CASE 13.2 Cash Budgeting for You as a StudentLO13-1,LO13-8Individuals generally do not prepare statements of cash flows concerning their personal activities. But they do engage in cash budgeting-if not on paper,then at least in their heads.Assume it is December 29-a Monday. While you are in school, you share a modest apartment with several other students and work part time, both nearyour school to minimize expenses. In two days your share of the rent for January, $200, will be due. You now have $140 in the bank; every Friday youreceive a paycheck for $100. You probably see the problem. And it may not look too serious; you can find a way to deal with it. That's what budgeting is allabout.Let's take this example a step further. In addition to the facts given, your weekly cash payments include meals, $30; entertainment, $20; and gasoline, $10.Instructionsa. Using the following cash budget, compute your cash balance at the end of weeks 2, 3, and 4.Page 629Beginning cash balance.Expected cash receiptsLess: Expected cash outlays:Monthly rentMealsEntertainmentGasolineEnding cash balance.b. Evaluate your financial situation.Week1234$140100$(20)100$ ?100$ ?100(200)(30)(20)(10)$ (20)$ ?$?$ ?

Cash budget:The cash budget is drafted by the company to estimate the cash flow of the business over…

Answered: Instructions a. Using the following…

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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KAYAK COMPANYCash Budget JanuaryFebruaryMarchBeginning cash balance$30,000 $30,000 Add: Cash receipts525,000 400,000 450,000 Total cash available555,000 430,000 Less: Cash payments for All items excluding interest Interest on loan Total cash payments0 0 0 Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balanceLoan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month$0 $0 $0
eBook Question Content Area What is the amount of budgeted cash payments if purchases are budgeted for $470,000 and the beginning and ending balances of accounts payable are $98,000 and $89,000, respectively? Cash paid $fill in the blank 1
Cc. 194.
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Kat Ltd.'s September balance sheet contains the following information: Cash Accounts receivable. Allowance for doubtful accounts Merchandise inventory $ 37,500 (dr) 126,000 (dr) 2,800 (cr) 26,250 (dr) Management has designated $37,500 as the firm's minimum monthly cash balance. Other information about the firm and its operations is as follows: a. Sales revenues of $350,000, $420,000, and $312,500 are expected for October, November, and December, respectively. All goods are sold on account. b. The collection pattern for accounts receivable is 60% in the month of sale, 39% in the month following the month of sale, and 1% uncollectible, which is set up as an allowance. c. Cost of goods sold is 60% of sales revenues. d. Management's target ending balance of merchandise inventory is 10% of the current month's budgeted cost of goods sold. e. All accounts payable for inventory are paid in the month of purchase. f. Other monthly expenses are $49,250, which includes $3,500 of depreciation and…
QUESTION 4 REQUIRED Use the information provided by empire Traders to prepare the following for March and April 2024: 4.1 Debtors Collection schedule 4.2 Cash Budget INFORMATION The following information was provided by Empire Traders: 1. Empire Traders expects to have a favourable bank balance of R60 000 on 28 february 2024. 2. Budgeted sales figures for 2024 are as follows: January February March April Cash Sales R320 000 R370 000 R310 000 R 250 000 Credit Sales R370 000 R390 000 R320 000 R300 000 3. Thirty percent (30%) of the cash sales is to informal traders who are entitled to a discount of 10%. Collections from debtors are usually as follows: 80% is collected in the month after sale 20% is collected two months after the sale 4. Purchases of inventory are expected to be as follows: January February March April Total Purchases R410 000 R460 000 R400 000 R380 000 5. Sixty percent (60) of then purchases is for cash to take advantage of a discount of 15%. The balance is purchased on…
Part D Ken has created a budget, but he wonders if the budget fits his needs. Why would it be useful for Ken to keep records of his expenses and examine them at the end of the year? BIUX² X₂ 15px Space used (includes formatting): 0/15000 O A 2 6 13 8 19 Apr 3 11:36 O
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