Beached is a retail outlet situated in a very popular tourist town not far from Canberra. It is very popular during school holidays, with thepeak tourist season being in December and January.Sales consist of cash sales to retail customers (70%) and credit sales to tourist operators (30%). Credit sales are collected 20% in the month ofsale, 60% in the month following the sale and 20% in the second month following the sale.Opening Accounts Receivable are $120,000.Inventory is marked-up 70% on cost and inventory opening balances are required to be 60% of the month's expected sales.Inventory is purchased on credit with 40% paid in the month following the purchase and the remainder paid two months following thepurchase. Opening Accounts Payable is $80,000.Using tha above information, prepare the following:1. Prepare a cash receipts budget for the six months2. Prepare a cash payments budget for the six months3. Prepare a budgeted pfofit and loss to Gross Profit for the six monthsJanFebMarAprMayJunSales150,000120,000115,000135,000110,000125,000

JanFebMarAprMayJunSales150,000120,000115,000135,000110,000125,000Retail…

Using tha above information, prepare the following: 1. Prepare a cash receipts budget for the six months 2. Prepare a cash payments budget for the six months 3. Prepare a budgeted pfofit and loss to Gross Profit for the six months

Using tha above information, prepare the following: 1. Prepare a cash receipts budget for the six months 2. Prepare a cash payments budget for the six months 3. Prepare a budgeted pfofit and loss to Gross Profit for the six months

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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Prepare a direct materials budget for the first quarter of the financial year ending 30 September 2022. Prepare a cash budget for the first quarter of the financial year ending 30 September 2022 including any necessary schedules. Prepare a budgeted income statement for the first quarter of the financial year ending 30 September 2022.
Preparing a financial budget—budgeted balance sheet Use the following June actual ending balances and July 31, 2018, budgeted amounts for Omas to prepare a budgeted balance sheet for July 31, 2018. June 30, Merchandise Inventory balance, $17,770 July purchase of Merchandise Inventory, $4,400, paid in cash July payments of Accounts Payable, $8,400 June 30 Accounts Payable balance, $10,700 June 30 Furniture and Fixtures balance, $34,100; Accumulated Depreciation balance, $29,880 June 30 total stockholders’ equity balance, $28,020 July Depreciation Expense, $500 Cost of Goods Sold, 60% of Saks Other July expenses including income tax $2,000, paid in cash June 30 Cash balance, $11,600 July budgeted Sales, all on account, $12,690 June 30 Accounts Receivable balance, $5,130 July cash receipts from collections on account, $14,700 (Hint: It may be helpful to trace the effects of each transaction on the accounting equation to determine the ending balance of each account.)
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Garden Sales, Incorporated, usually has to borrow money during the second quarter to support peak sales of lawn care equipment during May. It gathered the following information to prepare a cash budget for the quarter: a. Budgeted monthly absorption costing income statements for April-July are: Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense* Total selling and administrative expenses Net operating income. *Includes $30,000 of depreciation each mon. April $ 700,000 490,000 210,000 88,000 49,000 137,000 $ 73,000 May $ 870,000 609,000 261,000 107,000 66,400 173,400 $ 87,600 June $ 580,000 406,000 174,000 69,000 42,800 111,800 $ 62,200 July $ 480,000 336,000 144,000 48,000 46,000 94,000 $ 50,000 b. Sales are 20% for cash and 80% on account. c. Sales on account are collected over a three-month period with 10% collected in the month of sale, 70% collected in the first month following the month of sale, and the remaining 20%…
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Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2022. Sales: quarter 1, 40,000 bags; quarter 2, 56,000 bags. Selling price is $60 per bag. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.8 per pound and 6 pounds of Tarr at $1.50 per pound. 3. Desired inventory levels: 1. 2. Type of Inventory January 1 Snare (bags) 8,000 Gumm (pounds) 9,000 10,000 13,000 Tarr (pounds) 14,000 20,000 25,000 4. 5. 6. 7. April 1 15,000 July 1 18,000 Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. Selling and administrative expenses are expected to be 15% of sales plus $175,000 per quarter. Interest expense is $100,000. Income taxes are expected to be 20% of income before income taxes. Your assistant has prepared two budgets: (1) the manufacturing overhead budget shows expected costs to be 125% of direct labor cost, and…
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1. The following is true of the operational budget, except for: Select one: a. It has a short-term focus, usually one-year b. It sets a plan for the purchase of assets c It is concerned with the cash effect of sales and expenses d. It contains a production budget
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