1. Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. 2. Assume that the company will prepare a budgeted statement of financial position as of September 30. Compute the accounts receivable as of that date.
Q: Use the following information to determine the ending cash balance to be reported on the month ended…
A: Cash budget was used by the entity to estimate its cash inflows and outflows for the given period of…
Q: Jasper Company has sales on account and for cash. Specifically, 61% of its sales are on account and…
A: Formula: Cash collection = Credit sales x cash collection %
Q: les (sales on account) for each of the months January to March. ▪ A schedule of expected cash…
A: The preparation is given as,
Q: 5. Prepare a budgeted balance sheet as of July 31st. 6. Calculate the estimated accounts receivable…
A: 5) Millen Corporation Budgeted Balance Sheet As at July 31 Assets Cash…
Q: PLEASE DO EACH PART SEPARATELY (using ms word) ( a) The business needs to have a sense of its future…
A: Cash budget of the business means future estimates of cash flows, which includes expected cash…
Q: (a) July to September. Prepare a schedule of expected cash collections for sales for each of the…
A:
Q: treasurer of U Co. has accumulated the budget information presented in the table for the months of…
A: Cash Budget : Cash budget is the statement showing the estimates of cash receipt and cash payments…
Q: A schedule of budgeted cash collections for the trade receivables (sales on account) for each of the…
A: A budget is defined as an estimate of revenue income and expenses for a set period of time. The…
Q: The beginning balance of Accounts Receivable amounted to P 10,000 which was fully paid in April. 80%…
A: A cash budget is prepared to estimate the total cash received and total cash disbursement. It is…
Q: The business needs to have a sense of its future cashflows and therefore requires the preparation of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Prepare the cash budget with the projected income statement of ABC Company from March to June
A: Cost of Goods Sold = 100000 Gross Profit = 20% Based on Sales Sales = 20% i.e 1/5 on Sales i.e. 1/4…
Q: Mercury Shoes Inc. Cash Budget For the Three Months Ending August 31 June July August Estimated cash…
A: 1. Cash Budget - Cash Budget is the estimation made by the organization for the future period based…
Q: Use the following information: Beginning cash balance on March 1, $77,000. Cash receipts from…
A: Cash budget in the business shows all cash receipts and all cash payments that are being made by the…
Q: The following information was taken from Vaughn Manufacturing’s cash budget for the month of July:…
A: Cash Budget: A cash budget is an estimate of the cash flows that are expected to be generated by an…
Q: Use the following information: Beginning cash balance on March 1, $78,000. Cash receipts from…
A: Meaning of Cash Budget A cash budget is an estimation of the cash flows of a business over a…
Q: Please help with as much as possible
A: As you have posted a question with multiple parts, the solution to the first question is being…
Q: Long & Short Company developed the following data for the preparation December 2021 budget:…
A: C)
Q: The management accountant at Miller Merchandising & More, Odail Russell is in the process of…
A: Budgeting is an estimates of cash inflows and outflows prepared by an entity for its future…
Q: (a) The business needs to have a sense of its future cash flows and therefore requires the…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: Using this data, along with your answer to part (1) above, prepare a cash budget in good form for…
A: A cash budget is a company's estimation of cash inflows and outflows over a specific period of time,…
Q: Prepare the cash budget for January and February of Gilmore Company using the following data:…
A: Answer - Cash Budget - A cash budget is a document produced to help a business manage their cash…
Q: Required: (a) The business needs to have a sense of its future cashflows and therefore requires the…
A: Cash budget of the business means expected cash inflows and cash outflows of the business during the…
Q: Prepare a master budget for the three-month period ending June 30 that includes a schedule of…
A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is…
Q: 1. Prepare a monthly cash budget and supporting schedules for May, June, and July. Input all amounts…
A: Cash budget is a budget that is prepared to estimate the cash inflows and cash outflows for a…
Q: (a) The business needs to have a sense of its future cash flows and therefore requires the…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: Assume a company is preparing a budget for its first two months of operations. During the first and…
A: The cash budget is prepared to record cash receipts and cash payment during the period and finally…
Q: Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the…
A: Cash collections refer to the amount of cash collected from the customers on sales and from the…
Q: PLEASE USE MS WORD TO DO THE THREE PARTS. WITH THE LAST PART HAVING OCTOBER NOVEMBER DECEMBER AND A…
A: Cash budget of the business shows all cash inflows and cash outflows during the period with opening…
Q: Jasper Company has sales on account and for cash. Specifically, 70% of its sales are on account and…
A: Given information is: Jasper Company has sales on account and for cash. Specifically, 70% of its…
Q: Puckett Company has provided the following budget information for the first quarter of 2018:…
A: A budget is an estimate showing the expected values of different cost parameters like sales,…
Q: Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the…
A: 1. Cash collections - Cash Collection is the collection made from the sales budget estimated in the…
Q: Required: (a) The business needs to have a sense of its future cash flows and therefore requires…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Assume a company is preparing a budget for its first two months of operations. During the first and…
A: Solution: Cash collections for the second month = cash sales for second months + credits sales for…
Q: Required: (a) The business needs to have a sense of its future cash flows and therefore requires the…
A: A statement of estimation of cash inflows into and outflows from a business for a specific period is…
Q: (a) The business needs to have a sense of its future cash flows and therefore requires the…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Required: 1. Using the information provided, calculate or prepare the following: a. The budgeted…
A: A budget is an estimation of revenue and expenses over a specified future period of time and is…
Q: a) The business needs to have a sense of its future cashflows and therefore requires the preparation…
A: Cash budget: It estimate Cash Inflow and Cash outflow of the organization over Particulars Period.…
Q: The business needs to have a sense of its future cashflows and therefore requires the preparation of…
A: The first question is answered for you. Please resubmit specifying the question number you want…
Q: 1. Prepare a schedule of expected cash collections from sales, by month and in total, for the sec…
A: Accounts receivable: The amount of money to be received by the company for the sale of goods and…
Q: Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the…
A: Formula: Cash sales = Total sales x cash sales percentage Multiplying total sales with cash sales…
Q: a. Prepare a Schedule of Expected Cash Collections for November and December. b. Prepare a…
A: The question is based on the concept of Budget Accounting.
