1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts Total cash disbursements $230,000 $180,000 $260,000 $210,000 $220,000 $330,000 $230,000 $240,000
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
The company’s beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank, at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded.
Required:
Using Schedule 8 as your guide, prepare the company’s cash budget for the upcoming fiscal year.
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- Collections for services rendered in 2nd quarter 60,000 Collections for services rendered in 1st quarter 30,000 Collections for services to be rendered inthe 3rd quarter 40,000 Uncollected billings in 1t quarter 20,000 Uncollected billings in 2d quarter 25,000 How much is the taxable income in the 2nd quarter using cash basis and accrual basis?Problem 4 (Total current assets) Pildesure Company reported the following current assets at year-end: Cash P 5,000,000 Accounts receivable 2,000,000 Inventory, including goods received on consignment P200,000 800,000 Bond investment at fair value through other comprehensive income 1,000,000 Prepaid expenses, including a deposit of P50,000 on inventory to be delivered, in 18 months 150,000 Total current assets P 8,950,000 Cash in general checking account P 3,500,000 Cash…Question 47 Summary balance sheet data for Greener Gardens Co. is shown below (in thousands of dollars). The company is in a highly seasonal business, and the data show its assets and liabilities at peak and off-peak seasons: Peak Off-Peak Cash $ 50 $ 30 Marketable securities 0 20 Accounts receivable 40 20 Inventories 100 50 Net fixed assets 500 500 Total assets $690 $620 Payables and accruals $ 30 $ 10 Short-term bank debt 50 0 Long-term debt 300 300 Common equity 310 310 Total claims $690 $620 From this data we may conclude that a. Greener Gardens' current asset financing policy calls for exactly matching asset and liability maturities. b. Greener Gardens' current asset financing policy is relatively aggressive; that is, the company finances some of its permanent assets with short-term discretionary debt. c. Without cash flow data, we cannot determine the…
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- Line Item Description 20X1 20X2 Current assets: Accounts receivable $750,000 $582,500 Inventories 300,000 320,000 Current liabilities: Wages payable 700,000 515,000 Davis CompanyIncome StatementFor the Year Ended December 31, 20X2 Line Item Description Amount Amount Revenues $3,000,000 Cost of goods sold 1,920,000 Gross margin $1,080,000 Operating expenses Depreciation 270,000 Operating income $ 810,000 Other revenues and expenses Gain on sale of equipment 100,000 Interest expense 10,000 90,000 Net income $ 900,000 Required: Compute operating cash flows using the indirect method.q1. The Sisyphus Inc’s (SSY) Company’s year end financial statements reported the following (in millions): Revenue $35,764 Cost of Goods Sold $22,500 Other expenses (excluding COGS) $8,634 What did SSY report for net income for the year end? Group of answer choices $66,898 million $13,264 million $13,866 million $21,898 million $4,630 million q2. The Sisyphus Inc’s (SSY) Company’s annual statement of cash flows reported the following (in millions): Net cash from financing activities $63,864 Net cash from investing activities -62,512 Cash at the beginning of the year 13,152 Cash at the end of the year 18,948 What did SSY report for “Net cash from operating activities” during the year? Group of answer choices $71,220 million cash inflow None of the above $4,444 million cash outflow $4,444 million cash inflow $71,220 million cash outflow q3. The year-end balance sheet of Sisyphus Inc. reports total assets…Year Net cashflows 0 -575,000 1 £125,000 2 £248,000 3 £176,000 4 £146,000