NUBD Co., a merchandising firm, is preparing its master budget and has gathered the following data to help budget cash disbursements: Budgeted data: Cost of goods sold Desired decrease in inventories Desired decrease in accounts payable P1,680,000 P80,000 P150,000

NUBD Co., a merchandising firm, is preparing its master budget and has gathered the following data to help budget cash disbursements: Budgeted data: Cost of goods sold Desired decrease in inventories Desired decrease in accounts payable P1,680,000 P80,000 P150,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Which of the following serve as the basis for recording appropriate expenses each time the fund is…

A: The custodian is responsible for the petty cash fund. At the ending of accounting period the fund is…

Q: The actual cash received from cash sales was $36,006, and the amount indicated by the cash register…

A: Cash short and over = Cash sales - cash received = $36,010 - $36,006 = $4

Q: Cullumber Corporation shipped $21,600 of merchandise on consignment to Oriole Company. Cullumber…

A: Method of recording financial transactions in the book of original entries by debiting and crediting…

Q: The end-of-the month balance in Igado’s cash disbursement journal “Sundry Account” column is…

A: Cash Payment Journal: It is a special Journal where all cash payments are recorded and it is used…

Q: Open a ledger account for Cash in balance column format. Post general journal entries that impact…

A: The ledger account is prepared in t-format. It is also called a t-account or subsidiary ledger. It…

Q: What specific information would you need to begin a cash receipts forecast?

A: Cash receipt forecast is a forecast of cash receipts i.e. cash being received by the company. A…

Q: Describe good cash management practices involving inventory purchases

A: Cash management: Cash management contains the method and procedures that a company should use as…

Q: Below is the ledger of XYZ Company Account Titles Accounts Receivable Accumulated depreciation -…

A: Answer:- 1. Net assets = Total assets - Total liabilities 2. Total liabilities = Total non-current…

Q: Silver Company makes a product with peak sales in May of each year. Its sales budget for the second…

A: The account receivables represent the amount due from the customers. The cash collection schedule is…

Q: Describe and use the cash receipts journal. List theree items of information about each cash receipt…

A: Cash Receipts Journal: It is a special book where only cash receipts transactions that are…

Q: When the cash count sheets for the day equal $14280 and the cash register reports $14280 the journal…

A: Journal entry: It refers to the recording of company's financial transactions in it's primary book…

Q: Compute the total increase (or decrease) for the Home Office account balances on December 31, 2021.

A: To find out TOTAL increase or (decrease) for Home Office Account Balance, first we will have to make…

Q: At year-end, Mariz Company reported cash and cash equivalent comprising: cash on hand P 500,000,…

A: Cash : Cash is a legal tender that are used as an exchange for goods , debt or service. Sometimes…

Q: 1. What is the definition of a total cash received during the year? How it is important to the to…

A: Approach to Solving the Question:Define Each Concept: Let commence with the description of what each…

Q: How to make monthly cash flow statement in Excel. Give me an example.

A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…

Q: how to compute the unadjusted cash in bank per ledger at month-end?

A: Cash in bank refers to the amount which a person or business has deposited in the bank. It is a part…

Q: Entry for cash sales; cash overThe actual cash received from cash sales was $315,280, and the amount…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: List and discuss at least five of the steps involved in the sales and cash receipt procedures of the…

A: SELLING PRODUCT The revenue cycle starts once a corporation prepares to sell a product or service to…

Q: The term cash as used on the statement of cash flows includes all the following EXCEPT: A) cash due…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

Q: Which of the following is normally recorded in the cash disbursement journal? a. Payment made to…

A: Cash Disbursement Journal: It is a record kept by the accountants of all the expenditures made by…

Q: Question 5: Which report compares what you expected to spend with what you did spend? Answer: A. B.…

A: Variance analysis is a financial analysis technique used to identify and explain the differences…

Q: what were the cash collections from customers during the period?

