The WRT Corporation makes collections on sales according to the following schedule: 1. 30% in the month of sale. 2. 64% in the month following sale. 3.6% in the second month following sale. The following sales have been are expected: Expected Sales April $130,000 May $140,000 June $130,000 Budgeted cash collections in June should be budgeted to be: a. $130,000 b. $130,780 c. $136,400 d. $128,600
Q: Solve these one
A: Step 1: Define Property, Plant & EquipmentThe Property, plant, and equipment are the fixed asset…
Q: General Accounting: 2.3 (7 Marks)
A: Step 1: Supplies Expenses can be calculated by subtracting the Supplies remaining on December 31…
Q: P Company purchased 80% of the outstanding common stock of H Company on January 2, 2020, for…
A: Consolidated Assets include;Current Assets:P Current Assets+H Current Assets−Intercompany…
Q: GreenLeaf Grocers has monthly rent of $5,000, salaries of $12,000, and utilities of $3,000. If their…
A: Explanation of Contribution Margin Ratio: Contribution margin ratio is the percentage of each sales…
Q: On January 1, 2023, Oriole Corp. lent $44,000 to its CEO, interest-free. The loan is repayable in…
A: The first step is to calculate the present value of the loan. The present value is the amount that a…
Q: Give Answer
A: Explanation of Wages: Wages represent the income Ron earned from his job, in this case from a union…
Q: Give true answer this accounting question
A: Step 1:- Introduction to the PricingThe pricing of a good or service is one of the decisions to be…
Q: Balance required in allowance for expected credit losses account
A: Explanation: The balance required in allowance for expected credit losses account can be calculated…
Q: Surveys of employee satisfaction is a potential measure of the Select one: a.Customer…
A: Explanation of the AnswerEmployee satisfaction surveys are a measure of the Learning and Growth…
Q: Give true answer the accounting question
A: Step 1:- Introduction to the Variable CostingUnder variable costing, the fixed manufacturing…
Q: Solve general accounting question do fast
A: Step 1: Define Gross SalesIn accounting, the gross sale is an important account. It is a measure of…
Q: Need answer
A: Step 1: Define Accepting Special OrderIn accepting special orders, the company must consider if…
Q: Kindly help me
A: Steps to determine the annual credit sales:Step 1: By using the average collection period of 45…
Q: Expert ans this
A: Explanation of Retained Earnings: Retained earnings represent the cumulative amount of net income…
Q: General Accounting
A: To determine the premium for growth on Amax Inc. stock based on the given information, we can follow…
Q: Please give correct answer
A: Given InformationOriginal Cost of Office Furniture: $16,500Accumulated Depreciation: $14,000Cash…
Q: Need answer not use ai
A: Step 1: Define Variable CostingAccording to the accounting standards, the manufacturing overheads…
Q: correct solutiuons needed
A: a. The IASB deals with issues caused by the lack of uniform accounting principles.This statement is…
Q: Use the following information from xyz company's balance sheet:
A: Explanation: Current ratio is a liquidity indicator that helps an entity to estimate whether the…
Q: The following gives information about the proportion of a sample that agree with a certain…
A: Steps to make confidence interval in StatKeyStep 1: Go to StatKey Step 2: Under Bootstrap Confidence…
Q: Concord Company lends Ivanhoe Company $10700 on April 1, accepting a four-month, 12% interest note.…
A: Step 1: Calculate the total interest revenue to be earned for 4 months.= principal x interest rate x…
Q: Accounting MCQ
A: Explanation of Hedge AccountingHedge accounting is a financial reporting method that allows…
Q: General Accounting
A: Step 1: Define DebtDebt refers to a company's total liabilities that are classified into short-term…
Q: Question: In calculating diluted EPS, convertible preferred shares are? a) Always included b) Never…
A: The question pertains to Diluted EPS. EPS or Earnings per Share is a measure of a company's…
Q: 3c
A: Step 1:Bonds payable (Dr. 400,000): This removes the bond liability from the subsidiary's…
Q: 2 Fill in the blank: ________ is an organization's ability to achieve low costs relative to…
A: Detailed explanation: Cost leadership is a strategy that firms use to achieve an aggressive gain via…
Q: Sales?
A: Explanation of Net Sales: Net sales represents the total revenue generated from sales after…
Q: Zorro Inc. has the following cash register data for December 31: Cash register total for cash…
A: The first step is to identify the difference between the cash register total for cash sales and the…
Q: or A company is considering whether to classify certain expenses as operating expenses non-operating…
A: Explanation of Operating Expenses:Operating expenses refer to the costs incurred in the day-to-day…
Q: Detail of Certain Balance Sheet Accounts Current receivables September 30, 2023 October 1, 2022…
A: Here's a detailed breakdown of the balance sheet accounts you provided for current receivables and…
Q: Mc Graw Hill סוי M Question 9 - Week 11 - Homework #7 (100 points) - Connect Week 11 - Homework #7…
A: Step 1: Initial entry Debit Prepaid rent to increase its balance by $12,000.Debit Cash to decrease…
Q: For the past year, LP Gas, Inc.
