Concept explainers
Videos
a.
Introduction:
Cash collection schedule:
A cash collection schedule refers to the amount which is receivable for the business enterprise in different time periods.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 1
To prepare: A schedule of expected cash collections for April, May, and June, and the quarter in total.
b.
Introduction:
Merchandise purchases budget:
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 2
To prepare: (a) A merchandise purchases budget for April, May, and June and (b) a schedule of expected cash disbursements for merchandise purchases for April, May, June, and Quarters in total.
c.
Introduction:
A cash budget refers to the forecasted
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 3
To prepare: A cash budget for April, May, June, and Quarters in total.
d.
Introduction:
Cash budget:
A cash budget refers to the forecasted cash flow of a business enterprise in a particular time period.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 4
To prepare: A brief memorandum for the company’s president that shows how his revised assumptions affect the cash budget.
Want to see the full answer?
Check out a sample textbook solution
Chapter 8 Solutions
MANAGERIAL ACCOUNTING FOR MANGER CONNEC
- Acorn Construction (calendar-year-end C corporation) has had rapid expansion during the last half of the current year due to the housing market's recovery. The company has record income and would like to maximize its cost recovery deduction for the current year. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Round your answer to the nearest whole dollar amount. Acorn provided you with the following information: Asset Placed in Service Basis New equipment and tools August 20 $ 3,800,000 Used light-duty trucks October 17 2,000,000 Used machinery November 6 1,525,000 Total $ 7,325,000 The used assets had been contributed to the business by its owner in a tax-deferred transaction two years ago. a. What is Acorn's maximum cost recovery deduction in the current year?arrow_forwardGeneral accountingarrow_forwardQuick answer of this accounting questionsarrow_forward
Fundamentals of Financial Management, Concise Edi...FinanceISBN:9781285065137Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning
Fundamentals of Financial Management, Concise Edi...FinanceISBN:9781305635937Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage Learning