Q: An increase in inventory balance would be reported in a statement of cash flows using the indirect…

A: Changes in the operating assets of the business is the operating activity. Inventory is the…

Q: The actual cash received from the day’s cash sales was $27,214, and the amount indicated by the cash…

A: Cash register record the amount of cash received in a given day and it should match with cash in…

Q: hello may i ask how much is the net adjustment to the cash account? including debit or credit thank…

A: Assets have debit balance and Liabilities have credit balance. Cash account is current asset with a…

Q: The time between the acquisition of inventory and the collection of cash from receivables is called…

A: Options given are:Cash cycleOperating cycleAccounts receivable periodInventory period

Q: Which of the following items should be included in the Cash? O A. O B. Postdated checks and I.O.U.'s…

A: Cash and Cash equivalents are coins ,notes bill, cash at bank and any marketable security that can…

Q: Compute for the Required Total Financing or Excess Cash Balance given the following information:…

A: Cash Cash is considered to be the backbone of the company to conduct the day to day affairs of the…

Q: 2. Which of the following statements accurately describes the statement of cash flows? A) It shows…

A: Cash flow statement (CFS) refers to the financial statement of business which states the financial…

Q: In addition to the three basic financial statements, which of the following is also a required…

A: The answer is as fallows

Q: How much cash is received from sales to customers for year 2021? Assume all the sales were made on…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Write a note on cash discounts.

Q: This method consists of taking the estimated statement of income for the next period and adding or…

A: The cash flow statement (CFS) is a part of financial statement of the Company which elaborates the…

Q: The previous cash balance is important when beginning work on the cash budget because

A: The cash budget is the method of analysing the actual cash movements to the company and its overall…

Q: Prepare a complete statement of cash flows using the indirect method for the current year. Note:…

A: The cash flow statement is prepared to record the cash flow from various activities during the…

Q: Which of the following is a correct statement? Beginning cash balance is equivalent to the previous…

A: The statement is correct statement Statement 2 is incorrect as total expenses / outflows include…

Q: Define restricted cash and indicate how it should bereported on the balance sheet

A: Balance sheet: Balance Sheet is one of the financial statements that summarize the assets, the…

Q: ch of the following is used in computing cash payments for merchandise using the direct method?…

A: Merchandise refers to the variant types of commodities or goods that are being produced and sold by…

Q: Prepare a cash flow statement (indirect method) from the given information.

A: The cash flow statement is one of the important financial statements which is prepared at the year…

Concept explainers

Cash budget

A cash budget is an estimate of an organization's cash flow for the future period. A cash budget forecasts future cash receipts and payments from various sources for a fiscal year. A cash budget can be created once a month or once a week to determine the organization's cash position and ensure its performance in relation to the budget. It aids in determining whether the company has enough cash and cash equivalents to meet its operational needs in the future. If cash receipts are insufficient to cover future expenses, an organization may plan to obtain funds from other sources. After estimating the sales, purchase, and capital expenditure budgets for the year, management develops a cash budget. These budgets are created to ensure that an organization's cash flow is managed. It is important to note that only cash transactions are recorded when actual cash enters and exits an organization.

Question

All of the accounts payable are for inventory purchases and all inventory items are purchased on account. What are the estimated cash disbursements for inventories for the budget period?

NUBD Co., a merchandising firm, is preparing its master budget and has gathered
the following data to help budget cash disbursements:
Budgeted data:
Cost of goods sold
Desired decrease in inventories
Desired decrease in accounts payable
P1,680,000
P80,000
P150,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 : Working notes

VIEW

Step 2 : Calculation of estimated cash disbursements for inventories for the budget period

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Describe an entry needed to establish a $50 petty cash fund and an entry to reimburse the fund
29- What is the financial statement that shows how much cash is provided from which sources and how much cash is spent in a certain period ? a) Fund Flow Chart B) Income statement NS) Cash Flow Statement D) Statement of Financial Position TO) Cost of Sales Table
Short note on cash inflow and outflow.
discuss the flow of cash through transactions cycle. In your discussions include the relevant sub systems and any time lag that may occur
am.104.
H7. What specific information would you need to begin a cash receipts forecast? Identify three items that would be helpful. Please explain with details
Kk.369.
Explain the effect of adjusting journal entries on cash.
What is Target’s balance of cash equivalents for the fiscal year ended January 30,2016?
based on the attached what is the answer?
how do we record in the cash payment journal for the payment in cash and with the GST included and received discount
Which is not a section of the cash budget? Opening Balance Cash disbursements Allowance for Doubtful Accounts Cash receipts