ugay Industries, a defense contractor, is developing a cash budget for October, November,andDecember.Jungaya'ssalesinAugustandSeptemberwerePHP100,000 and PHP200,000 respectively. Sales of PHP400,000, PHP300,000, and PHP200,000 have been forecast for October, November, and Decemberrespectively. Historically, 20% of the fim's sales have been for cash, 50% have generated accounts receivable collected after 1 month, and the remaining 30% have generated accounts receivable collected after 2 months. In December, the firm will receive a PHP30,000 dividend from stock in a subsidiary. Required: Prepare the cash receipts sectionof the cashbudget.

ugay Industries, a defense contractor, is developing a cash budget for October, November,andDecember.Jungaya'ssalesinAugustandSeptemberwerePHP100,000 and PHP200,000 respectively. Sales of PHP400,000, PHP300,000, and PHP200,000 have been forecast for October, November, and Decemberrespectively. Historically, 20% of the fim's sales have been for cash, 50% have generated accounts receivable collected after 1 month, and the remaining 30% have generated accounts receivable collected after 2 months. In December, the firm will receive a PHP30,000 dividend from stock in a subsidiary. Required: Prepare the cash receipts sectionof the cashbudget.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted…

A: The cash receipts budget is prepared to estimate the cash collection during the period. The cash…

Q: In preparation for the quarterly cash budget, the following revenue and cost information have been…

Q: Coronado Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as…

A: The Schedule of expected collections from customers shows the cash collected from customers in each…

Q: Hugo Medical Supply has applied for a loan. Pacific Commerce Bank has requested a budgeted balance…

A: As per the Honor code of Bartleby we are bound to give the answer of the first three sub parts only,…

Q: Delta Company has required you to prepare a cash budget on the basis of following information: i.…

A: Cash Budget: Cash Flow of business over a specific period of time is estimated by cash Budget .…

Q: Sullivan, Inc. sells tire rims. Its sales budget for the nine months ended September 30, 2024, and…

A: The first costs incurred to manufacture or produce the goods are called cost of goods sold. The…

Q: Cedar Company has forecast purchases to be $338,000 in June, $377,000 in July, $319,000 in August,…

A: A cash budget is a written plan that projects a company's cash flows for specific timeframes, like…

Q: Tomo, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep…

A: Budget is the estimated figures of all revenue and expenses which are prepared for performance…

Q: Requirements: 1. Prepare the budgeted balance sheet for FairviewMedical Supply at April 30. Show…

A: Before we prepare the budgeted balance sheet for "FM S" as at April 30th, we need to find budgeted…

Q: ty Company expects sales for the first three months of next year to be $205,000, $240,000 and…

A: Schedule of cash collection includes collection of sales based on their % of collection in…

Q: Coronado Industries expects to purchase $220000 of materials in July and $250000 of materials in…

A: The cash budget is prepared by the management to estimate future cash availability of cash. It…

Q: Complete the following cash budget for the company.

A: An estimate of a company's cash flows for a given time frame is called a cash budget.. This might…

Q: DL Inc. has the following budgeted sales: January $145000, February $280000, and March $150000. 40%…

A: Collections during March will be: Cash Sales of March, 50% of Credit sales of March, 50% of Credit…

Q: Wellness Products, needs a cash budget for September. The following information is available: 1. The…

A: A Cash Budget depicts the cash receipts and cash payments for the period. It helps the company to…

Q: Orange Company has sales of $50,000 in March and $60,000 in April. Forecast sales for May, June, and…

A: The cash budget is prepared by estimating the cash inflows and cash outflows for the period and…

Q: Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales…

A: The money from one bank account to another is known as a disbursement. A disbursement is a monetary…

Q: Schuepfer Incorporated bases its selling and administrative expense budget on budgeted unit sales.…

A: The expenditures associated with running a firm are referred to as operating expenses, often known…

Q: Rishi Sunak Manufacturing Pte. Ltd. is preparing its budget for next year. The company estimates…

A: Raw materials of December = $240,000 Raw materials of November = $280,000 Raw materials of October…

Q: Garden Depot Is a retaller that provided the following budgeted cash flows for next year. 1st…

A: Budgeting is a method of estimating expected future outcomes based on past events. Budgeting…

Q: Kingbird needs to calculate the company’s expected cash receipts for the upcoming month to determine…

A: Cash receipts during a period mean the receipts that are estimated to be collected by the during a…

Q: A company that manufactures a single product has provided the following budgeted standard cost and…

A: The Numerical has covered the Concept of Break-Even Point in the Break-even analysis. The Break-even…

Q: Coronado Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Concept explainers

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.

