Problem 1. Jane McDonald, a financial analyst for Carroll Company, has prepared the following sales and cashdisbursement estimates for the period February to June of the current year.CashdisbursementsMonthSalesFebruary$500$400March600300April400600May200500June200200McDonald notes that historically, 30% of sales have been for cash. Of credit sales, 70% are collected 1 month after thesale, and the remaining 30% are collected 2 months after the sale. The firm wishes to maintain a minimum endingbalance in its cash account of $25. Balances above this amount would be invested in short-term government securities(marketable securities), whereas any deficits would be financed through short-term bank borrowing (notes payable).The beginning cash balance at April 1 is $115.a. Prepare cash budgets for April, May, and June.b.How much financing, if any, at a maximum would Carroll Company require to meet its obligations during this3-month period?c. A pro forma balance sheet dated at the end of June is to be prepared from the information presented. Givethe size of each of the following: cash, notes payable, marketable securities, and accounts receivable.

A cash budget is a budget prepared to know the cash receipts, payments, and ending cash balance for…

Answered: Problem 1. Jane McDonald, a financial…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 9EB: Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25%...

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Fitbands estimated sales are: What are the balances in accounts receivable for January, February, and March if 65% of sales is collected in the month of sale, 25% is collected the month after the sale, and 10% is second month after the sale?
Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
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1.A financial analyst for Carroll Company has prepared the following sales and cash disbursement estimates for the period February-June of the current year. Cash disbursements Month Sales February $500 $400 March 600 300 April May 400 600 200 500 June 200 200 Manager noted that historically, 30% of sales have been for cash. Of credit sales, 70% are collected 1 month after the sale, and the remaining 30% are collected 2 months after the sale. The firm wishes to maintain a minimum ending balance in its cash account of $25. Balances above this amount would be invested in short- term government securities (marketable securities), whereas any deficits would be financed through short-term bank borrowing (notes payable). The beginning cash balance at April 1 is $115. a. Prepare a cash budget for April, May, and June. b. How much financing, if any, at a maximum would Carroll Company require to meet its obligations during this 3-month period?
Fernando Company developed the following data for the month of August:1. August 1 cash balance P123,000.2. Cash sales in August P800,000.3. Credit sales for August are P300,000; for July P400,000; and for June P400,000. 70% of credit sales are collected in the month of sale, 15% in thefollowing month, and 10% in the second month following the sale. 4. Purchases for July were P500,000 and for August are P400,000. One-fourth of purchases are paid in the month of purchase and the remaining three-quarters in the following month. 5. August salaries are P314,000, utilities are P32,200, and depreciation on the building and equipment is P100,000. Required:1. Anticipated cash receipts from accounts receivable in August.
Jane MacDonald, Carroll Financial Analyst, prepared the following sales and cash disbursement estimates for the February-June period of this year. Month Sales Cash Disbursements February 500 400 March 600 300 April 400 600 May 200 500 June 200 200 MacDonald indicates that 30% of sales have been, historically, in cash. 70% of credit sales are collected one month after the sale, and the remaining 30% are collected two months after the sale. The company wants to keep a minimum final balance in its $ 25 cash account. Balances in excess of this amount will be invested in short-term government securities (marketable securities), while any deficits will be financed through short-term bank borrowing (payable securities). The cash balance initially on April 1 is $ 115. Prepare cash budgets for April, May, and June. How much, if any, of the maximum funding would Carroll require to meet its obligations within this three-month period?…
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