Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Chapter 7, Problem 7.14E
To determine
To prepare: Cash budget of Company R for the months of January and February
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Pharoah Company expects to have a cash balance of $64,800 on January 1, 2017. These are the relevant monthly budget data for
the first two months of 2017.
Collections from customers: January $89,800, February $164,800.
Payments to suppliers: January $58,800, February $93,800.
Wages: January $30,530, February $40,530. Wages are paid in the month they are incurred.
Administrative expenses: January $21,530, February $24,530. These costs include depreciation of $1,000 per month. All
1.
2.
3.
4.
other costs are paid as incurred.
Selling expenses: January $15,530, February $20,530. These costs are exclusive of depreciation. They are paid as incurred.
Sales of short-term investments in January are expected to realize $12,530 in cash. Pharoah Company has a line of credit at
a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of
$38,800.
5.
6.
Prepare a cash budget for January and February.
Crane Company expects to have a cash balance of $60,350 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017.
1.
Collections from customers: January $85,350, February $160,350.
2.
Payments to suppliers: January $54,350, February $89,350.
3.
Wages: January $30,490, February $40,490. Wages are paid in the month they are incurred.
4.
Administrative expenses: January $21,490, February $24,490. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5.
Selling expenses: January $15,490, February $20,490. These costs are exclusive of depreciation. They are paid as incurred.
6.
Sales of short-term investments in January are expected to realize $12,490 in cash. Crane Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $34,350.
Prepare a cash budget for January and February.
Ivanhoe Company expects to have a cash balance of $49,400 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2017.
1.Collections from customers: January $86,000, February $131,700
2.Payments to suppliers: January $45,600, February $50,300
3.Wages: January $34,300, February $40,300. Wages are paid in the month they are incurred.
4.Administrative expenses: January $24,300, February $33,000. These costs include depreciation of $1,300 per month. All other costs are paid as incurred.
5.Selling expenses: January $18,300, February $21,200. These costs are exclusive of depreciation. They are paid as incurred.
6.Sales of short-term investments in January are expected to realize $13,400 in cash. Ivanhoe has a line of credit at a local bank that enables it to borrow up to $40,300. The company wants to maintain a minimum monthly cash balance of $25,500.
Chapter 7 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 14QCh. 7 - Prob. 15QCh. 7 - Prob. 16QCh. 7 - Prob. 17QCh. 7 - Prob. 18QCh. 7 - Prob. 19QCh. 7 - Prob. 20QCh. 7 - Prob. 21QCh. 7 - Prob. 22QCh. 7 - Prob. 23QCh. 7 - Prob. 24QCh. 7 - Prob. 25QCh. 7 - Prob. 26QCh. 7 - Prob. 27QCh. 7 - Prob. 28QCh. 7 - Match each situation with the fraud triangle...Ch. 7 - Prob. 7.2BECh. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - While examining cash receipts information, the...Ch. 7 - Prob. 7.6BECh. 7 - Luke Rove is uncertain about the control features...Ch. 7 - Prob. 7.8BECh. 7 - Prob. 7.9BECh. 7 - Prob. 7.10BECh. 7 - Prob. 7.11BECh. 7 - Prob. 7.12BECh. 7 - Prob. 7.13BECh. 7 - Prob. 7.14BECh. 7 - Prob. 7.1DIECh. 7 - Prob. 7.2DIECh. 7 - Prob. 7.3DIECh. 7 - Prob. 7.4ADIECh. 7 - Prob. 7.4BDIECh. 7 - Prob. 7.1ECh. 7 - Prob. 7.2ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Prob. 7.8ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.1APCh. 7 - Prob. 7.2APCh. 7 - Prob. 7.3APCh. 7 - Prob. 7.4APCh. 7 - Prob. 7.5APCh. 7 - Prob. 7.6APCh. 7 - Prob. 7.7APCh. 7 - Prob. 7.8APCh. 7 - Prob. 7CCCPCh. 7 - Prob. 7.1EYCTCh. 7 - Prob. 7.2EYCTCh. 7 - Prob. 7.3EYCTCh. 7 - Prob. 7.4EYCTCh. 7 - Prob. 7.5EYCTCh. 7 - Prob. 7.6EYCTCh. 7 - Prob. 7.7EYCTCh. 7 - Prob. 7.8EYCTCh. 7 - Prob. 7.9EYCTCh. 7 - Prob. 7.10EYCTCh. 7 - Prob. 7.1IFRSCh. 7 - Prob. 7.2IFRS
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