37 Additional details: 38 Below you will see yellow data boxes labeled with the letters A through M. Your instructor will provide your group with 39 the data to enter into these boxes. This data set is unique to your group, so make sure you enter the data correctly. 40 41 $575 1,200 bicycles in Bike Inventory at the end of 2021 with a value of $280,000 Average estimated selling price per electric bike i There are 42 43 44 45 • For each quarter, it is estimated that 75% of sales will be cash and 46 of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter. Credit sales from Q4 2021 were 47 $430,000 48 49 50 51 52 At the end of each quarter, CBH Company wishes to have units in Bike Inventory. At the end of 2022 assum 60% of next quarters estimated sales 2,000 bikes are required in ending inventory 25% will be credit sales. Assume operating expenses occur evenly throughout the year and are all paid in cash. For each quarter, 70% of Bike purchases are paid for in cash in the quarter of 30% are paid in the following quarter. Total bike purchases in $510,000 The expected average purchase price of a bike in 2022 is $60,000 in dividends in Q4 2022. the purchase and Q4 2021 were CBH Company will pay 53. The cash balance in the bank at the end of 2021 S 10,000. CBH Company wishes to maintain a 54 minimum cash balance of $10,000 in the bank for each quarter. 55 • Budgeted 2022 sales volumes in units for each quarter are: 56 Q1 2000 Q2 2450 Q3 57 58 4100 Selling and Administration expenses for the budgeted year are as follows: Sales Wages: Q4 233 buying price 3300 $ 375
37 Additional details: 38 Below you will see yellow data boxes labeled with the letters A through M. Your instructor will provide your group with 39 the data to enter into these boxes. This data set is unique to your group, so make sure you enter the data correctly. 40 41 $575 1,200 bicycles in Bike Inventory at the end of 2021 with a value of $280,000 Average estimated selling price per electric bike i There are 42 43 44 45 • For each quarter, it is estimated that 75% of sales will be cash and 46 of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter. Credit sales from Q4 2021 were 47 $430,000 48 49 50 51 52 At the end of each quarter, CBH Company wishes to have units in Bike Inventory. At the end of 2022 assum 60% of next quarters estimated sales 2,000 bikes are required in ending inventory 25% will be credit sales. Assume operating expenses occur evenly throughout the year and are all paid in cash. For each quarter, 70% of Bike purchases are paid for in cash in the quarter of 30% are paid in the following quarter. Total bike purchases in $510,000 The expected average purchase price of a bike in 2022 is $60,000 in dividends in Q4 2022. the purchase and Q4 2021 were CBH Company will pay 53. The cash balance in the bank at the end of 2021 S 10,000. CBH Company wishes to maintain a 54 minimum cash balance of $10,000 in the bank for each quarter. 55 • Budgeted 2022 sales volumes in units for each quarter are: 56 Q1 2000 Q2 2450 Q3 57 58 4100 Selling and Administration expenses for the budgeted year are as follows: Sales Wages: Q4 233 buying price 3300 $ 375
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
Transcribed Image Text:B C
37 Additional details:
38 Below you will see yellow data boxes labeled with the letters A through M. Your instructor will provide your group with
39 the data to enter into these boxes. This data set is unique to your group, so make sure you enter the data correctly.
40
45
46
54
55
56
A
$575
41 Average estimated selling price per electric bike is
42. There are
43
1,200 bicycles in Bike Inventory at the end of 2021 with a value of $ 280,000
At the end of each quarter, CBH Company wishes to have
units in Bike Inventory. At the end of 2022 assum
61
62
63
64
65
66
67
68
69
70
71
72
73
For each quarter, it is estimated that
Of the credit sales, 80% pay in the quarter of the sale and 20% pay in the following quarter.
47 Credit sales from Q4 2021 were $430,000
74
75
76
77
78
79
80
D
48. Assume operating expenses occur evenly throughout the year and are all paid in cash.
49 For each quarter,
70% of Bike purchases are paid for in cash in the quarter of
50
the purchase and
51
Q4 2021 were
30% are paid in the following quarter. Total bike purchases in
$510,000 The expected average purchase price of a bike in 2022 is $
$60,000 in dividends in Q4 2022.
52 CBH Company will pay
53. The cash balance in the bank at the end of 2021 i S 10,000. CBH Company wishes to maintain a
minimum cash balance of $10,000 in the bank for each quarter.
4100
57. Selling and Administration expenses for the budgeted year are as follows;
58
Sales Wages:
59
60
E
Fixed Costs:
F
Budgeted 2022 sales volumes in units for each quarter are:
01
2000
Q2
2450
Q3
Advertising
Computer costs
Depreciation
Office Supplies
Printing
Insurance
Property taxes
Rent
Utilities
Total Fixed Costs
2021
2020
2019
2018
60% of next quarters estimated sales
2,000 bikes are required in ending inventory
75% of sales will be cash and
Accounting & professional services
Administrative Salaries
$
12585
145130
12905 164975
11385 174225
8175
137145
H
Sales wages are a mixed cost (salary and commissions). CBH Company plans on estimating these casts for 2022
based on actual historical data using the high-low method.
Here are the total sales in units and the total sales wages expense for the last 4 years.
Units sold
$
1800
77000
9000
I
4200
35000
2300
1400
1200
500
25% will be credit sales.
20000
3000
155400
Q4
3300
233 buying price
Cost difference
Units difference
375
K
27830
4730
L
M
N
0
Transcribed Image Text:3
4
5
6
7
A
Beginning cash balance
Add: Receipts
8
9 Collections from Customers
10 Total receipts:
11 Total available cash:
12 Less: Disbursements
13
Bike Purchases
14 Selling and Administrative expenses
15 Purchase of new store
16 Income Tax expense
17 Dividends
18 Total disbursements:
<
Excess (deficiency) of available cash over
cash disbursements
19
20 Financing
21 Previous period borrowings
22
Interest Costs
23 Excess (deficiency) after interest payment
24 Amount available to pay down loan
25 Add: Current period borrowings
26
Less: Repayments
27 Ending cash balance
28
CASH BUDGET
for the year ending 31st December 2022
1
2
10,000
$
$
$
B
> Eget Purchases Budget
78,000
975
Cost of Sales
D
3
E
4
F
Year
G
H
I
J
without considering $10,000 minumum
considering $10,000 minimum balance.
Selling & Admin. budget Income Statement CVP Income Statement
K
L
M
N
Cash Budget Worksheets
O
P
CVP Analysis
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education