Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2022:AprilCredit salesCredit purchasesCash disbursementsWages, taxes, and expensesInterestEquipment purchases$ 406,000183,000May$ 355,000171,000June$ 443,000204,00080,1009,80035,00075,600104,3009,8007,5009,800151,000The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collectedin the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases willbe paid in the month following the purchase. In March 2022, credit sales were $333,000.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.Beginning cash balanceAprilMay$113,000Cash receiptsCash collections from credit salesTotal cash availableCash disbursementsPurchases$175,000Wages, taxes, and expensesInterestEquipment purchasesTotal cash disbursementsEnding cash balanceJune

April May June From March Credit Sales [ $333,000 x 60% ] $ 199,800.00 $ -…

Answered: Here are some important figures from…

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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Whispering Winds Landscaping Company is preparing its budget for the first quarter of 2022. The next step in the budgeting process is to prepare cash receipts and cash payments schedules. 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 2021 and expected service revenues for 2022 are: November 2021, $130,000; December 2021, $100,000; January 2022, $144,000; February 2022, $161,000; March 2022, $170,000.Purchases of landscaping supplies are paid 30% in the month of purchase and 70% the following month. Actual purchases for 2021 and expected purchases for 2022 are: December 2021, $21,000; January 2022, $19,600; February 2022, $22,400; March 2022, $27,500. Determine the account receivable balances at March 31, 2022.
1-> O O O O O O Baxter Company's budget committee provides the following information: (Click the icon to view the information.) Read the requirements. Requirement 1. Prepare the schedule of cash receipts from customers for January and February 2024. Assume cash receipts are 80% in sale and 20% in the month following the sale. Baxter Company Budgeted Cash Receipts from Customers Two Months Ended February 28, 2024 January Current month sales, 80% Prior month sales, 20% Total cash receipts Requirement 2. Prepare the schedule of cash payments for purchases for January and February 2024. Assume purchases are paid 60% purchase and 40% in the month following the purchase. Bud Tw 40% of last month's purcha 60% of current month's pu Total cash payments for pu Requirement 3. Prepare th accrual for Salaries and Co commissions are paid 30% is an expiration of the prep Budgeted Cash Variable expenses: 70% of last month's Comm 30% of current month's Co Total payments for variabl Fixed expenses 70%…
Preparing an operating budget—sales budget; inventory, purchases and COGS budget and S&A expense budget Ballard Office Supply’s March 31, 2018, balance sheet follows: The budget committee of Ballard Office Supply has assembled the following data. Sales in April are expected to be $160,000. Ballard forecasts that monthly sales will increase 2% over April sales in May. June’s sales will increase by 4% over April sales. July sales will increase 20% over April sales. Ballard maintains inventory of $7,000 plus 25% of the cost of goods sold budgeted for the following month. Cost of goods sold equal 50% of sales revenue. Monthly salaries amount to $3,000. Sales commissions equal 5% of sales for that month. Other monthly expenses are as follows: Rent: $3,400 Depreciation: $800 Insurance: $300 Income tax: $1,500 Requirements Prepare Ballard’s sales budget for April and May 2018. Round all calculations to the nearest dollar. Prepare Ballard’s inventory, purchases, and cost of goods…
WILDHORSE COMPANY Cash Budget $ S January $ Febru
B.2.A. The budget committee of Red Rose Company has the following data for preparing budgeted income statement for January 2022. 2- • Sales amount is expected to be $700,000. • Cost of goods sold is expected to be 75% of sales • Operating expenses are estimated to be: Sales Salaries $ 30,000 Advertising Delivery expense 5% of the monthly sales 3% of the monthly sales 4% of the monthly sales $ 5,000 per month $ 800 per month $ 600 per month $ 500 per month Sales Commissions Rent expense Depreciation Utilities Insurance • Income taxes are estimated to be 30% of income from operations Prepare "budgeted income statement" for January.
A. Prepare the cash budget of Meridian Machine Tools LLC for March to May 2020 from the following information. The company estimates its sales, purchases and other eexpenses as following January February March April Мay Particulars OMR OMR OMR OMR OMR 120,000 180,000 270,000 405,000 180,000 270,000 Sales 80,000 Purchases 60,000 90,000 135,000 Wages Admin -Expenses Selling & Distribution Expenses 18,000 23,000 32,000 45,000 50,000 10,000 20,000 25,000 30,000 35,000 12,000 24,000 36,000 48,000 42,000 The company also provides additional information to its estimates: 1. Cash sale are 20% of total sales; 50% of sales amount is collected in one month and the balance in two months 2. 25% of purchases are made on cash basis; 50% of purchases amount is paid within one month and the balance in two months 3. The time lag in the payments of wages is half (1/2) of the month and that of Admin. Expenses one month; Admin Expenses for each month include deprecation amounting to RO 5,000. 4. 10,000 6%…
Given the above information, the projected ending cash balance for February will be
Please show work2 and follow instructions
Concord Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $20,640 in the first quarter, and $3,440 increments are expected in the remaining quarters of 2022. Fixed expenses are expected to be $34,400 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2022. CONCORD COMPANY Selling and Administrative Expense Budget Quarter 2 3 $ $
AlNahdha 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 $60,000 . 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. $12,000 b.$22,000 c. None of the given answers d. $20,000 e. $10,000
The management accountant at L&P Merchandising & More, Michael Stona, is in the process of preparing the cash budget for the business for the quarter ending December 31, 2020. Extracts from the sales and purchases budgets are as follows: Month Cash Sales Purchases 2020 Sales On On Account Account August $121,000 $480,000 $390,000 September $95,500 $600,000 $360,000 October $132,680 $720,000 $480.000 November $105,900 $650,000 $400,000 December $216,000 $800,000 $500,000 An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 5/30, 790: 60% in the month of sale 30% in the first month following the sale 10% in the second month following the sale Accounts payable are settled as follows, in accordance with the credit terms 3/30. n60: 80% in the month in which the inventory is purchased 20% in the following month (ii) During November, the management of L&P…
Boris detergents expects to have a cash balance of P46,000 on January 1, 2020. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January P71,000, February P146,000. 2. Payments to suppliers: January P40,000, February P75,000. 3. Wages: January P30,000, February P40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January P21,000, February P24,000. These costs include depreciation of P1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January P15,000, February P20,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize P12,000 in cash. The Company has a line of credit at a local bank that enables it to borrow up to P25,000. The company wants to maintain a minimum monthly cash balance of P20,000. Prepare a cash budget for January and February.

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