The cash budget for the month July to September and supporting schedule of receivables and payables. Given information: Average selling price is $650. 40% of invoices will be paid in the month of invoiced. 45% will be paid in the following month. 15% of invoice will be paid two months after the month of invoice. Variable manufacturing overhead is $7 per direct manufacturing labor hour. Variable marketing costs are driven by the number of sales visit. Fixed manufacturing overhead costs is $7500 per month Fixed non manufacturing overhead cost is $4500 per month.

Question

D-Mart reported a net income of $19,500 for the previous year. At the beginning of the year, the company had $300,000 in assets. By the end of the year, assets had increased by $100,000. Calculate the return on Answer this question

Answer 1

Question

Chapter 6, Problem 6.38P

1.

To determine

To prepare: The cash budget for the month July to September and supporting schedule of receivables and payables.

Given information:

Average selling price is $650.

40% of invoices will be paid in the month of invoiced.

45% will be paid in the following month.

15% of invoice will be paid two months after the month of invoice.

Variable manufacturing overhead is $7 per direct manufacturing labor hour.

Variable marketing costs are driven by the number of sales visit.

Fixed manufacturing overhead costs is $7500 per month

Fixed non manufacturing overhead cost is $4500 per month.

2.

To determine

Whether management will be able to pay off $60,000 one year note in the month of October and if not what actions are recommended to management.

3.

To determine

Whether company is able to maintain $14,000 in all three month. If not, what suitable suggestion is for cash management.

4.

To determine

To explain: The reason for which the managers prepare the cash budget in addition to the revenue, expenses and income budget.

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D-Mart reported a net income of $19,500 for the previous year. At the beginning of the year, the company had $300,000 in assets. By the end of the year, assets had increased by $100,000. Calculate the return on Answer this question

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Answer 2

Question

Chapter 6, Problem 6.38P

1.

To determine

To prepare: The cash budget for the month July to September and supporting schedule of receivables and payables.

Given information:

Average selling price is $650.

40% of invoices will be paid in the month of invoiced.

45% will be paid in the following month.

15% of invoice will be paid two months after the month of invoice.

Variable manufacturing overhead is $7 per direct manufacturing labor hour.

Variable marketing costs are driven by the number of sales visit.

Fixed manufacturing overhead costs is $7500 per month

Fixed non manufacturing overhead cost is $4500 per month.

2.

To determine

Whether management will be able to pay off $60,000 one year note in the month of October and if not what actions are recommended to management.

3.

To determine

Whether company is able to maintain $14,000 in all three month. If not, what suitable suggestion is for cash management.

4.

To determine

To explain: The reason for which the managers prepare the cash budget in addition to the revenue, expenses and income budget.

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Answer 3

Question

Chapter 6, Problem 6.38P

1.

To determine

To prepare: The cash budget for the month July to September and supporting schedule of receivables and payables.

Given information:

Average selling price is $650.

40% of invoices will be paid in the month of invoiced.

45% will be paid in the following month.

15% of invoice will be paid two months after the month of invoice.

Variable manufacturing overhead is $7 per direct manufacturing labor hour.

Variable marketing costs are driven by the number of sales visit.

Fixed manufacturing overhead costs is $7500 per month

Fixed non manufacturing overhead cost is $4500 per month.

2.

To determine

Whether management will be able to pay off $60,000 one year note in the month of October and if not what actions are recommended to management.

3.

To determine

Whether company is able to maintain $14,000 in all three month. If not, what suitable suggestion is for cash management.

4.

To determine

To explain: The reason for which the managers prepare the cash budget in addition to the revenue, expenses and income budget.

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Answer 4

Question

Chapter 6, Problem 6.38P

1.

To determine

To prepare: The cash budget for the month July to September and supporting schedule of receivables and payables.

Given information:

Average selling price is $650.

40% of invoices will be paid in the month of invoiced.

45% will be paid in the following month.

15% of invoice will be paid two months after the month of invoice.

Variable manufacturing overhead is $7 per direct manufacturing labor hour.

Variable marketing costs are driven by the number of sales visit.

