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, 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…
B. Mahmoud Repair Company is preparing its budget for the first quarter of 2021. The next step in the budgeting process is to prepare a cash receipts schedule and a cash payments schedule. To that end the following information has been collected. Clients usually pay 60% of their fee in the month that service is provided, 30% the month after, and 10% the second month after receiving service. Actual service revenue for 2016 and expected service revenues for 2021 are: November 2020, $120,000; December 2020, $110,000; January 2021, $140,000; February 2021, $160,000; March 2021, $170,000. Purchases on landscaping supplies (direct materials) are paid 40% in the month of purchase and 60% the following month. Actual purchases for 2020 and expected purchases for 2021 are: December 2020, $21,000; January 2021, $20,000; February 2021, $22,000; March 2021, $27,000. Instructions (a) Prepare the following schedules for each month in the first quarter of 2021 and for the quarter in total: (1)…
Waterway Company prepares monthly cash budgets. Relevant data from operating budgets for 2027 are as follows. January February Sales $460,800 $512,000 Direct materials purchases 153,600 160,000 Direct labor 115,200 128,000 Manufacturing overhead 89,600 96,000 Selling and administrative expenses 101,120 108,800 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, which include $1,280 of depreciation per month. Other data: 1. Credit sales: November 2026, $320,000; December 2026, $409,600. 2. Purchases of direct materials: December 2026, $128,000. 3. Other receipts: January-Collection of December 31, 2026, notes…
Kronos Ltd is preparing a cash budget for May and June of 2021. Past records reveal that 15% of all credit sales are collected during the month of sale, 45% in the month following the sale, 30% in the second month following the sale and 10% in the third month following the sale. The company pays for 55% of purchases in the month after purchase, and the balance is paid in the month following that. Selling expenses amount to $2 400 per month plus 10% of monthly sales. Administrative expenses are estimated to be $9 800 per month, which includes $2 600 of depreciation expense. Finance expenses are $1600 per month. All selling and distribution, administrative, and finance and other expenses (except depreciation) are paid for when incurred. It is planned to purchase equipment during May 2019 at a cost of $7 500. A $5 800 loan payable will be repaid in full including interest charges during June 2019. The interest due at maturity date will be $750. The company’s expected…
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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?
A sendai clothing wholesaler was preparing its sales budget for the first quarter of 2020. Forecast sales are as follows: January $ 203,000 February $ 227,000 March $ 248,000 Sales are 40% cash and 60% on credit. 55% of the credit accounts are collected in the month of sales, 35% in the month following the sale, and 10% in the following month. Accounts receivable at the beginning of 2020 are $ 82,950 (10% of November credit sales of $ 150,000 and 45% of December credit sales of $ 151,000). Prepare a sales budget and cash collections for January, February, and March, 2020