Month($)Wages($)From the following information, prepare a monthly cash budget for the three months ending 31st December 2019.Sales($)MaterialsOther Expenses($)Jun. (A)3,0001,800650385Jul. (A)3,2502,000750385Aug. (A)3,5002,400750425Sep.(A)3,7502,250.750475Oct. (E)4,0002,300800500Nov. (E)4,2502,500900550Dec. (E)4,5002,6001,000575(A) Actual; (E) - Estimated.=The credit terms are as follows:• Sales -10% of sales are in cash. On average, 50% of credit sales are paid in the next month, while the other50% are paid two months after the sale.• Creditors for material are paid 2 months after purchase.•Wages and other expenses are paid the same month.The cash and bank balance on 1st October is expected to be $1,500.Other information is given as follows:•Plant and machinery are to be installed in August at a cost of $24,000. This sum will be paid in monthlyinstallments of $500 each from 1st October.• Dividends from investments amounting to $250 are expected to be received on 31st December.• Income tax is to be paid in December $500

The objective of this question is to prepare a monthly cash budget for the three months ending 31st…

Answered: Month ($) Wages ($) From 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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Schedule of Cash Payments Select Physical Therapy Inc. is planning its cash payments for operations for the third quarter (July-September), 2017. The Accrued Expenses Payable balance on July 1 is $31,700. The budgeted expenses for the next three months are as follows: July August September Salaries $72,900 $88,800 $98,300 Utilities 6,000 6,700 7,900 Other operating expenses 55,400 60,400 66,500 Total $134,300 $155,900 $172,700 Other operating expenses include $4,000 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on March 1 of the current year. Of the remaining expenses, 75% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on July 1 relates to the expenses incurred in June. Prepare a schedule of cash payments for operations for July, August, and September. Select Physical Therapy Inc. Schedule of Cash Payments for Operations For the Three Months…
QOPPC company chief accountant has provided you with the following information relating to the next budget period. Expenses: (in GH¢) October November December Selling & distribution 20,000 30,000 34,000 General & administration 15,000 18,000 12,000 Bad debts 21,000 15,000 20,000 Rate 8,000 6,000 10,000 Interest charges 1,600 2,000 2,400 Depreciation expenses 30,000 10,000 10,000 Expenses are payable in the month of incurrence. 2. A contingent liability of GH¢10,000 is expected to mature in November 3. Estimated cash balance at the end of September will be GH¢5000. Cash balances should not be less than GH¢10,000. Cash can be borrowed in multiples of GH¢10,000 to finance any deficit at an interest rate of 15% per annum. 4. The sales manager's salary, which is GH¢ 7000 per month is expected to increase by GH¢1,000 every month after June 5. Motor vehicle will be purchased in November at GH¢240,000.…
The following information pertains to Direct Projects Ltd for the three months ended 31 December 2020. Actual October Budgeted November Budgeted December Revenue (20% for cash and 80% on credit) 360 000,00 380 000,00 400 000,00 Purchases (10% for cash 90% on credit) 240 000,00 280 000,00 320 000,00 Salaries and wages paid 40 000,00 60 000,00 60 000,00 Cash expenses 24 000,00 28 000,00 32 000,00 Depreciation 2 000,00 2 000,00 2 000,00 Additional information: It is expected that debtors will settle their accounts as follows: 20% in the month of invoice 70% in the month after the month of invoice, and 5% in the second month after the month of invoice. The remaining 5% is usually written off as bad debts. Trade creditors are paid in the month after the purchases at a discount of 5%. 50% of the salaries and wages are weekly wages. Because wages…
Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement Budgeted Net Operating Income May June
Pulham Company is preparing its direct labor budget for 2019 from the following production budget based on a calendar year: Quarter 1 2 3 4 Units 60,000 30,000 45,000 75,000 Each unit requires 2 hours of direct labor. The union contract provides for a 10% increase in wage rate to $11 per hour on October 1. Prepare a direct labor budget for 2019. V First Quarter PULHAM COMPANY Direct Labor Budget For the Year Ended December 31, 2019 Second Quarter Third Quarter Fourth Quarter Total
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The following information pertains to Omega Projects Ltd for the three months ended 31 December 2020. Actual Budgeted October November December R R R Revenue (20% for cash and 80% on credit) 360 000 380 000 400 000 Purchases (10% for cash 90% on credit) 240 000 280 000 320 000 Salaries and wages paid 40 000 60 000 60 000 Cash expenses 24 000 28 000 32 000 Depreciation 2 000 2 000 2 000 Additional information: It is expected that debtors will settle their accounts as follows: 20% in the month of invoice 70% in the month after the month of invoice, and 5% in the second month after the month of The remaining 5% is usually written off as bad Trade creditors are paid in the month after the purchases at a discount of 5%. 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were…
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LB Enterprises (LB) is preparing its budget for the first quarter of 2019. LB's balance sheet as of December 31, 2018 is as follows: Assets Liabilities Cash $5,000 Accounts Payable $9500 Accounts Recievable 28,000 Inventories Direct Materials 8,100 Finished Goods (500 Units) 16,870 Stockholders Equity Equipment - gross 45,000 Accumulated depreciation 15.000 Common Stock $15,000 Net Equipment 30,000 Retained Earnings 63,470 Total Assets $87,970 Total Liabilities and $87,960 Equity LB sells one product for $45/unit. The Company forecasts that it will sell 2,000; 1,500; 1,600; and 1,700 units in January, February, March and April, respectively. • Sales to customers are all on credit. 40% of the cash for these sales is collected in the month of the sale and the remaining 60% is collected in the following month. LB wants finished goods inventory equal to 25% of the next month's sales on hand at the end of each month. LB wants direct materials equal to 75% of the current month's production…

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