Sarasota Company budgeted the following information for 2022: Budgeted purchases of merchandise ● May $105,500 June $110,500 Cost of goods sold is 40% of sales. Accounts payable is used only for merchandise inventory acquisitions. Sarasota purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. ● Selling and administrative expenses are budgeted at $32,000 for May and are expected to increase 5% per month. These expenses are paid during the month when incurred. In addition, depreciation is budgeted at $10,000 per month. Income taxes are $39,100 for July and are paid in the month incurred. Cash Disbursements Compute the amount of budgeted cash disbursements for July. $ July $101,500

Sarasota Company budgeted the following information for 2022: Budgeted purchases of merchandise ● May $105,500 June $110,500 Cost of goods sold is 40% of sales. Accounts payable is used only for merchandise inventory acquisitions. Sarasota purchases and pays for merchandise 60% in the month of acquisition and 40% in the following month. ● Selling and administrative expenses are budgeted at $32,000 for May and are expected to increase 5% per month. These expenses are paid during the month when incurred. In addition, depreciation is budgeted at $10,000 per month. Income taxes are $39,100 for July and are paid in the month incurred. Cash Disbursements Compute the amount of budgeted cash disbursements for July. $ July $101,500

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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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
Anderson Manufacturing Inc., aims to prepare a cash budget for September 2020. The cash balance at the beginning of September is $9,000. The actual sales for July and August and expected sales for September are: Information Cah Sales Sales on Accoun 0000 60,00 Tetal Sales July (5 Augut (5) Septemberis 14,300 Sales on account are collected over a three-month period in the following ratio: 10% in the month of sale, 70% in the month following sale 18% in the second month following sale 2% remaining are uncollectible. Additional information includes: (a) Purchases of inventory will total S 50,000 for September; 20% will be paid for in September. Accounts payable from August's inventory purchases is $ 32,000, all of which will be paid in September. (b) Selling and administrative expenses are budgeted at $ 26,000 for September; of which $ 8,000 is for depreciation. (c) Equipment costing $ 36,000 will be purchased for cash during September, and other miscellancous cash expenses of $ 6,000…
Griffith Company has budgeted purchases of inventory for December of $105,000. Expected beginning inventory on December 1 and ending inventory on December 31 are $120,000 and $129,000, respectively. If the cost of goods sold averages 75% of sales, what are budgeted sales for December? A. $114,000 B. $152,000 C. $120,000 D. $128,000
In May 2022, the budget committee of Crane Stores assembles the following data in preparation of budgeted merchandise purchases for the month of June. 1. 2. 3. 4. (a) Expected sales: June $400,000, July $480,000. Cost of goods sold is expected to be 75% of sales. Desired ending merchandise inventory is 30% of the following (next) month's cost of goods sold. The beginning inventory at June 1 will be the desired amount. Compute the budgeted merchandise purchases for June. CRANE STORES Merchandise Purchases Budget $ $
Indigo Company budgeted the following information for 2022: Budgeted purchases of merchandise ● ● May $105,000 Cost of goods sold is 40% of sales. Accounts payable is used only for merchandise inventory acquisitions. • Indigo purchases and pays for merchandise 70% in the month of acquisition and 30% in the following month. Selling and administrative expenses are budgeted at $36,000 for May and are expected to increase 5% per month. These expenses are paid during the month when incurred. In addition, depreciation is budgeted at $10,000 per month. Income taxes are $39,000 for July and are paid in the month incurred. Cash Disbursements June $ $110,000 Compute the amount of budgeted cash disbursements for July. July $103,000
Spana Company has the following data: Total Monthly Purchasing Budget MONTH Budgeted purchases January 220,000 february 185,000 march 240,000 april 155,000 may 180,000 Purchases are paid as follows: * 10% in the month of purchase. * 60% one month after purchase * 30% two months after purchase Required: 1. Develop a schedule of cash disbursements for purchases for March, April and May.
Riverbed Inc. provided the following information: April Projected merchandise purchases $92,500 Calculate budgeted cash disbursements for May. May $82,000 Total budgeted cash disbursements $ June Riverbed 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 $34,500 per month of which depreciation is $3,400 of this amount. Riverbed pays operating expenses in the month incurred. Riverbed makes loan payments of $5,000 per month of which $550 is interest and the remainder is principal. $69,000
The Foress Antique Mall budgeted credit sales in the first quarter of 2021 to be as follows: January February March $188,800 200,600 214,000 Credit sales in December 2020 are expected to be $236,000. The company expects to collect 70 percent of a month's sales in the month of sale and 30 percent in the following month. Estimate cash receipts for each month of the first quarter of 2021. Collection of credit sales Collection of December sales $ Collection of January sales Collection of February sales Collection of March sales $ January $ $ February $ $ March Ac Go
Carla Vistas, Inc. provided the following budgeted information for March through July: March April May June July Projected sales $100400 $118080 $110400 $126720 $135760 Projected merchandise purchases $78720 $88720 $72320 $63920 $70080 Inventory at end of month $11520 $13040 $10880 $11920 $13760 Carla Vistas estimates that it will collect 30% of its sales in the month of sale and 70% in the month after the sale. General operating expenses are budgeted to be $29760 per month of which depreciation is $29760 of this amount. Carla Vista pays operating expenses in the month incurred. The income tax rate is 30%. How much is budgeted net income for May? a. $8080. b. $6160. c. $4312. d. $5858.
Coronado Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $331,200 $368,000 Direct materials purchases 110,400 115,000 Direct labor 82,800 92,000 Manufacturing overhead 64,400 69,000 Selling and administrative expenses 72,680 78,200 All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $920 of depreciation per month.Other data: 1. Credit sales: November 2021, $230,000; December 2021, $294,400. 2. Purchases of direct materials: December 2021, $92,000. 3. Other…