X-Tel budgets sales of $60,000 for April, $100,000 for May, and $80,000 for June.Sales commissions are 10% of sales dollars and the company pays a sales manager a salary of $6,000 per month. Sales commissionsand salaries are paid in the month incurred.Prepare a selling expense budget for April, May, and June.Budgeted salesSales commissionsX-TELSelling Expense BudgetAprilMayJune Zilly Company budgets sales of $400,000 for June. Zilly pays a sales manager a monthly salary of $6,000 and a commission of 8% ofthat month's sales dollars.Prepare a selling expense budget for June.Budgeted salesZILLY COMPANYSelling Expense BudgetJune

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Answered: X-Tel budgets sales of $60,000 for…

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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Cash Budget Wilson's Retail Company is planning a cash budget for the next three months. Estimated sales revenue is as follows: Month Sales Revenue Month Sales Revenue $300,000 March 245,000 April $200,000 155,000 January February All sales are on credit; 60 percent is collected during the month of sale, and 40 percent is collected during the next month. Cost of goods sold is 70 percent of sales. Payments for merchandise sold are made in the month following the month of sale. Operating expenses total $40,000 per month and are paid during the month incurred. The cash balance on February 1 is estimated to be $30,000. Prepare monthly cash budgets for February, March, and April. Use negative signs only with beginning and ending cash balances, when appropriate. Do not use negative signs with disbursement answers. Wilson's Retail Company Cash Budgets February, March, and April February March Cash balance, beginning $ Total Cash receipts Cash available Total disbursements Cash balance, ending…
X-Tel budgets sales of $52.000 for April, $92,000 for May, and $64,000 for June. Sales commissions are 10% of sales dollars and the company pays a sales manager a salary of $5,200 per month Sales commissions and salaries are paid in the month incurred. Prepare a selling expense budget for April, May, and June. X-TEL Selling Expense Budget April May Budgeted sales Sales commissions
Market Leasing budgeted credit sales in the first quarter of 2014 to be as follows: January $210,000 February 190,000 March 170,000 The budgeted beginning cash balance at February 1 is expected to be $14,000 and budgeted monthly cash disbursements are expected to be $198,000. Credit sales in December, 2013 are expected to be $204,000. The company expects to collect 20% of a month’s sales in the month of sale and 80% in the following month. How much is the budgeted cash balance at the end of February?
Cash Budget The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July $109,000 $136,000 $174,000 M 46,000 58,000 63,000 32,000 Sales Manufacturing costs Selling and administrative expenses Capital expenditures 37,000 38,000 42,000 The company expects to sell about 15% 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 $10,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 85% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of May 1 include cash of…
Production Budget
Schedule of Cash Payments for a Service Company EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $25,600. The budgeted expenses for the next three months are as follows: January February March Salaries $58,900 $71,700 $79,400 Utilities 4,900 5,400 6,400 Other operating expenses 44,800 48,800 53,800 Total $108,600 $125,900 $139,600 Other operating expenses include $3,200 of monthly depreciation expense and $700 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 70% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.
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Please do not give solution in image format thanku
Cash Budget The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following: Cash balance on June 1 is $1,236. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 Credit sales 28,900 35,000 Total sales $38,900 $53,000 Credit sales are collected over a 3-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible. Inventory purchases average 72% of a month's total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner. Rent is $5,400 per month. Taxes to be paid in June are $6,780. The owner also…

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