**Operating Expenses Analysis for Rundle, a Retail Company Specializing in Men's Hats**Rundle is a retail company specializing in men's hats. Below is a detailed analysis of its expected operating expenses for the months of July, August, and September. All expenses are paid when incurred, except sales commissions and utilities, which are paid in the month following their incurrence. July is the first month of operations, therefore there are no beginning account balances.### Operating Expenses Overview- **Salary Expense** - July: $17,780 - August: $17,780 - September: $17,780- **Sales Commissions (4% of Sales)** - July: $1,300 - August: $1,300 - September: $1,300- **Supplies Expense** - July: $2,980 - August: $340 - September: $340- **Utilities** - July: $480 - August: $1,480 - September: $1,480- **Depreciation on Store Equipment** - July: $2,980 - August: $2,980 - September: $2,980- **Rent** - July: $6,980 - August: $6,980 - September: $6,980- **Miscellaneous** - July: $680 - August: $680 - September: $680- **Total S&A Expenses Before Interest** - July: $32,260 - August: $32,290 - September: $32,320### Requirements1. **Prepare a schedule of cash payments for selling and administrative expenses.**2. **Determine the amount of utilities payable as of September 30.**3. **Determine the amount of sales commissions payable as of September 30.**### Schedule of Cash Payments for Selling and Administrative ExpensesThe provided table has three columns indicating the months July, August, and September, with rows corresponding to each expense category. The students are expected to fill out the schedule based on the timing of expense payments.### Additional Details- **Graphical Element Explanation:** This document includes a table to be filled in by students for understanding cash payments over the three-month period.- All rows and cells currently contain empty spaces, signifying

Sales commission is a fixed percentage of total sales which is paid to the sales executive upon…

Rundle is a retail company specializing in men's hats. Its budget director prepared the list of expected operating expenses that follows. All items are paid when incurred except sales commissions and utilities, which are paid in the month following their incurrence. July is the first month of operations, so there are no beginning account balances. Salary expense Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous Total S&A expenses before interest Req A July $ 17,700 3,300 280 1,400 2,900 6,000 680 $ 32,260 Total payments for S&A expenses Complete this question by entering your answers in the tabs below. $ August $ 17,700 3,300 310 Required a. Prepare a schedule of cash payments for selling and administrative expenses. b. Determine the amount of utilities payable as of September 30. c. Determine the amount of sales commissions payable as of September 30. Req B and C Prepare a schedule of cash payments for selling and administrative expenses. Schedule of Cash Payments for Selling and Admin Expenses July 1,400 2,900 6,000 $ 32,290 0 $ August September September $ 17,700 3,300 340 0 $ 1,400 2,900 6,000 680 $ 32,320 0 Req B and C >

Rundle is a retail company specializing in men's hats. Its budget director prepared the list of expected operating expenses that follows. All items are paid when incurred except sales commissions and utilities, which are paid in the month following their incurrence. July is the first month of operations, so there are no beginning account balances. Salary expense Sales commissions (4 percent of sales) Supplies expense Utilities Depreciation on store equipment Rent Miscellaneous Total S&A expenses before interest Req A July $ 17,700 3,300 280 1,400 2,900 6,000 680 $ 32,260 Total payments for S&A expenses Complete this question by entering your answers in the tabs below. $ August $ 17,700 3,300 310 Required a. Prepare a schedule of cash payments for selling and administrative expenses. b. Determine the amount of utilities payable as of September 30. c. Determine the amount of sales commissions payable as of September 30. Req B and C Prepare a schedule of cash payments for selling and administrative expenses. Schedule of Cash Payments for Selling and Admin Expenses July 1,400 2,900 6,000 $ 32,290 0 $ August September September $ 17,700 3,300 340 0 $ 1,400 2,900 6,000 680 $ 32,320 0 Req B and C >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

