Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 14, Problem 2E
Exercise 7-2A Preparing a sales budget
Parliament Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Parliament has budgeted sales as indicated in the following table. The company expects a 10 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March.
Required
a. Complete the sales budget by filling in the missing amounts.
b. Determine the amount of sales revenue Parliament will report on its first quarter pro forma income statement.
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Complete part a and b please and thank you
Problem 6
Tomtom store seeks your assistance to develop cash and other budget information
for May, June, and July 2009. On April 30, 2009, the company had cash balance of
Php5,500.
The budget is based on the following assumptions:
A. Sales
1. Each month's sales are billed on the last day of the month
2. Customers are allowed 3% discount if payment is made within 10 days
after the billing date.
Accounts receivable are booked gross.
3. Sixty percent of the billings are collected within the discount period, 25%
are collected by the end of the month where discount period is allowed,
9% are collected by the end of the end second month, and 6% prove
uncollectible.
B. Purchases
1. 54% of all purchases of materials and selling, general and administrative
expenses are paid at the month purchased and the remainder in the
following month.
2. Each month's unit of ending inventory is equal to 130% of the month's
units of sales.
3. The cost of each unit of inventory is P20.
4. Selling, general and…
Exercise 7-2A (Algo) Preparing a sales budget LO 7-2
Perez Company, which expects to start operations on January 1, year 2, will sell digital cameras in shopping malls. Perez has budgeted
sales as indicated in the following table. The company expects a 14 percent increase in sales per month for February and March. The
ratio of cash sales to sales on account will remain stable from January through March.
Required
a. Complete the sales budget by filling in the missing amounts.
b. Determine the amount of sales revenue Perez will report on its first quarter pro forma income statement.
Complete this question by entering your answers in the tabs below.
Required A Required B
Complete the sales budget by filling in the missing amounts.
Note: Do not round intermediate calculations. Round final answers to two decimal places.
February
Sales
Cash sales
Sales on account
Total budgeted sales
January
$
42,000
116.000
$ 158,000
Chapter 14 Solutions
Survey Of Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - 3.What are the three levels of planning? Explain...Ch. 14 - 4.What is the primary factor that distinguishes...Ch. 14 - 5.What is the advantage of using a perpetual...Ch. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - 8. Ken Shilov, manager of the marketing...Ch. 14 - Prob. 9QCh. 14 - 10.What is the normal starting point in developing...
Ch. 14 - 11. How does the level of inventory affect the...Ch. 14 - 12.What are the components of the cash budget?...Ch. 14 - 13.The primary reason for preparing a cash budget...Ch. 14 - 14.What information does the pro forma income...Ch. 14 - 15.How does the pro forma statement of cash flows...Ch. 14 - Exercise 7-1A Budget responsibility Teresa...Ch. 14 - Exercise 7-2A Preparing a sales budget Parliament...Ch. 14 - Prob. 3ECh. 14 - Exercise 7-4A Preparing sales budgets with...Ch. 14 - Exercise 7-5A Determining cash receipts from...Ch. 14 - Exercise 7-6A Using judgment in making a sales...Ch. 14 - Exercise 7-7A Preparing an inventory purchases...Ch. 14 - Exercise 7-8A Preparing a schedule of cash...Ch. 14 - Exercise 7-9A Determining the amount of expected...Ch. 14 - Exercise 7-10A Preparing inventory purchases...Ch. 14 - Exercise 7-11A Preparing a schedule of cash...Ch. 14 - Prob. 12ECh. 14 - Exercise 7-13A Preparing a cash budget The...Ch. 14 - Exercise 7-14A Determining amount to borrow and...Ch. 14 - Prob. 15ECh. 14 - Problem 7-16A Behavioral impact of budgeting...Ch. 14 - Prob. 17PCh. 14 - Problem 7-18A Preparing an inventory purchases...Ch. 14 - Prob. 19PCh. 14 - Problem 7-21A Preparing a cash budget Fayette...Ch. 14 - Prob. 21PCh. 14 - Problem 7-22A Preparing budgets with multiple...Ch. 14 - Problem 7-23A Preparing a master budget for retail...Ch. 14 - ATC 7-1 Business Applications Case Preparing and...Ch. 14 - ATC7-2 Group Assignment Master budget and pro...Ch. 14 - ATC 7-4 Writing Assignment Continuous budgeting...Ch. 14 - Ethical Dilemma Bad budget system or unethical...
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