Fixed manufacturing overhead costs is $7500 per month

Fixed non manufacturing overhead cost is $4500 per month.

2.

To determine

Whether management will be able to pay off $60,000 one year note in the month of October and if not what actions are recommended to management.

3.

To determine

Whether company is able to maintain $14,000 in all three month. If not, what suitable suggestion is for cash management.

4.

To determine

To explain: The reason for which the managers prepare the cash budget in addition to the revenue, expenses and income budget.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.38P

1.

To determine

To prepare: The cash budget for the month July to September and supporting schedule of receivables and payables.

Given information:

Average selling price is $650.

40% of invoices will be paid in the month of invoiced.

45% will be paid in the following month.

15% of invoice will be paid two months after the month of invoice.

Variable manufacturing overhead is $7 per direct manufacturing labor hour.

Variable marketing costs are driven by the number of sales visit.

Fixed manufacturing overhead costs is $7500 per month

Fixed non manufacturing overhead cost is $4500 per month.

2.

To determine

Whether management will be able to pay off $60,000 one year note in the month of October and if not what actions are recommended to management.

3.

To determine

Whether company is able to maintain $14,000 in all three month. If not, what suitable suggestion is for cash management.

4.

To determine

To explain: The reason for which the managers prepare the cash budget in addition to the revenue, expenses and income budget.

Answer 6

Chapter 6, Problem 6.38P

1.

To determine

To prepare: The cash budget for the month July to September and supporting schedule of receivables and payables.

Given information:

Average selling price is $650.

40% of invoices will be paid in the month of invoiced.

45% will be paid in the following month.

15% of invoice will be paid two months after the month of invoice.

Variable manufacturing overhead is $7 per direct manufacturing labor hour.

Variable marketing costs are driven by the number of sales visit.

Fixed manufacturing overhead costs is $7500 per month

Fixed non manufacturing overhead cost is $4500 per month.

Answer 7

Chapter 6, Problem 6.38P

1.

To determine

To prepare: The cash budget for the month July to September and supporting schedule of receivables and payables.

Given information:

Average selling price is $650.

40% of invoices will be paid in the month of invoiced.

45% will be paid in the following month.

15% of invoice will be paid two months after the month of invoice.

Variable manufacturing overhead is $7 per direct manufacturing labor hour.

Variable marketing costs are driven by the number of sales visit.

Fixed manufacturing overhead costs is $7500 per month

Fixed non manufacturing overhead cost is $4500 per month.

Answer 8

2.

To determine

Whether management will be able to pay off $60,000 one year note in the month of October and if not what actions are recommended to management.

Answer 9

2.

To determine

Whether management will be able to pay off $60,000 one year note in the month of October and if not what actions are recommended to management.

Answer 10

3.

To determine

Whether company is able to maintain $14,000 in all three month. If not, what suitable suggestion is for cash management.

Answer 11

3.

To determine

Whether company is able to maintain $14,000 in all three month. If not, what suitable suggestion is for cash management.

Answer 12

4.

To determine

To explain: The reason for which the managers prepare the cash budget in addition to the revenue, expenses and income budget.

Answer 13

4.

To determine

To explain: The reason for which the managers prepare the cash budget in addition to the revenue, expenses and income budget.

Answer 14

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Ch. 6 - What are the four elements of the budgeting cycle?Ch. 6 - Define master budget.Ch. 6 - Strategy, plans, and budgets are unrelated to ore...Ch. 6 - Budgeted performance is a better criterion than...Ch. 6 - Production managers and marketing managers are...Ch. 6 - Budgets meet the cost-benefit test. They force...Ch. 6 - Define rolling budget. Give an example.Ch. 6 - Outline the steps in preparing an operating...Ch. 6 - The sales forecast is the cornerstone for...Ch. 6 - Prob. 6.10Q

Whether management will be able to pay off $60,000 one year note in the month of October and if not what actions are recommended to management.

Whether company is able to maintain $14,000 in all three month. If not, what suitable suggestion is for cash management.

To explain: The reason for which the managers prepare the cash budget in addition to the revenue, expenses and income budget.

Chapter 6 Solutions