Homework Help is Here – Start Your Trial Now!
Business
Accounting
will give thumbs up if answers are correct thank you :)

will give thumbs up if answers are correct thank you :)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%

will give thumbs up if answers are correct thank you :) 

 

Given: Anna and John Tatlonghari need to prepare a cash budget for the last quarter of 20xx to make sure they can cover their expenditures during the period. John and Anna have been preparing budgets for the past several years and have been able to establish specific percentages for most of their cash outflows. These percentages are based on their take-home pay. The information in the following table can be used to create their 4th quarter budget for 20xx. Income Monthly take-home pay 100,000 Expenses Housing Utilities Food 30% 5% 10% Transportation Medical/dental Clothing for October and November Clothing for December Property Taxes (November) Appliances Personal Care 7% 0.50% 3% 500 11.50% 1% 2% Entertainment for October and November 6% Entertainment for December 1,500.00 Savings 7.50% Other 5% Excess cash 4.50% Required: a. Prepare a quarterly cash budget for Mr. and Mrs. Tatlonghari covering the months of October through December. b. Is there a specific month when the couple would incur deficit? c. What is the cumulative cash surplus or shortages by the end of December?
Transcribed Image Text:Given: Anna and John Tatlonghari need to prepare a cash budget for the last quarter of 20xx to make sure they can cover their expenditures during the period. John and Anna have been preparing budgets for the past several years and have been able to establish specific percentages for most of their cash outflows. These percentages are based on their take-home pay. The information in the following table can be used to create their 4th quarter budget for 20xx. Income Monthly take-home pay 100,000 Expenses Housing Utilities Food 30% 5% 10% Transportation Medical/dental Clothing for October and November Clothing for December Property Taxes (November) Appliances Personal Care 7% 0.50% 3% 500 11.50% 1% 2% Entertainment for October and November 6% Entertainment for December 1,500.00 Savings 7.50% Other 5% Excess cash 4.50% Required: a. Prepare a quarterly cash budget for Mr. and Mrs. Tatlonghari covering the months of October through December. b. Is there a specific month when the couple would incur deficit? c. What is the cumulative cash surplus or shortages by the end of December?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS