The following information is available for Sunland Company for the month of January: expected cash receipts $58,360; expected cash disbursements $66,210; and cash balance on January 1, $11,630. Management wishes to maintain a minimum cash balance of $8,030. Prepare a basic cash budget for the month of January. SUNLAND COMPANY Cash Budget For the Month of January
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- The following information was taken from Pharoah Company cash budget for the month of July: Beginning cash balance $155000 Cash receipts 149000 Cash disbursements 211000 If the company has a policy of maintaining an end of the month cash balance of $155000, the amount the company would have to borrow isHillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 43,000 Accounts receivable 202,400 Inventory 58,200 Buildings and equipment (net) 353,000 Accounts payable $ 86,025 Common stock 500,000 Retained earnings 70,575 $ 656,600 $ 656,600 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 253,000 January $ 388,000 February $ 585,000 March $ 299,000 April $ 196,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The company’s gross margin is…Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Cash $ 64,000 Accounts receivable 219,200 Inventory 61,350 Buildings and equipment (net) 374,000 Accounts payable $ 92,325 Common stock 500,000 Retained earnings 126,225 $ 718,550 $ 718,550 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 274,000 January $ 409,000 February $ 606,000 March $ 321,000 April $ 217,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The company’s gross margin is…
- Crane Company expects to have a cash balance of $60,350 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January $85,350, February $160,350. 2. Payments to suppliers: January $54,350, February $89,350. 3. Wages: January $30,490, February $40,490. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,490, February $24,490. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,490, February $20,490. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,490 in cash. Crane Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $34,350. Prepare a cash budget for January and February.The following information was taken from Bonita Industries's cash budget for the month of July: Beginning cash balance $440000 Cash receipts 404000 Cash disbursements 558000 If the company's policy is to maintain a minimum end of the month cash balance of $430000, the amount the company would have to borrow in July is $286000. $144000. $10000. $26000.Western Company is preparing a cash budget for June. The company has $10,400 in cash at the beginning of June and anticipates $31,600 in cash receipts and $37,700 in cash payments 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 has no loans outstanding. To maintain the $10,000 required balance, during June the company must:
- Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter $ 310,000 $ 438,038 $365,008 $ 335,000 Required: Prepare the company's cash budget for the upcoming fiscal year. Note: Repayments and interest should be indicated by a minus sign. The company's beginning cash balance for the upcoming fiscal year will be $25,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Beginning cash balance Total cash receipts Total cash available Total cash…Prepare a budgeted balance sheet at March 31 using the following information from Zimmer Company. a. The cash budget for March shows an ending loan balance of $20,000 and an ending cash balance of $75,000. b. The sales budget for March shows sales of $140,000. Accounts receivable at the end of March are budgeted to be 60% of March sales. c. The merchandise purchases budget shows that $91,000 in merchandise will be purchased on credit in March. Purchases on credit are paid 100% in the month following the purchase. d. Ending merchandise inventory for March is budgeted to be 800 units at a cost of $35 each. e. Income taxes payable of $28,000 are budgeted at the end of March. f. Accounting records at the end of March show budgeted equipment of $82,000 with accumulated depreciation of $35,000. g. Common stock of $35,000 and retained earnings of $60,000 are budgeted at the end of March. ZIMMER COMPANY Budgeted Balance Sheet As of March 31 $ 0 0 0Mass Company has $9,500 in cash on hand on January 1 and has collected the following budget data: E (Click the icon to view the budget data) Assume Mass has cash payments for selling and administrative expenses including salaries of $60,000 plus commissions of 1% of sales, all paid in the month of sale. The company requires a minimum cash balance of $9,000 Prepare a cash budget for January and February. Will Mass need to borrow cash by the end of February? Begin by preparing the cash budget for January, then prepare the cash budget for February (Complete all input fields. Enter a "0" for any zero balances.) Mass Company Cash Budget Two Months Ended January 31 and February 28 January Beginning cash balance Cash receipts Data Table Cash available Cash payments: Purchases of merchandise inventory January February Selling and administrative expenses Sales 1.340,000 $ 690,000 Total cash payments Cash receipts from customers 851 420 871,100 Ending cash balance before financing Cash payments…
- Use the following information to prepare a cash budget for the month ended on March 31 for Gado Company. The budget should show expected cash receipts and cash payments for the month of March and the balance expected on March 31. a. Beginning cash balance on March 1, $72,000. b. Cash receipts from sales, $300,000. c. Budgeted cash payments for direct materials, $140,000. d. Budgeted cash payments for direct labor, $80,000. e. Other budgeted cash expenses, $45,000. f. Cash repayment of bank loan, $20,000.The treasurer of U Co. has accumulated the budget information presented in the table for the months of March and April pertaining to cash payments. Forty percent of the merchandise costs are expected to be paid in the month they are incurred and the remaining sixty percent in the following month. All of the operating expenses are paid for by cash in the month they are incurred. The accounts payable balance on March 1 is $60,000. What is the amount to include in the Cash Budget for the month of April for the Merchandise Costs (which does include the balance from March + Cost for April)? MARCH APRIL Merchandise costs $120,000 $132,000 Operating expenses 100,000 110,000Hillyard Company, an office supplies specialty store, prepares its master budget on a quarterly basis. The following data have been assembled to assist in preparing the master budget for the first quarter: As of December 31 (the end of the prior quarter), the company’s general ledger showed the following account balances: Debits Credits Cash $ 44,000 Accounts receivable 203,200 Inventory 58,350 Buildings and equipment (net) 354,000 Accounts payable $ 86,325 Common stock 500,000 Retained earnings 73,225 $ 659,550 $ 659,550 Actual sales for December and budgeted sales for the next four months are as follows: December(actual) $ 254,000 January $ 389,000 February $ 586,000 March $ 300,000 April $ 197,000 Sales are 20% for cash and 80% on credit. All payments on credit sales are collected in the month following sale. The accounts receivable at December 31 are a result of December credit sales. The…