11. You have a net income of $40000/year. Your expenses include the following: . . . . Rent: $800/month Insurance: $225/semi-annually Car Payment: $315/month Car Expenses: $1000/year RRSP: $50/month Entertainment: $50/week Cell Phone: $75/month Food: $500/month a) Create a budget. b) Modify the budget to include a savings plan of $100/week. c) You paid off your car and have decided to buy a house. Your mortgage payment is now $1050/month. Modify the budget to reflect this new financial plan.

11. You have a net income of $40000/year. Your expenses include the following: . . . . Rent: $800/month Insurance: $225/semi-annually Car Payment: $315/month Car Expenses: $1000/year RRSP: $50/month Entertainment: $50/week Cell Phone: $75/month Food: $500/month a) Create a budget. b) Modify the budget to include a savings plan of $100/week. c) You paid off your car and have decided to buy a house. Your mortgage payment is now $1050/month. Modify the budget to reflect this new financial plan.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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Carmichael Corporation is in the process of preparing next years budget. The pro forma income statement for the current year is as follows: Required: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a 60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
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. 156,000
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A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
What is the amount of budgeted cash payments if purchases are budgeted for $420,000 and the beginning and ending balances of accounts payable are $95,000 and $92,000, respectively?
A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent inflation rate. Listed below are selected items from next years budget before the adjustment. After adjusting for the 3 percent inflation rate, what is the companys total budget for the selected items before taxes for next year? a. 858,150 b. 860,412 c. 810,971 d. 858,971
Each unit requires direct labor of 4.1 hours. The labor rate is $13.75 per hour and next years production is estimated at 75,000 units. What is the amount to be included in next years direct labor budget?
As a manager responsible for an operating budget, you will usually be expected to compare your department's actual expenses to your budgeted expenses as well as to its performance in prior periods. True FalseMy nephew has promised to repay a loan by making $1,200.00 payments in April of each of the next 5 years. Using the Present Value Table found in Appendix 13-A on page 141, and assuming an interest rate of 5%, what is the value of these payments? a. $3,917.04 b. $4,329.40 c. $5,195.28 d.
The following information is applicable to Shine Wholesalers for the year 2020: Budgeted sales:July R105 000August R132 000September R165 000 In October 2020, sales are expected to increase by 20% relative to sales in September 2020. Cash sales amount to 20% of total sales. 55% of all credit sales are collected in the month of sale, with a discount of 10% to those debtors who pay during thistime. The outstanding credit sales are collected in equal instalments over the next two months. There are no bad debts. Purchases of raw materials are expected to be sufficient to meet 60% of the total sales for the next month. The companynormally settles half of its creditors in the month following the month of purchase. The remaining creditors are paid twomonths after the month of purchase. Wages and salaries are paid to employees at the end of the month in which they are earned. Wages and salaries areexpected to be:June R22 200July R20 500 Required:Prepare a cash budget for Shine…
3. What will be the budgeted ‘Salaries’ expenses for 2020 ($)? Note: The Answer field only accepts numbers. Thus, do not include $ or commas when you type your answer. Type your answer as a whole number (e.g., 200000). • Assume you are working on budgeting for the room department of your hotel. • Assume the hotel’s ‘Room Revenue (Sales)’ was $1,640,000 during 2019. Based on the lodging forecast report, you expect the ‘Room Revenue (Sales)’ to increase by 3.7% next year. • Assume the ‘Guest Supplies’ expenses (variable costs) from the room department was $246,000 during 2019. For 2020, this variable cost will remain at the same percentage of the Room Revenue (Sales) as experienced in 2019. • Assume the ‘Salaries’ expenses (fixed costs) from the room department was $280,000 during 2019. For 2020, this fixed cost will increase by 2% due to the expected increase in living expenses in this area.
The following information pertains to Omega Projects Ltd for the three months ended 31 December 2020. Actual Budgeted October November DecemberRevenue (20% for cash and 80% on credit) R360 000 R380 000 R400 000Purchases (10% for cash 90% on credit) R240 000 R280 000 R320 000Salaries and wages paid R40 000 R60 000 R60 000Cash expenses R24 000 R28 000 R32 000Depreciation R2 000 R2 000 R2 000 Additional information:1. It is expected that debtors will settle their accounts as follows:• 20% in the month of invoice• 70% in the month after the month of invoice, and• 5% in the second month after the month of invoice.• The remaining 5% is usually written off as bad debts.2.…
As a manager responsible for an operating budget, you will usually be expected to compare your department's actual expenses to your budgeted expenses as well as to its performance in prior periods. True FalseMy nephew has promised to repay a loan by making $1,200.00 payments in April of each of the next 5 years. Using the Present Value Table found in Appendix 13-A on page 141, and assuming an interest rate of 5%, what is the value of these payments?