Q: Required: Prepare the following: A schedule of budgeted cash collections for trade receivables for…
A: Cash collection Budget: The Schedule of expected cash collections from customers shows the budgeted…
Q: (a) The business needs to have a sense of its future cashflows and therefore requires the…
A: Part (a) A schedule of budgeted cash collections for trade receivables (sales on account) for each…
Q: (a) The business needs to have a sense of its future cash flows and therefore requires the…
A: Need to prepare Budgeted Cash Collection for Trade receivable Budgeted Cash Collection for Trade…
Q: (a) The business needs to have a sense of its future cashflows and therefore requires the…
A: Part (a) Statement of Budgeted Cash Collection from Sales on Account Particulars August…
Q: The business needs to have a sense of its future cash flows and therefore requires the preparation…
A: The question is related to Cash Budget. Cash Budget is summary of cash receipts and cash payments…
Q: Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the…
A: The calculation of expected cash collection is based on the total sale figure obtain from sales…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were sold in January for $10,000 and $4,500 in May. Dividends of $4,500 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the yearRanger Industries has provided the following information at June 30: Other information: Average selling price, 196 Average purchase price per unit, 110 Desired ending inventory, 40% of next months unit sales Collections from customers: In month of sale20% In month after sale50% Two months after sale30% Projected cash payments: Inventory purchases are paid for in the month following acquisition. Variable cash expenses, other than inventory, are equal to 25% of each months sales and are paid in the month of sale. Fixed cash expenses are 40,000 per month and are paid in the month incurred. Depreciation on equipment is 2,000 per month. REQUIREMENT You have been asked to prepare a master budget for the upcoming quarter (July, August, and September). The components of this budget are a monthly sales budget, a monthly purchases budget, a monthly cash budget, a forecasted income statement for the quarter, and a forecasted September 30 balance sheet. The worksheet MASTER has been provided to assist you. Ranger Industries desires to maintain a minimum cash balance of 8,000 at the end of each month. If this goal cannot be met, the company borrows the exact amount needed to reach its goal. If the company has a cash balance greater than 8,000 and also has loans payable outstanding, the amount in excess of 8,000 is paid to the bank. Annual interest of 18% is paid on a monthly basis on the outstanding balance.
- Relevant data from the operating budget of The Framers are: Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May The beginning cash balance was $50,000 and a required minimum cash balance is $10,000. Prepare a cash budget for the first two quarters of the year.CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2014 and 2015: May 2014 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360.000 November 360,000 December 90,000 January 2015 180.000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2014 90,000 June 90,000 July 126,000 August 882.000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses arc S2,700 a month. Income tax payments of 63,000 arc due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2014. b. Prepare monthly estimates of the required financing or excess funds that is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 130 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.Cash collections for Renew Lights found that 65% of sales were collected in the month of sale, 25% was collected the month after the sale, and 10% was collected the second month after the sale. Given the sales shown, how much cash will be collected in March and April?
- CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2016 and 2017. May 2016 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2017 180,000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale. 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2016 90,000 June 90,000 July 126,000 August 882,000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depredation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2016. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if ail financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.Cash budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent 12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of June 1 include cash of 42,000, marketable securities of 25,000, and accounts receivable of 198,000 (150,000 from May sales and 48,000 from April sales). Sales on account in April and May were 120,000 and 150,000, respectively. Current liabilities as of June 1 include 13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 24,000 will be made in July. Mercury Shoes regular quarterly dividend of 15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of 40,000. Instructions Prepare a monthly cash budget and supporting schedules for June, July, and August. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent 50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?