Question

ougay Industries, a defense contractor. is developing a cash budget for October,
November,andDecember.Jungaya'ssalesinAugustandSeptemberwerePHP100,000 and
PHP200,000 respectively. Sales of PHP400,000, PHP300,000, and PHP200,000 have
been forecast for October, November, and Decemberrespectively.
Historically, 20% of the fim's sales have been for cash, 50% have generated accounts
receivable collected after 1 month, and the remaining 30% have generated accounts
receivable collected after 2 months. In December, the firm will receive a PHP30,000
dividend from stock in a subsidiary.
• Required: Prepare the cash receipts sectionof the cashbudget.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Sawera Coporation reported sales of RM350,000 in June, RM380,000 in July, and RM390,000 in August. The forecasts for September, October and November are RM385,000, RM418,000 and RM429,000, respectively. The initial cash balance on September 1 is RM150,000, and a minimum of RM8,000 should be kept. Use the given information to compile a cash budget for the months of September, October and November. a) Sawera predicts that 5% of its sales will never be collected, 30% of its sales will be cash sales, and the remaining 65% will be collected in the following month. are receiveble b) c) d) e) f) g) h) i) cash dis Sawera receives other monthly income of RM3,000. other cash receipt The actual or expected purchases are RM150,000, RM120,000 and RM115,000 for the months of September to November, respectively, and 50%] are paid in cash while the remainder is paid in the following month. The purchases for August were RM120,000.- Nov Monthly rent is RM3,500 chargeable only in October and November.…
Dane Inc. has forecast purchases on account to be $465,000 in March, 555,000 in April, $630,000 in May, and $735.000 in June Severty percent f purchases are paid for in the month of purchase, the remaining 30% are paid in the following month. What are budgeted cash paymerts fer le lowingw0 n May, and $735.000 in Jure Seerty ert Multiple Choice $528,000 O $577,500 $388,500 $189,000 11 of 20 t ( Prex
The following are the total sales of Top Class Ltd for the past three months of 2021Month April May JuneTotal Sales R900 000 R700 000 R500 000The budgeted sales figures for the next three months are expected as followsMonth July August SeptemberTotal Sales R825 000 R760 000 R920 000Additional information1) 40% of all sales are made in cash.2) Credit sales for October 2021 are expected to be R450 000.3) Debtors are collected as follows.• 15% of outstanding amounts are collected during the month following the month of sale(i.e.: 30 days). A discount of 4,5% is offered for early settlement of accounts.• 60% is collected in the subsequent month (i.e.: 60 days).• 20% is collected in the subsequent month (i.e.: 90 days).• The balance is irrecoverable and needs to be written off.REQUIRED:Prepare a schedule of forecasted receipts from customers (cash and credit) for the period 1 July 2021to 31 October 2021.Show all workingsRound to the nearest Rand
In preparation for the quarterly cash budget, the following revenue and cost information have been compiled. Prepare and evaluate a cash budget for the months of October, November, and December based on the given information: (a) The firm collects 60 percent of sales for cash and 40 percent of its sales one month later. (b) Interest income of ₱50,000 on marketable securities will be received in December. How much is the total cash receipts in November?
In September, the capital expenditure budget of ABC Corp. Indicates a P140,000 purchase of equipment. The ending September cash balance from operations is budgeted at P20,000. The company wants to maintain a minimum cash balance of P10,000. What is the minimum cash loan that must be planned by ABC Corp borrowed from the bank in September?
Melon Investment Ltd is preparing its cash budget for the first five months of the year. The following information is available: Sales for January to May are estimated as follows: October UGX. 40,000; November UGX. 60,000; December UGX. 80,000; January UGX. 50,000, February UGX. 70,000, March UGX. 90,000, April UGX. 100,000, and May UGX. 80,000. The company collects 50% of sales in the month of sale, 40% in the following month, and 10% in the second month after the sale. The company expects to purchase UGX. 20,000; of inventory in October; UGX. 50,000 in November; UGX. 30,000 in December; UGX. 40,000 in January, UGX. 50,000 in February, UGX. 60,000 in March, UGX. 70,000 in April, and UGX. 80,000 in May. The company pays for 50% of inventory purchases in the month of purchase and 50% in the following month. The company's fixed expenses are UGX. 20,000 per month and variable expenses are estimated at 30% of sales. The company has a cash balance of UGX. 10,000 at the beginning of…
