On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All company's sales are made on account. The following information has been provided by Spicer's management. Month January February March April May Credit Sales $ 300,000 (actual) 400,000 (actual) 634,000 (estimated) 876,000 (estimated) 800,000 (estimated) The company's collection activity on credit sales historically has been as follows. Collections in the month of the sale Collections one month after the sale 11 50% 30

On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All company's sales are made on account. The following information has been provided by Spicer's management. Month January February March April May Credit Sales $ 300,000 (actual) 400,000 (actual) 634,000 (estimated) 876,000 (estimated) 800,000 (estimated) The company's collection activity on credit sales historically has been as follows. Collections in the month of the sale Collections one month after the sale 11 50% 30

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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The following data are from the budget of Ritewell Publishers. Half the company's sales are transacted on a cash basis. The other half are paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were $140, and total sales in January were $290. TT February March $ 420 April Total sales $ 440 $ 400 125 135 115 Cash purchases Credit purchases Labor and administrative purchases Taxes, interest, and dividends Capital expenditures 95 85 95 85 85 85 65 65 65 210 Complete the following cash budget. (Leave no cells blank. Enter '0' when necessary. Negative amounts should be indicated by a minus sign.) February March Aprit Sources of cash Collections on current sales Collections on amounts receivable Total sources of cash 0 $ Uses of cash Payments of accounts payable Cash purchases o search
Peach Corporation's only cash receipts are those derived from customer sales. Peach makes both cash sales and sales on account. For its credit sales, Peach collects 50% in the month of the sale, 40% in the month following the sale, and 10% in the second month following the sale. Peach is preparing its cash budget for the upcoming year. Sales on account for the month of March are budgeted at $150,000. The budgeted accounts receivable balance on March 1 is $113,000, of which $90,000 represents uncollected sales made in February and $23,000 represents uncollected sales made in January. If Peach's total cash receipts for the month of March are budgeted at $205,000, what are Peach's budgeted cash sales during March? O $17,000 O $35,000 $53,000 $71,000 O None of the above
Subject - account Please help me. Thankyou.
Flint, Inc. provided the following information: Projected merchandise purchases . March April $67,000 $75,000 Budgeted cash disbursements $ Flint pays for 40% of merchandise purchases in the month of the purchase and 60% in the following month. General operating expenses are budgeted to be $25,000 per month of which depreciation is $2,000 of this amount. Flint pays operating expenses in the month incurred. Calculate Flint's budgeted cash disbursements for May. May $81,000
Dog
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management. Month January February March April May Credit Sales $ 300,000 (actual) 400,000 (actual) 559,000 (estimated) 556,000 (estimated) 800,000 (estimated) The company's collection activity on credit sales historically has been as follows. Collections in the month of the sale Collections one month after the sale. Collections two months after the sale Uncollectible accounts. 50% 30 Cash balance on March 31 Cash balance on April 30 Cash balance on May 31 15 5 Spicer's total cash expenditures for March, April, and May have been estimated at $1.200,000 (an average of $400.000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter. Compute Spicer's budgeted cash…
On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the company's sales are made on account. The following information has been provided by Spicer's management. Month Credit Sales January $ 300,000 (actual) February 400,000 (actual) March 629,000 (estimated) April 571,000 (estimated) May 800,000 (estimated) The company's collection activity on credit sales historically has been as follows. Collections in the month of the sale 50 % Collections one month after the sale 30 Collections two months after the sale 15 Uncollectible accounts 5 Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400, 000 per month). Its cash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter. Compute Spicer's budgeted cash balance at the ends of March, April, and May.
subject - accounting
The following information was taken from Bonita Industries's cash budget for the month of July: Beginning cash balance $440000 Cash receipts 404000 Cash disbursements 558000 If the company's policy is to maintain a minimum end of the month cash balance of $430000, the amount the company would have to borrow in July is $286000. $144000. $10000. $26000.
A Company is preparing a cash budget for June The company has $83,750 cash at the beginning of June and anticipates $102,930 in cash receipts and $116,870 in cash disbursements during June. This company has an agreement with its bank to maintain a cash balance of at least $81 250. As of May 31. the company owes $30,000 to the bank To maintain the $81.250 required balance, during June the company must O Borrow $11 440 O Repay $13,940 O Borrow $30 000 Repay $30,000 O Repay $11,440
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash payments January $ 526,000 $ 472,800 February 412,000 358,800 March 459,000 528,000 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March. Note: Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.
Use the following information to prepare the September cash budget for PTO Company. Ignore the "Loan activity" section of the budget. a. Beginning cash balance, September 1, $43,000. b. Budgeted cash receipts from September sales, $259,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $77,000, and September (budgeted), $104,000. Payments for direct materials follow: 65% in the month of purchase and 35% in the first month after purchase. d. Budgeted cash payments for direct labor in September, $35,000. e. Budgeted depreciation expense for September, $3,200. 1. Budgeted cash payment for dividends In September, $55,000. g. Budgeted cash payment for Income taxes in September, $10,900. h. Budgeted cash payment for loan Interest in September, $1,600. PTO COMPANY Cash Budget Beginning cash balance Add: Cash receipts from sales Total cash available Add: Cash payments for Direct materials Direct labor Dividends Income taxes Interest on loan Total cash…