K Video Brian's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the company's upcoming cash receipts and cash disbursements: (Click the icon to view the information.) Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments for purchases, and (c) budgeted cash payments for operating expenses. Show totals for each month and totals for January and February combined. 2. Prepare a combined cash budget. If no financing activity takes place, what is the budgeted cash balance on February 28? Requirement 1a. Prepare a schedule of budgeted cash collections for January and February. Show totals for each month and totals for January and February combined. Brian's Restaurant Supply Cash Collections Budget For the Months Ended January 31 and February 28 Cash sales Collection on credit sales Total cash collections January More info a. Sales are 60% cash and 40% credit. Credit sales are collected 20% in the month of sale and the remainder in the month after sale. Actual sales in December were $56,000. Schedules of budgeted sales for the two months of the upcoming year are as follows: January.. February.. Budgeted Sales Revenue $ 61,000 $ 67,000 Get more help b. Actual purchases of direct materials in December were $23,000. The company's purchases of direct materials in January are budgeted to be $22,500 and $28,000 in February. All purchases are paid 30% in the month of purchase and 70% the following month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $7,000 in December. Budgeted salaries in January are $8,000 and February budgeted salaries are $9,500. Sales commissions each month are 8% of that month's sales. d. Rent expense is $2,700 per month. e. Depreciation is $2,400 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $11,500. g. The cash balance at the end of the prior year was $22,000.

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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Brian's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the company's upcoming cash receipts and cash disbursements:
(Click the icon to view the information.)
Requirements
1.
Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments for purchases, and (c) budgeted cash payments for operating expenses. Show totals for each month and
totals for January and February combined.
2.
Prepare a combined cash budget. If no financing activity takes place, what is the budgeted cash balance on February 28?
Requirement 1a. Prepare a schedule of budgeted cash collections for January and February. Show totals for each month and totals for January and February combined.
Brian's Restaurant Supply
Cash Collections Budget
For the Months Ended January 31 and February 28
Cash sales
Collection on credit sales
Total cash collections
January
More info
a. Sales are 60% cash and 40% credit. Credit sales are collected 20% in the month of sale and the
remainder in the month after sale. Actual sales in December were $56,000. Schedules of budgeted
sales for the two months of the upcoming year are as follows:
January..
February..
Budgeted Sales
Revenue
$
61,000
$
67,000
Get more help
b. Actual purchases of direct materials in December were $23,000. The company's purchases of direct
materials in January are budgeted to be $22,500 and $28,000 in February. All purchases are paid
30% in the month of purchase and 70% the following month.
c. Salaries and sales commissions are also paid half in the month earned and half the next month.
Actual salaries were $7,000 in December. Budgeted salaries in January are $8,000 and February
budgeted salaries are $9,500. Sales commissions each month are 8% of that month's sales.
d. Rent expense is $2,700 per month.
e.
Depreciation is $2,400 per month.
f. Estimated income tax payments are made at the end of January. The estimated tax payment is
projected to be $11,500.
g. The cash balance at the end of the prior year was $22,000.
Transcribed Image Text:K Video Brian's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the company's upcoming cash receipts and cash disbursements: (Click the icon to view the information.) Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments for purchases, and (c) budgeted cash payments for operating expenses. Show totals for each month and totals for January and February combined. 2. Prepare a combined cash budget. If no financing activity takes place, what is the budgeted cash balance on February 28? Requirement 1a. Prepare a schedule of budgeted cash collections for January and February. Show totals for each month and totals for January and February combined. Brian's Restaurant Supply Cash Collections Budget For the Months Ended January 31 and February 28 Cash sales Collection on credit sales Total cash collections January More info a. Sales are 60% cash and 40% credit. Credit sales are collected 20% in the month of sale and the remainder in the month after sale. Actual sales in December were $56,000. Schedules of budgeted sales for the two months of the upcoming year are as follows: January.. February.. Budgeted Sales Revenue $ 61,000 $ 67,000 Get more help b. Actual purchases of direct materials in December were $23,000. The company's purchases of direct materials in January are budgeted to be $22,500 and $28,000 in February. All purchases are paid 30% in the month of purchase and 70% the following month. c. Salaries and sales commissions are also paid half in the month earned and half the next month. Actual salaries were $7,000 in December. Budgeted salaries in January are $8,000 and February budgeted salaries are $9,500. Sales commissions each month are 8% of that month's sales. d. Rent expense is $2,700 per month. e. Depreciation is $2,400 per month. f. Estimated income tax payments are made at the end of January. The estimated tax payment is projected to be $11,500. g. The cash balance at the end of the prior year was $22,000.
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