J.Banera Company has budgeted its operations for March. No change in the inventory level during the month is planned. Selected data based on estimated amounts are as follows: $(120,000) 48,000 42,000 72,000 18,000 12,000 Net loss Increase in accounts payable Deprèciation expense Decrease in gross amounts of trade account receivables Purchase of equipment on 90-day credit terms Provision for estimated warranty liability What is the expected change in the cash position during March? Your response must be in the form like this (i.e. 69000 increase).
Paper Corporation expects to have the sales and expenses shown for August, September,andOctober. The company expects to receive 55% of collections for sales in the month the saleoccurs, 35% in the following month, and the remainder to be uncollectible. The companypolicy for manufacturing expenses requires that 70% of the expenses be paid in the monthincurred and 30% in the following month. All other expenses are paid in the month incurred.The company also earns and collects $5,000 of rental revenue eachmonth. At the end of thequarter, Paper Corporation must make an estimated tax payment, which the companyestimates will be 7% of the quarter’s total sales. Prepare the cash budget for the three monthsif cash as of August 1, 2015, totaled $51,500. The company requires a $50,000 minimum cashbalance. July August September October Sales $34,000 $39,000 $46,000 $40,000 Manufacturing costs 15,200 16,800 20,100 19,900 Selling expenses 10,000 10,200 14,500 16,500 Administrative…
Please help me with show all calculation thanku
All sales are made on credit terms of net 30 days and are collected the following month and no bad debts are anticipated. The accounts receivable on the balance sheet at the end of September thus will be collected in October. The October sales will be collected in November, and so on. Inventory on hand represents a minimum operating level (or “safety” stock), which the company intends to maintain. Cost of goods sold average 80 percent of sales. Inventory is purchased in the month of sale and paid for in cash. Other cash expenses average 7 percent of sales. Depreciation is $10,000 per month. Assume taxes are paid monthly and the effective income tax rate is 40 percent for planning purposes. The annual interest rate on outstanding long-term debt and bank loans (notes payable) is 12%. There are no capital expenditures planned during the period, and no dividends will be paid. The company’s desired end-of-month cash balance is $80,000. The president hopes to meet any cash shortages during…
Hancock Ltd which carries no month end inventory, has produced the following budgeted Statements of Profit or Loss. July August September October Sales 10,000 12,000 8,000 9,000 Purchases 4,000 4,800 3,200 3,600 Gross profit 6,000 7,200 4,800 5,400 Operating costs 4,000 4,000 4,000 4,000 Net profit 2,000 3,200 800 1,400 If the cash balance on 1st September is £3,000 and assuming that all customers take one month’s credit, that Hancock Ltd takes two months credit on purchases and that operating costs are paid immediately, what will be the expected cash balance at the end of October? £14,200 £6,200 £7,200 £8,200
Required: Prepare Shadee's budgeted income statement for the months of May and June. Note: Do not round your intermediate calculations. Round your answers to 2 decimal places. Budgeted Gross Margin SHADEE CORPORATION Budgeted Income Statement Budgeted Net Operating Income May June
Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. Prepare a cash budget for January and February in columnar form. please dont provide answer in an image format thnku
Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $25,600. The budgeted expenses for the next three months are as follows: January February March Salaries $58,900 $71,700 $79,400 Utilities 4,900 5,400 6,400 Other operating expenses 44,800 48,800 53,800 Total $108,600 $125,900 $139,600 Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.
Schedule of cash payments for a service company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January-March). The Accrued Expenses Payable balance on January 1 is $26,200. The budgeted expenses for the next three months are as follows: January February March Salaries $60,300 $73,400 $81,200 Utilities 5,000 5,500 6,600 Other operating expenses 46,400 50,600 $5,700 Total $111,700 $129,500 $143,500 Other operating expenses include $3,300 of monthly depreciation expense and $800 of monthly insurance expense that was prepaid for the year on May 1 of the previous year of the remaining expenses, 80% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December. Prepare a schedule of cash payments for operations for January, February, and March. EastGate Physical Therapy Inc. Schedule of Cash Payments for…
Stuart Company sells lamps and other lighting fixtures. The purchasing department manager prepared the following inventory purchases budget. Stuart's policy is to maintain an ending inventory balance equal to 15 percent of the following month's cost of sold. April's budgeted cost of goods sold is $80,000. Required a. Complete the inventory purchases budget by filling in the missing amounts. b. Determine the amount of cost of goods sold the company will report on its first quarter pro forma income statement. c. Determine the amount of ending inventory the company will report on its pro forma balance sheet at the end of the first quar Complete this question by entering your answers in the tabs below. Req A Req B and C Complete the inventory purchases budget by filling in the missing amounts. Inventory Purchases Budget Budgeted cost of goods sold Plus: Desired ending inventory Inventory needed Less: Beginning inventory Required purchases (on account) January February March $ 57,000 $…
Please don't give image format
Finch is a retail company specializing in men's hats. Its budget director prepared the list of expected operating expenses that follows. All items are paid when incurred except sales commissions and utilities, which are paid in the month following their incurrence. July is the first month of operations, so there are no beginning account balances. July $18,400 3,300 August $18,400 3,300 September $18,400 3,300 Salary expense Sales commissions (4 percent of sales) Supplies expense Utilities 370 400 430 2,200 2,200 2,200 4,000 4,000 6,700 Depreciation on store equipment 4,000 6,700 Rent 6,700 Miscellaneous 610 610 610 Total S&A expenses before interest $35,580 $35,610 $35,640 Required a. Prepare a schedule of cash payments for selling and administrative expenses. b. Determine the amount of utilities payable as of September 30. c. Determine the amount of sales commissions payable as of September 30. Complete this question by entering your answers in the tabs below. Req A Req B and C…