A: Using the given cash flow data, the question asks you to determine LP Gas, Inc.'s net new…
Q: Provide answer this financial accounting
A: Step 1: Define Future ValueThe future value for any loan amount is the loan amount plus the interest…
Q: 66
A: In summary:Defined benefit plans require specific accounting treatments under standards like IAS 19…
Q: Charlotte Engineering had net income of $475,000 for the year. It declared $40,000 in preferred…
A: The problem requires the determination of the weighted average common stocks. Weighted average…
Q: A manufactured product has the following information for June. Direct materials Direct labor…
A: Step 1: Direct materials price variance Direct materials price variance = (Actual quantity x Actual…
Q: Need answer the general accounting question
A: Step 1: Standard costs Standard price = $8 per kilogramStandard quantity per unit = 0.65 kilogram…
Q: 4 The number of complaints about the company's product is a potential measure of the Select…
A: The number of complaints about the company's product is a potential measure of the: b. customer…
Q: Amount?
A: Explanation of Accounts Receivable:Accounts Receivable refers to the amount of money owed to a…
Q: Business 123 Introduction to Investments May I please have an expert explain the various types of…
A: 6. Yield Spread The Yield Spread compares the yield of one bond to another, often to a benchmark…
Q: Question: 35 Boston Products has a production budget as follows: May, 19,000 units; June, 22,000…
A: Explanation of Production Units: Production units represent the total number of units that a company…
Q: Solve this general accounting question do fast
A: Step 1: Define Variable ExpenseVariable expenses which are also known as variable cost are total…
Q: Give answer to the general Accounting Problem
A: Explanation of Sales Efficiency: Sales Efficiency measures how many units a salesperson can sell per…
Q: Concord Company uses the gross profit method to estimate inventory for monthly reporting purposes.…
A: Net Purchases is calculated by subtracting the Purchase Discounts from the Gross Purchases and…
Q: How much in Common Stock?
A: Let us use the basic accounting equation, Assets = Liabilities + Equity.Assets = Liabilities +…
Q: Want answer
A: Functional currency is the currency of the primary economic environment in which an entity operates.…
Q: Hi give Answerr
A: Step 1: To determine the relevant unit cost for this make-or-buy decision, we need to identify the…
Q: Help
A: In pension accounting, actuarial gains and losses are: a) Recognized in other comprehensive income.…
Q: Need help
A: To find the premium for growth on Amax Inc. stock based on the provided information, we can follow…
Q: On December 31, 2024, Flint Hills received a bill for $210 for utilities incurred during December.…
A: In accrual accounting, expenses are recorded when they are incurred, not when they are paid. This is…
Need help with this accounting question please solve
Step by step
Solved in 2 steps
- Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase and 60% in the month following the purchase. If purchases are budgeted to be 40,000 for August and 36,000 for September, what are the budgeted cash payments for purchases on account for September?Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent 50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were sold in January for $10,000 and $4,500 in May. Dividends of $4,500 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the year
- Cash budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent 12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of June 1 include cash of 42,000, marketable securities of 25,000, and accounts receivable of 198,000 (150,000 from May sales and 48,000 from April sales). Sales on account in April and May were 120,000 and 150,000, respectively. Current liabilities as of June 1 include 13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 24,000 will be made in July. Mercury Shoes regular quarterly dividend of 15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of 40,000. Instructions Prepare a monthly cash budget and supporting schedules for June, July, and August. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information: a. Of all sales, 40% are cash sales. b. Of credit sales, 45% are collected within the month of sale. Half of the credit sales collected within the month receive a 2% cash discount (for accounts paid within 10 days). Thirty percent of credit sales are collected in the following month; remaining credit sales are collected the month thereafter. There are virtually no bad debts. c. Sales for the second two quarters of the year follow. (Note: The first 3 months are actual sales, and the last 3 months are estimated sales.) d. The company sells all that it produces each month. The cost of raw materials equals 26% of each sales dollar. The company requires a monthly ending inventory of raw materials equal to the coming months production requirements. Of raw materials purchases, 50% is paid for in the month of purchase. The remaining 50% is paid for in the following month. e. Wages total 105,000 each month and are paid in the month incurred. f. Budgeted monthly operating expenses total 376,000, of which 45,000 is depreciation and 6,000 is expiration of prepaid insurance (the annual premium of 72,000 is paid on January 1). g. Dividends of 130,000, declared on June 30, will be paid on July 15. h. Old equipment will be sold for 25,200 on July 4. i. On July 13, new equipment will be purchased for 173,000. j. The company maintains a minimum cash balance of 20,000. k. The cash balance on July 1 is 27,000. Required: Prepare a cash budget for July. Give a supporting schedule that details the cash collections from sales.The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
- Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2019 and 2020: Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2019. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal, and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.
- What is the amount of budgeted cash payments if purchases are budgeted for $420,000 and the beginning and ending balances of accounts payable are $95,000 and $92,000, respectively?Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.What is the amount of budgeted cash payments if purchases are budgeted for $190,500 and the beginning and ending balances of accounts payable are $21,000 and $25,000, respectively?
