Oneida Company's operations began in August. August sales were $180,000 and purchases were $120,000. The beginning cashbalance for september is $32,500. Oneida's owner approaches the bank for a $104,000 loan to be made on September 2 and repaidon November 30. The bank's loan officer asks the owner to prepare monthly cash budgets. Its budgeted sales, merchandisepurchases, and cash payments for other expenses for the next three months follow.BudgetedSalesMerchandise purchasesCash paymentsSalariesRentInsuranceRepayment of loanInterest on loanSeptemberOctober$ 220,000 $ 485,000225,000November$ 490,000205,000201,00031,00031,00031,00012,00012,00012,0004,1004,1004,1001,0401,040104,0001,040All sales are on credit where 72% of credit sales are collected in the month following the sale, and the remaining 28% collected in thesecond month following the sale. All merchandise is purchased on credit; 82% of the balance is paid in the month following apurchase, and the remaining 18% is paid in the second month.Required:Prepare the following for the months of September, October, and November.1. Schedule of cash receipts from sales.2. Schedule of cash payments for direct materials.3. Cash budget.

2.Schedule of Cash Payments for Direct Materials82% of purchases are paid in the month following the…

Answered: Oneida Company's operations began in…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 10EB: My Aunts Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the...

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Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?
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Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
Cougar Hotel is preparing a cash budget for October. The hotel has $12,000 cash at the ending of September and anticipates $30,000 in cash receipts and $34,500 in cash disbursements. Cougar Hotel has an agreement with its bank to maintain a cash balance of at least $10,000. As of September 31st, it owes $15,000 to the bank. To maintain the $10,000 required balance, during October the company must: borrow $4,500. borrow $2,500. borrow $10,000. borrow $7,500.
Eastern Enterprises is preparing a cash budget for June. Eastern has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Eastern Enterprises has an agreement with its bank to maintain a cash balance of at least $10,000. As of May 31, Eastern owes $15,000 to the bank. To maintain the $10,000 required balance, during June Eastern must: Group of answer choices: 1)Borrow $10,000. 2)Borrow $ 2,500. 3)Repay $ 2,500. 4)Borrow $ 4,500. 5)Repay $ 7,500.
Northern Company is preparing a cash budget for June. The company has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and $34,500 in cash disbursements during June. Northern Company has an agreement with its bank to maintain a cash balance of at least $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must:
Foyert Corporation requires a minimum $7,400 cash balance. Loans taken to meet this requirement cost 1% interest per month (paid at the end of each month). Any preliminary cash balance above $7,400 is used to repay loans at month-end. The cash balance on October 1 is $7,400, and the company has an outstanding loan of $3,400. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. October November December Cash receipts $ 23,400 $ 17,400 $ 21,400 Cash payments 26,100 16,400 14,600 Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.)
Urban Industries needs to maintain a minimum cash balance of $10,000 and has entered into an agreement with their bank to accomplish this. Urban is preparing a cash budget for September. Urban has $11,300 in cash at the beginning of September and anticipates $30,700 in cash receipts and $35,900 in cash payments during September. As of August 31, the company has no loans outstanding. To maintain the $10,000 required balance, during September the company must: O A. Borrow $3,900. O B. Borrow $10,000. OC. Borrow $5,200. OD. Repay $3,900. OE.Repay $6.100.
Foyert Corporation requires a minimum $6,300 cash balance. Loans taken to meet this requirement cost 2% interest per month (paid at the end of each month). Any preliminary cash balance above $6,300 is used to repay loans at month-end. The cash balance on October 1 is $6,300, and the company has an outstanding loan of $2,300. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. Cash receipts Cash payments October $ 22,300 24,450 November $ 16,300 15,300 December $ 20,300 15,700 Prepare a cash budget for October, November, and December. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Round your final answers to the nearest whole dollar.) FOYERT CORPORATION es Beginning cash balance Add: Cash receipts Total cash available Add: Cash payments for Interest on loan Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash…
The president of the retailer Prime Products has just approached the company's bank with a request for a $49,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Because the company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cash budget to help determine whether the loan should be made. The following data are available for the months April through June, during which the loan will be used: On April 1, the start of the loan period, the cash balance will be $38,500. Accounts receivable on April 1 will total $148,400, of which $127,200 will be collected during April and $16,960 will be collected during May. The remainder will be uncollectible. Past experience shows that 30% of a month’s sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% is bad debts that are never collected. Budgeted sales and expenses for the…
Western Company is preparing a cash budget for June. The company has $10,100 cash at the beginning of June and anticipates $31,900 in cash receipts and $38,300 in cash disbursements during June. Western Company has an agreement with its bank to maintain a minimum cash balance of $10,000. As of May 31, the company owes $15,000 to the bank. To maintain the $10,000 required balance, during June the company must: Borrow $6,300. Borrow $10,000. Repay $6,300. Repay $3,700. Borrow $6,400.

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