Bandeiras Company has budgeted its activity for December according to the following information: Sales at R550 000. All sales are cash sales. Inventory balance on 30 November was R300 000. Budgeted depreciation for December is R35 000. The cash balance on 1 December was R25 000. Selling and administrative expenses are budgeted at R60 000 for December and are paid in cash in the same month. The planned inventory balance on 31 December is R270 000. The invoice cost for purchases represents 75% of the sales price. All purchases are paid for in cash. The total budgeted cash receipts for December are: A. R137 500 B. R412 500 C. R585 000 D. R550 000
JL is preparing its cash budget for the next three quarters. The following data have been extracted from the operational budgets: Sales revenue Quarter 1 OMR 500,000 Quarter 2 OMR 450,000 Quarter 3 OMR 480,000 Direct material purchases Quarter 1 OMR 138,000 Quarter 2 OMR 151,200 Quarter 3 OMR 115,600 Additional information is available as follows: JL sells 20% of its goods for cash. Of the remaining sales value, 70% is received within the same quarter as sale and 30% is received in the following quarter. It is estimated that trade receivables will be OMR 125,000 at the beginning of Quarter 1. No bad debts are anticipated. 50% of payments for direct material purchases are made in the quarter of purchase, with the remaining 50% in the quarter following purchase. It is estimated that the amount owing for direct material purchases will be OMR 60,000 at the…
Wellness Products, needs a cash budget for September. The following information is available: 1. The cash balance at the beginning of August is 9,000€. 2. Contribution margin is 50% (COGS are 50% of sales) 3. Actual sales for July and expected sales for August, September and October are as shown below. Some customers pay in cash (Cash sales) and others in account as described in the figure below. Customers that pay in account, make the payment the month after. 4. Purchases of inventory (company just resells what they buy) must be done so that the end of month inventory must cover 20% of next month sales. Initial inventory in July was 5.300€. 100% of a month's inventory purchases are paid for during the month of purchase. 1. Prepare a schedule of expected cash collections for August, September & October. 2. Prepare a merchandise purchases budget for July, August, and September. 3. Prepare a schedule of expected cash flow (cash in minus cash out) for August, and September. Cash Sales…
Use the information below to answer question 1 to 22. The financial controller of BOE Ltd. is gathering data to prepare a cash budget for the second quarter of 2018. The following information is available. a) Sales for the first six months of the year are as follows: January February March 23,000 30,000 50,000 57,000 60,000 56,000 April Мay June a) 40% of all sales are cash sales. b) Of credit sales, 50% are collected in the month of sales and the remaining 50% collected the following month. c) The cost of raw materials equals 35% of each month's sales. 50% of raw materials are paid for in the month of purchase. The remaining 50% are paid in the following month. d) Wages total ¢5,500 per month and are paid for in the month incurred. e) Operating expenses per month totalled ¢16,800 of which ¢2,500 is depreciation and ¢300 is expiration of prepaid insurance premium (the annual premium of ¢3,600 paid in Jan 1). f) Dividend of ¢7,000 declared in March 31 will be paid on April 20. g) Old…
If you have the following data for the purpose of preparing the cash budget for Al-Iman Company for the year 2022, which has a capital:- 1) Expected monthly sales in 2022: June 100000, July 80000, August 60000, September 100000, October 80000. 2) The expected cash sales are 10%, and the forward sales are obtained on the basis of 50% in the month following the sale, 20% in the month following the sale, 30% in the third month, and a bad debt probability of 15% 3) The Gross Profit Ratio is 40% 4) The company will purchase monthly raw materials on the basis of the sales of the following month, and the purchase price will be paid in the month following the purchase. 5) The fixed expenses amount to 36000 riyals distributed equally over the months of the year 6) The monthly consumption is estimated at 2000 riyals 7) Variable payments amount to 10% of the sales value, 50% of which is paid in the same month, and the rest in the immediately following month. 8) The company will purchase a new…
1. The following various elements relate to Whitfield Inc's cash budget for April of the current year. For each item, determine the amount of cash that Whitfield should receive or pay in April. Be sure to show total cash for a, b, and c and all calculations for d. a. At $28 each, unit sales are 5,000 and 6,000 for March and April, respectively. Total sales are typically 40% for cash and 60% on credit; 30% of credit sales are collected in the month of sales with the balance collected the next month. b. Merchandise purchases were $45,000 and $78,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% discount. The balance is paid (without discount) in the following month. c. Fixed administrative expenses, which total $11,000 per month, are paid in the month incurred. Variable administrative expenses amount to 20% of total monthly sales revenue, one half of which is paid in the month incurred with the balance paid in the…