Use the following information to prepare the September cash budget for PTO Company. Ignore the "Loan activity" section of the budget. a. Beginning cash balance, September 1, $43,000. b. Budgeted cash receipts from September sales, $259,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $77,000; and September (budgeted), $104,000. Payments for direct materials follow: 65% in the month of purchase and 35% In the first month after purchase. d. Budgeted cash payments for direct labor in September, $35,000. e. Budgeted depreciation expense for September, $3,200. f. Budgeted cash payment for dividends in September, $55,000. g. Budgeted cash payment for Income taxes in September, $10,900. h. Budgeted cash payment for loan Interest in September, $1,600. PTO COMPANY Cash Budget Beginning cash balance Add: Cash receipts from sales Total cash available Add: Cash payments for Direct materials Direct labor Dividends Income taxes Interest on loan Total cash payments Ending cash balance SEES September S 43,000 259,000 302,000 35,000 55,000 10,900 1,600 102,500 $ 199,500

Use the following information to prepare the September cash budget for PTO Company. Ignore the "Loan activity" section of the budget. a. Beginning cash balance, September 1, $43,000. b. Budgeted cash receipts from September sales, $259,000. c. Direct materials are purchased on credit. Purchase amounts are August (actual), $77,000; and September (budgeted), $104,000. Payments for direct materials follow: 65% in the month of purchase and 35% In the first month after purchase. d. Budgeted cash payments for direct labor in September, $35,000. e. Budgeted depreciation expense for September, $3,200. f. Budgeted cash payment for dividends in September, $55,000. g. Budgeted cash payment for Income taxes in September, $10,900. h. Budgeted cash payment for loan Interest in September, $1,600. PTO COMPANY Cash Budget Beginning cash balance Add: Cash receipts from sales Total cash available Add: Cash payments for Direct materials Direct labor Dividends Income taxes Interest on loan Total cash payments Ending cash balance SEES September S 43,000 259,000 302,000 35,000 55,000 10,900 1,600 102,500 $ 199,500

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

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
1.Please prepare a cash budget for the Maliwan Co. for the month of April based on the following information: -Estimated cash balance at the end of March was $ 200,000 -April’s depreciation will be $50,000 -Taxes which will be paid in June are $175,000 -April’s payroll will be $90,000 -April’s insurance expense for the month is $40,000 and was prepaid in the month of March. -April’s operating expense are $75,000 -Collections of sales are as follows: 50% in the month of the sale, 30% in the following month, and 20% in the next month. -Receivables balance as of the end of March is as follows $400,000 ( $300,000 relating to March, $100,000 relating to February ). -Sales for the month of April are forecasted to be $900,000 -Merchandise purchases are paid as follows: 50% in the month of the purchase, 30% in the next month, and 20% one month later. -Purchases for March and February were $300,000 and $250,000 respectively and April’s purchases are estimated to be $200,000
On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections: August sales (actual) September sales (actual) October sales (estimated) November sales (estimated) December sales (estimated) $ 40,000 $ 50,000 $ 20,000 $ 70,000 $ 60,000 Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter. Budgeted collections from customers in October total:
You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company’s operations: The cash balance on December 1 is $55,400. Actual sales for October and November and expected sales for December are as follows: October November December Cash sales $ 69,400 $ 88,400 $ 96,800 Sales on account $ 445,000 $ 596,000 $ 625,000 Sales on account are collected over a three-month period as follows: 20% collected in the month of sale, 60% collected in the month following sale, and 18% collected in the second month following sale. The remaining 2% is uncollectible. Purchases of inventory will total $340,000 for December. Thirty percent of a month’s inventory purchases are paid during the month of purchase. The accounts payable remaining from November’s inventory purchases total $173,500, all of which will be paid in December. Selling and administrative expenses are…
Please do not give image format
Mecca 4 Company, a retailer of specialty wall-papers, prepares a monthly master budget. Data for the September master budget are given below: a. The August 31st balance sheet (Actual): cash accounts receivable inventory building and equipment (net) $25,000 133,000 32,813 203,500 e. accounts payable August-Actual September-Projected October-Projected November-Projected capital stock retained earnings b. Actual sales for August and budgeted sales for September, October, and November are given below: $62,016 $190,000 375,000 405,000 310,000 295,372 36,925 C. Sales are 30% for cash and 70% on credit. All credit sales are collected in the month following the sale. There are no bad debts. d. The gross margin percentage is 65% of sales. The desired ending inventory is equal to 25% of the following month's COGS. One fourth of the purchases are paid for in the month of the purchase and the remaining 75% are purchased on account and paid in full the following month. The monthly operating…
Budget balance help!
A cash budget, by quarters, is given below for a retail company (000 omitted). Thecompany requires a minimum cash balance of at least $5,000 to start each quarter.
Zisk Company purchases direct materials on credit. Budgeted purchases are April, $89,000; May, $119,000; and June, $129,000. Cash payments for purchases are: 70% in the month of purchase and 30% in the first month after purchase. Purchases for March are $79,000. Prepare a schedule of cash payments for direct materials for April, May, and June.
2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker-assignments&takeAssignmentS... A Estimated cash payments budget Grow Inc. was organized on February 28. Budgeted selling and administrative expenses for each of the first three months of operations are as follows: March April May $101,500 93,400 85,000 Depreciation, insurance, and property taxes represent $21,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in November. The remainder of the expenses are expected to be paid 71% in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May. Enter all amounts as positive numbers. 4 0 GROW INC. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 Line Item Description March March expenses: Paid in…
The following data are from the budget of Ritewell Publishers. Half the company’s sales are transacted on a cash basis. The other half are paid for with a 1-month delay. The company pays all of its credit purchases with a 1-month delay. Credit purchases in January were $160, and total sales in January were $804. February March April Total sales $ 460 $ 480 $ 440 Cash purchases 135 145 125 Credit purchases 105 95 105 Labor and administrative purchases 95 95 95 Taxes, interest, and dividends 75 75 75 Capital expenditures 230 0 0 Complete the following cash budget. (Leave no cells blank. Enter '0' when necessary. Negative amounts should be indicated by a minus sign.)
Vaughn, Inc. prepared the following cash budget for the fourth quarter. Fill in the missing amounts, assuming that Vaughn desires to maintain a $15,000 minimum monthly cash balance and all equipment was purchased during December. Any required borrowings and repayments must be made in even increments of $1,000. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Beginning cash balance Collections from sales Total cash available Less disbursements Materials purchases Direct labor Manufacturing overhead Selling & administrative expenses Equipment purchase Dividends Total disbursements Excess (deficiency) of cash Minimum cash balance Cash available (needed) Financing: Borrowings Repayments Interest Total financing Ending cash balance October 50,000 66,500 5,000 20,000 28,500 66,000 15.000 -14,500 $15.500 November $15.500 $ 93,500 10.000 6,000 24,000 25,000 28.500 15.000 -150 -15,150 $13,350 $ December 120,000 14,000 8,000 22,000 5,000 15,000 9,000 $ Quarter…