JanuaryFebruaryMarchWages and salaries$250,000$290,000$290,000Rent27,00027,00027,000Other expenses10,00012,00014,000In addition, a tax payment of $105,000 is due on January 15, and $40,000 in dividends willbe declared in January and paid in March. Also, the company has ordered a $75,000 pieceof equipment. Delivery is scheduled for early January; and payment will be due in February.The company's projected cash balance at the beginning of January is $100,000, and thecompany desires to maintain a balance of $100,000 at the end of each month. Prepare a cash budget for Atlas Products, Inc. for the first year of 20X2, based onthe following information.The budgeting section of the corporate finance department of Atlas Productshas received the following sales estimates from the marketing department:Total SalesCredit SalesDecember 20X1$825,000$770,000January 20X2730,000690,000February 20X2840,000780,000March 20X2920,000855,000The company has found that, on average, about 25 percent of its credit sales arecollected during the month when the sale is made, and the remaining 75 percent of creditsales are collected during the month following the sale. As a result, the company uses thesefigures for budgeting.The company estimates its purchases at 60 percent of next month's sales, and paymentfor those purchases are budgeted to lag the purchases by 1 month.2.

Cash Budget The purpose of preparing the cash budget to know the details of total cash flows and…

January February March Wages and salaries $250,000 $290,000 $290,000 Rent 27,000 27,000 27,000 Other expenses 10,000 12,000 14,000 In addition, a tax payment of $105,000 is due on January 15, and $40,000 in dividends will declared in January and paid in March. Also, the company has ordered a $75,000 piece equipment. Delivery is scheduled for early January; and payment will be due in February. The company's projected cash balance at the beginning of January is $100,000, and the hpany desires to maintain a balance of $100.000 at the end of each month.

January February March Wages and salaries $250,000 $290,000 $290,000 Rent 27,000 27,000 27,000 Other expenses 10,000 12,000 14,000 In addition, a tax payment of $105,000 is due on January 15, and $40,000 in dividends will declared in January and paid in March. Also, the company has ordered a $75,000 piece equipment. Delivery is scheduled for early January; and payment will be due in February. The company's projected cash balance at the beginning of January is $100,000, and the hpany desires to maintain a balance of $100.000 at the end of each month.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Lindor Enterprises projects sales for the first three months of the year to be: $10,100 in January, $12,400 in February, and $12,900 in March. Cash receipts are expected to be: $8,450 in January, $11,770 in February, and $12,810 in March.They anticipate the following cash payments: Lindor Enterprises January February March Direct materials purchased $3,500 $4,000 $4,900 Direct labor costs $3,000 $4,100 $3,600 Depreciation on plant $510 $510 $510 Utilities for plant $650 $650 $650 Property taxes on plant $140 $140 $140 Depreciation on office $560 $560 $560 Utilities for office $370 $370 $370 Property taxes on office $170 $170 $170 Office salaries $2,900 $2,900 $2,900 All costs are paid in the month incurred except: direct materials, which are paid in the month following the purchase; utilities, which are paid in the month after incurred; and property taxes, which are prepaid for the year on January 2. The Accounts Payable and Utilities Payable accounts have a…
page Fraser Company has forecast purchases on account to be $210,000 in March, $270,000 in April, $320,000 in May, and $390,000 in June. Seventy percent of purchases are paid for in the month of purchase, the remaining thirty percent are paid in the following month. What are budgeted cash payments for April? O a. $252,000 O b. $285,000 O c. $126,000 O d. $159,000 irses.open.uwi.edu/mod/quiz/attempt.php?attempt=63242&cmid-99810&page-14 pe here to search S J £ 3 E $ 4 O BI R JU F JU % 5 C T 6 B & H U 8 Time left 0:28:46 W Next page 28°C Mostly
Newman Medical Clinic has budgeted the following cash flows. January February March $101,000 $107,000 $127,000 Cash receipts Cash payments For inventory purchases For S&A expenses Newman Medical had a cash balance of $8,500 on January 1. The company desires to maintain a cash cushion of $6,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Newman pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results. Cash Budget Beginning cash balance Add: Cash receipt Cash available Less: Cash payments 90,500 31,500 Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) For inventory purchases For S&A expenses Interest expense per month…
None
#13
Schedule of cash payments for a service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $143,400 April 131,900 May 120,000 Depreciation, insurance, and property taxes represent $30,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 63% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.
Schedule of Cash Payments Tadpole Learning Systems Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $184,900 April 172,000 May 156,500 Depreciation, insurance, and property taxes represent $39,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taves for the year will be paid in November. 71% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule indicating cash payments for selling and administrative expenses for March, Apri, and May. Enter all amounts as positive numbers. TADPOLE LEARNING SYSTEMS INC. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March Apr May March expenses Paid in March Paid in April Apri expenses Paidin April Pad in May May expenses Prepare a…
Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $25,600. The budgeted expenses for the next three months are as follows: January February $58,900 $71,700 $79,400 4,900 5,400 6,400 45,400 49,500 54,500 $109,200 $126,600 $140,300 Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Salaries Utilities Other operating expenses Total Prepare a schedule of cash payments for operations for January, February, and March. EastGate Physical Therapy Inc. Schedule of Cash Payments for Operations…
Please help me with show all calculation thanku
Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $25,600. The budgeted expenses for the next three months are as follows: January February March Salaries $58,900 $71,700 $79,400 Utilities 4,900 5,400 6,400 Other operating expenses 44,800 48,800 53,800 Total $108,600 $125,900 $139,600 Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.
5
Schedule of cash payments for a service company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $26,200. The budgeted expenses for the next three months are as follows: January February March Salaries $60,300 $73,400 $81,200 Utilities 5,000 5,500 6,600 Other operating expenses 46,400 50,600 $5,700 Total $111,700 $129,500 $143,500 Other operating expenses include $3,300 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previous year of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Prepare a schedule of cash payments for operations for January, February, and March. EastGate Physical Therapy Inc. Schedule of Cash Payments for…