FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
15th Edition
ISBN: 9781265564483
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 22, Problem 2APSA
Requirement-1:
To determine
To prepare: The Cash receipts Budget for July, August and September
Requirement-1:
Expert Solution

Answer to Problem 2APSA
Solution: The Cash receipts Budget for July, August and September is as follows:
July | August | September | |
Budgeted Cash Receipts | $ 57,800 | $ 67,200 | $ 73,600 |
Explanation of Solution
Explanation: The Cash receipts Budget for July, August and September is prepared as follows:
Cash Receipts | July | August | September |
Budgeted Sales (A) | $ 64,000 | $ 80,000 | $ 48,000 |
Cash Sales (B) = (A*20%) | $ 12,800 | $ 16,000 | $ 9,600 |
Credit Sales (C) = (A*80%) | $ 51,200 | $ 64,000 | $ 38,400 |
Collection of Sales: | |||
Cash Sales (in the same month) | $ 12,800 | $ 16,000 | $ 9,600 |
Credit Sales (in the next month) | $ 45,000 | $ 51,200 | $ 64,000 |
Budgeted Cash Receipts | $ 57,800 | $ 67,200 | $ 73,600 |
Conclusion
The Cash receipts Budget for July, August and September is as follows:
July | August | September | |
Budgeted Cash Receipts | $ 57,800 | $ 67,200 | $ 73,600 |
Requirement-2:
To determine
To prepare: The
Requirement-2:
Expert Solution

