Wages, taxes, and expenses 43,200 10,700 62,200 Interest 10,200 10,200 10,200 Equipment purchases 72,000 134,000 0 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $182,000, and credit purchases were $122,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.)
Use the following information to prepare a cash budget for Knightsbridge Corporation for the month of June 2020. In May, credit sales were $175,000; 80% of this amount is estimated to be collectible in June. June sales are estimated to be $340,000, all of which are credit sales. Only 20% of credit sales are collected in the month in which the sale is made. Total fixed expenses are $60,000 per month, including $26,000 depreciation. Variable expenses are 35% of sales. All expenses requiring payment are paid in cash when incurred. A $40,000 note payable must be paid on June 30. As of May 31, the cash balance is $94,000.
Coronado Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $331,200 $368,000 Direct materials purchases 110,400 115,000 Direct labor 82,800 92,000 Manufacturing overhead 64,400 69,000 Selling and administrative expenses 72,680 78,200 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $920 of depreciation per month.Other data: 1. Credit sales: November 2021, $230,000; December 2021, $294,400. 2. Purchases of direct materials: December 2021, $92,000. 3. Other…
4. Al - Nahdha company is preparing its cash budget for the first half of the year 2022. The company records shows that it has $ 20,000 in the cash at the start of the period. Cash collections from customers for the period are budgeted at $ 56,000. Purchases of inventory as budgeted will cost cash payment during the period of $ 50,000. The Company intends to keep its cash balance at the end of the period at $ 10,000. Other operating expenses for this period are budgeted at $ 30,000, which includes $ 4,000 depreciation and any cash expenses are paid in the month incurred How much borrowing will the company need in the first half of 2022?