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- Rishi Sunak Manufacturing Pte. Ltd. is preparing its budget for next year. The company estimates that it will be making the following raw materials purchases in the last five months of 2021: $200,000 in August, $220,000 in September, $250,000 in October, $280,000 in November and $240,000 in December. The company anticipates that it will pay 55% of what is owed one month after the month of purchase, 30% of what is owed two months after the month of purchase and the remaining 15% three months after the month of purchase. What figure will be presented in the company’s cash budget for payments for raw materials purchases in December 2021? $233,500 $253,500 $262,000 $403,500Hillary's Health Food Store has estimated monthly current asset financing requirements for the next six months as follows: January February March April May June Current Assets Temporary Permanent $6,000 $4,000 $1,000 $4,000 $2,000 $4,000 $6,500 $4,000 $5,000 $4,000 $2,000 $4,000 Projected annual borrowing rates for the next six months are: January February 6.0% April 12.0% May 9.0% June 7.0% March 9.0% Short- Term Long- Term 5.0% 9.6% 9.6% 9.6% 9.6% 9.6% 9.6% Required: a. Assuming the company follows the hedging strategy, calculate the TOTAL dollar interest payments for the six months. b. If the company implemented a risky strategy would you expect total dollar interest payments to be higher or lower, briefly explain your answer (calculation not required).In 2021 the company “AROFAH” will prepare a cash budget. The cash receipts and disbursements plan for the first six months (January to June) are as follows: Admission Plan: Sales Receipts: Sales are made in cash as much as 50% and 50% credit of sales. Of credit sales, 60% is received one month after the month of sale and the remaining is received 2 months after the month of sale. The total receipts of receivables in January and February are IDR 200,000 and IDR 300,000, respectively. The acceptance plans are: A. The amount of sales are: B. Other receipts are: January IDR 1,400,000 January IDR 200,000 February IDR 1,500,000 February IDR 300,000 March IDR 1,500,000 March IDR 100,000 April IDR 1,600,000 April IDR 200,000 May IDR 1,700,000 May IDR 400,000 June IDR 1,650,000 June IDR 500,000 2. Expediture Plan : A. Purchase of raw materials: B. Purchase of…
- 69) Western Company expects the following credit sales for the first five months of the year: January, $43,000; February, $58,000; March, $48,000; April, $54,000, May $58,000. Experience has shown that payment for the credit sales is received as follows: 60% in the month of sale, 25% in the first month after sale, 10% in the second month after sale, and the remainder is uncollectible. How much cash can Western Company expect to collect in March as a result of credit sales (current and past)? A) $28,800. B) $42,600. C) $48,000. D) $47,600. E) $41,100.the second quarter of 2021: Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements The company predicts that 5 percent of its credit sales will never be collected, 30 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. Purchases Wages, taxes, and expenses Interest In March 2021, credit sales were $190,000 and credit purchases were $130,000. Using this information, complete the following cash budget: (Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required.) Equipment purchases April May June $320,000 $300,000 $360,000 128,000 151,000 176,000 Total cash disbursements 44,000 11,000 80,000 Ending cash balance 11,500 11,000 150,000 $…Graham Potato Company has projected sales of $12,000 in September, $15,000 in October, $22,000 in November, and $18,000 in December. Of the company's sales, 30 percent are paid for by cash and 70 percent are sold on credit. Experience shows that 40 percent of accounts receivable are paid in the month after the sale, while the remaining 60 percent are paid two months after. Determine collections for November and December. Also assume Graham's cash payments for November and December are $18,500 and $11,000, respectively. The beginning cash balance in November is $5,000, which is the desired minimum balance. a. Prepare a cash receipts schedule for November and December. Graham Potato Company Cash Receipts Schedule Sales Credit sales Cash sales One month after sale Two months after sale Total cash receipts September October November December
- Foyert Corporation requires a minimum $7,000 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 $7,000 is used to repay loans at month-end. The cash balance on October 1 is $7,000, and the company has an outstanding loan of $3,000. Budgeted cash receipts (other than for loans received) and budgeted cash payments (other than for loan or interest payments) follow. (please see picture for other info) October November December Cash receipts $ 23,000 $ 17,000 $ 21,000 Cash payments 25,500 16,000 15,000 Prepare a cash budget for October, November, and December.please answer within 30 minutes. Projected Cash Receipts,Romaris Brothers Inc. needs a cash receipts schedule for the months of April, May, and June. Actual Sales: February = $500,000, March = $500,000. Forecast Sales: April =$560,000, May= $610,000, June= $650,000, July= $650,000, Assuming that sales are the only source of cash inflows and that 30% of them are for cash and the remainder are collected evenly over the following 2 months. Prepare a schedule of projected cash receipts for April, May and June. Projected Cash Disbursements Romaris Brothers Inc. needs a cash disbursement schedule for the months of April, May, and June. The following information was collected from financial records: Purchases: Purchases are calculated as 50% of the next month’s sales, 15% of purchases are made in cash, 60% of purchases are paid for 1 month after purchase, and the remaining 25% of purchases are paid for 2 months after purchase. Rent: The firm pays rent of $9,000 per month. Wages and…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. January February March Cash Receipts $ 525,000 400,000 450,000 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. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for Interest on loan All items excluding interest Total cash…
- Fill in the missing cells in the following cash budget. Interpret the values for NCF and the ending cash position. Develop a cash budget for the next two months using the following information: Monthly sales forecasts are $210,000 and $30,000 for the next two months Sales in the current month were $140,000 80 percent of sales are collected in the month of sale, with the remainder collected in the following month Cost of goods sold equal 70 percent o sales The monthly lease payment is $75,000 The cash position at the end of the current month is $70,000 The target cash balance is $40,000Kayak 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. January February March Cash Receipts Cash payments $ 525,000 400,000 450,000 $ 475,000 350,000 525,000 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 Ibans 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. Beginning cash balance Add Cash receipts Total cash available Less Cash payments for Interest on loan Total…Blossom Enterprises had a tough month in May, but June's sales and cash activity are looking strong. Blossom had to borrow $4,000 in May in order to maintain the company's required minimum balance of $5,000. The loan carries an annual interest rate of 6%, with monthly interest payments required. Loan withdrawals, in $1,000 increments, are assumed to be taken out on the first of the month. Loan payments, also in $1,000 increments, reduce the principal on the last day of the month. The June 1 cash balance is $5,590. With budgeted cash receipts of $103,200 and cash disbursements of $101,100 in June, how much of the prior month's loan would Blossom be able to pay off in June, if any? What is Blossom's projected ending cash balance in June? Loan paid off Projected ending cash balance