Answer to Problem 2APSA
Solution: The Cash Budget for July, August and September is as follows:
Cash Budget: | July | August | September |
Beginning Cash Balance | $ 15,000 | $ 15,000 | $ 25,505 |
Budgeted Cash Receipts | $ 57,800 | $ 67,200 | $ 73,600 |
Budgeted Cash payments: | |||
Direct Material | $ 16,160 | $ 13,440 | $ 13,760 |
Direct Labor | $ 4,040 | $ 3,360 | $ 3,440 |
Factory | $ 20,200 | $ 16,800 | $ 17,200 |
Sales Commission | $ 6,400 | $ 8,000 | $ 4,800 |
Office Salaries | $ 4,000 | $ 4,000 | $ 4,000 |
Rent | $ 6,500 | $ 6,500 | $ 6,500 |
Interest on loan | $ 50 | $ 46 | $ - |
Total Budgeted Cash Payments | $ 57,350 | $ 52,146 | $ 49,700 |
Cash Surplus/(Deficit) | $ 15,450 | $ 30,055 | $ 49,405 |
Beginning Loan balance | $ 5,000 | $ 4,550 | $ - |
Loan Taken | $ - | ||
Loan Paid | $ 450 | $ 4,550 | |
Ending Loan balance | $ 4,550 | $ - | $ - |
Ending Cash balance | $ 15,000 | $ 25,505 | $ 49,405 |
Explanation of Solution
Explanation: The Cash Budget for July, August and September is prepared as follows:
Cash Budget: | July | August | September |
Beginning Cash Balance (A) | $ 15,000 | $ 15,000 | $ 25,505 |
Budgeted Cash Receipts (B) | $ 57,800 | $ 67,200 | $ 73,600 |
Budgeted Cash payments: | |||
Direct Material | $ 16,160 | $ 13,440 | $ 13,760 |
Direct Labor | $ 4,040 | $ 3,360 | $ 3,440 |
Factory Overhead | $ 20,200 | $ 16,800 | $ 17,200 |
Sales Commission (10% of sales) | $ 6,400 | $ 8,000 | $ 4,800 |
Office Salaries | $ 4,000 | $ 4,000 | $ 4,000 |
Rent | $ 6,500 | $ 6,500 | $ 6,500 |
Interest on loan (1% of beginning loan balance) | $ 50 | $ 46 | $ - |
Total Budgeted Cash Payments (C) | $ 57,350 | $ 52,146 | $ 49,700 |
Cash Surplus/(Deficit) (D) =A+B-C = | $ 15,450 | $ 30,055 | $ 49,405 |
Beginning Loan balance | $ 5,000 | $ 4,550 | $ - |
Loan Taken (E) | $ - | ||
Loan Paid (F) | $ 450 | $ 4,550 | |
Ending Loan balance | $ 4,550 | $ - | $ - |
Ending Cash balance = D+E-F= | $ 15,000 | $ 25,505 | $ 49,405 |
Conclusion
The Cash Budget for July, August and September is prepared using all the budgets information.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
Management anticipates fixed costs of $65,000 and variable costs equal to 35% of sales. What will pretax income equal if sales are $320,000? Help me
Diane Fabrics has a magnitude of operating leverage of 2 at a sales level of $320,000. If sales increase by 10%, profits (net income) will increase by__. a. 5% b. 10% c. 15% d. 20% 4 POINTS
Tutor please provide answer
Chapter 22 Solutions
FUNDAMENTAL ACCT PRIN TEXT+CONNECT CODE
Ch. 22 - Prob. 1DQCh. 22 - Prob. 2DQCh. 22 - Prob. 3DQCh. 22 - Prob. 4DQCh. 22 - Prob. 5DQCh. 22 - Prob. 6DQCh. 22 - Prob. 7DQCh. 22 - Prob. 8DQCh. 22 - Prob. 9DQCh. 22 - Prob. 10DQ
Ch. 22 - Apple regularly uses budgets. What is the...Ch. 22 - Prob. 12DQCh. 22 - Prob. 13DQCh. 22 - Prob. 14DQCh. 22 - Prob. 1QSCh. 22 - Budgeting process C1 Good management includes good...Ch. 22 - Components of a master budget C2 Identify which of...Ch. 22 - Prob. 4QSCh. 22 - Prob. 5QSCh. 22 - Prob. 6QSCh. 22 - Prob. 7QSCh. 22 - Prob. 8QSCh. 22 - Prob. 9QSCh. 22 - Prob. 10QSCh. 22 - Prob. 11QSCh. 22 - Prob. 12QSCh. 22 - Prob. 13QSCh. 22 - Prob. 14QSCh. 22 - Prob. 15QSCh. 22 - Prob. 16QSCh. 22 - Prob. 17QSCh. 22 - Prob. 18QSCh. 22 - Prob. 19QSCh. 22 - Prob. 20QSCh. 22 - Prob. 21QSCh. 22 - Prob. 22QSCh. 22 - Prob. 23QSCh. 22 - Prob. 24QSCh. 22 - Prob. 25QSCh. 22 - Prob. 26QSCh. 22 - Prob. 27QSCh. 22 - Prob. 28QSCh. 22 - Prob. 29QSCh. 22 - Prob. 30QSCh. 22 - Activity-based budgeting Activity-based budgeting...Ch. 22 - Prob. 32QSCh. 22 - Exercise 22-1 Budget consequences C1 Participatory...Ch. 22 - Exercise 22-2 Master budget definitions C2 Match...Ch. 22 - Prob. 3ECh. 22 - Prob. 4ECh. 22 - Prob. 5ECh. 22 - Prob. 6ECh. 22 - Prob. 7ECh. 22 - Prob. 8ECh. 22 - Prob. 9ECh. 22 - Prob. 10ECh. 22 - Prob. 11ECh. 22 - Prob. 12ECh. 22 - Prob. 13ECh. 22 - Prob. 14ECh. 22 - Prob. 15ECh. 22 - Prob. 16ECh. 22 - Prob. 17ECh. 22 - Prob. 18ECh. 22 - Prob. 19ECh. 22 - Prob. 20ECh. 22 - Prob. 21ECh. 22 - Prob. 22ECh. 22 - Prob. 23ECh. 22 - Prob. 24ECh. 22 - Prob. 25ECh. 22 - Prob. 26ECh. 22 - Prob. 27ECh. 22 - Prob. 28ECh. 22 - Prob. 29ECh. 22 - Prob. 30ECh. 22 - Prob. 31ECh. 22 - Prob. 32ECh. 22 - Prob. 33ECh. 22 - Exercise 22-35
Activity-based budgeting
A1
Render...Ch. 22 - Prob. 1APSACh. 22 - Prob. 2APSACh. 22 - Prob. 3APSACh. 22 - Prob. 4APSACh. 22 - Prob. 5APSACh. 22 - Prob. 6APSACh. 22 - Prob. 7APSACh. 22 - Prob. 8APSACh. 22 - Problem 22-1B Manufacturing: Preparing production...Ch. 22 - Prob. 2BPSBCh. 22 - Prob. 3BPSBCh. 22 - Prob. 4BPSBCh. 22 - Prob. 5BPSBCh. 22 - Prob. 6BPSBCh. 22 - Prob. 7BPSBCh. 22 - Prob. 8BPSBCh. 22 - Prob. 22SPCh. 22 - Prob. 1BTNCh. 22 - Prob. 2BTNCh. 22 - Both the budget process and budgets themselves can...Ch. 22 - The sales budget is usually the first and most...Ch. 22 - Prob. 5BTNCh. 22 - Prob. 6BTNCh. 22 - Prob. 7BTNCh. 22 - To help understand the factors impacting a sales...Ch. 22 - Prob. 9BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- You are an accounts payable clerk for a small manufacturer that creates designer flowerpots. You received three scenarios with specific dates. Answer the following questions. (a1) Scenario 1: • Copy of vendor invoice #201 for $10,000 received on February 15 showing terms of net 2/10 • Payment voucher with the vendor name, the amount due, and terms with management approval • Copy of the remittance advice sent to the vendor showing #201 included in the payment to the vendor on February 24 1. Would you enter accounting transactions? Yes 2. If so, what accounting entries would you make? (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amount in the relevant debit OR credit box. Entering zero in ALL boxes will result in the question being marked incorrect.) Date Account Titles and Explanation > > > Debit…arrow_forwardSubject: financial accountingarrow_forwardPlease provide correct answer of this general accounting question please solvearrow_forward
- On January 1, 2025, Willow Tech Inc. reported a Salaries Payable balance of $39,000. Salaries Expense for 2025 totaled $512,000. The ending balance of Salaries Payable on December 31, 2025, was $46,000. What is the amount of cash paid for salaries in 2025?arrow_forwardHELParrow_forwardPlease give me answer with accounting questionarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education


Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,

Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON

Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY