Accounting A local education institution's budget for 2020/21 for meals was £944,622. During 2020/21 it is estimated that 500 students will require 3 meals a day for 196 days each at an average cost of £3.20 per meal. What should be the meals budget for 2021/22 applying zero- based budgeting, inflation is estimated at 3%?
Q: Samsung, Nokia and Apple are partners who share P&L as follows: 45%:15%: 40%, respectively. The…
A: In case of liquidation of Partnership, the cash is distributed in the following sequence:…
Q: ABC and XYZ have been operating an accounting firm as partners for a number of years and at the…
A: Given, Beginning capital balance of ; ABC = 85,000 XYZ = 70,000 Additional capital by ; ABC = 10,000…
Q: On 30 June 2009, M Ltd estimates that it will incur warranty costs of $150 000 in the next financial…
A: Solution Concept Warranty expense and liability The warrantty liability is the…
Q: Beresford Inc. purchased several investments in debt securities during 2020, its first year of…
A: Introduction: A balance sheet is one of the financial statements that cover the assets, liabilities,…
Q: Which of the following is NOT true about the statement of financial position of a partnership? The…
A: Statement of financial position is a part of financial statements in which assets and liabilities…
Q: Carlo invested the following in the partnership being formed with Jamie: Cash of P60,000; ● . Land…
A: In consideration of the above information, Cash is P60,000; P200,000 in land having a P410,000…
Q: LA Company, which plans to sell 200,000 units of finished product in July, anticipates a growth rate…
A: The production budget is prepared to estimate the number of units to be produced during the period.
Q: Hey, Could you explain how you arrive at the depreciation as follows: Motor Vehicle 25,000…
A: The depreciation on the above assets is calculated on the basis of the different asset classes and…
Q: explain the roles of integrated reporting in the following aspects: a. Providing information that is…
A: Integrated reporting is conducted by organization to communicate strategy, plan, Governance or…
Q: Which of the following taxpayers cannot claim deductions from gross income? General…
A: Gross income refers to the income which is earned from the wages, dividends, business income etc. In…
Q: At the close of business on December 31, 2021 Tempest Corp pays a $80,000 premium to purchase a…
A: Introduction: The balance sheet is one of the 3 financial statements that are required for…
Q: Answer the following : What is Special Journals? In your own words describe and explain clearly and…
A: Special journal is the journal which helps to record the financial transactions, In this each…
Q: AS 1 was reissued on _____. (MM/DD/YYY
A: solution concept IAS refers to international accounting standard IAS is issued by international…
Q: Current Attempt in Progress Nieto Company's budgeted sales and direct materials purchases are as…
A: Cash sales for March = 250000×30% = $75000
Q: You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door…
A: Flexible budget is the one that shows the estimates relating to both the fixed and variable costs.
Q: True or false: The breakeven point in dollars can be computed by dividing the contribution margin…
A: Solution Concept Breakeven point is the point at which the contribution generated covers the fixed…
Q: Which of these employees benefits is subject to fringe benefit tax? Fringe benefits to rank and…
A: Fringe Benefit Tax: A fringe benefit is any no-wage payment or benefit that is offered to workers by…
Q: .Financial assets at amortized costs include only debt securities. 5.Equity security represents an…
A: As per our protocol we provide solution to the one question or to the three sub-parts only and you…
Q: P 205,000 67,900 36.500
A: It is given that the information of Brother Paul's Burger House.
Q: Which factor should be considered appropriate to have rotation of auditors Select one: a. A…
A: The auditor is the person who audits the books of the company. The auditor verifies all the reports…
Q: he answer choices are listed as follows: A. 12.91% B. 12.88% C. 11.38% D.
A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…
Q: 1. A company has a sales plan for 2020 based on the estimated end of the month as follows: Month…
A: The accounts receivables represent the amount due from customers for sales made by the company on…
Q: after she is told. Determine the cost of executing the assignment by each way based solely on salary…
A: The costs which are associated with the cost of work which are going to be done by the employee…
Q: Prior to the creation of a partnership, the sole proprietor must first re-evaluate or adjust its…
A: Re-evaluation or Adjustment in Assets or Liability: To determine whether or not there was a net gain…
Q: A partnership agreement may NOT include O the method of allocating profits and losses the purpose of…
A: A partnership is an agreement between two or more partners where partners are agreed to work…
Q: In 1986, the AICPA broke forensic accounting into two broad areas: Damages and taxation.…
A: Forensic Accounting: Accounting and investigation methods are used in forensic accounting, which is…
Q: Johnson Corp. has two divisions, Division A and Division B. Division B has asked Division A to…
A: Introduction: Transfer pricing is the pricing of products and services sold between controlled (or…
Q: How much is the capital of A as of December 31 if net income for 2021 is ₱693,000?
A: The determination of Capital of A as of 31 December is shown hereunder. Net income for 2021 P…
Q: Exercise No. (7) prepare income sta Fixed Deposit Savings Deposit Current Account: Money at call and…
A: Balance Sheet- The balance sheet is a financial statement that shows an organization's assets,…
Q: directed towards future and present, b) follows standards and norms, c) helps managers in decision…
A: Financial statements comprises of the following: Balance Sheet Income statement Statement of Cash…
Q: C. 6. The company CEO notes the following changes in ratios: Last Year Current 7.3 4.2 Inventory…
A: The question is related Anaysis of the Ratio given. 1. Inventory Turnover Ratio is calculated with…
Q: A 65 year-old man is retiring and can take either $500,000 in cash or an ordinary annuity that…
A: Solution Concept Time value of money As per the concept of time value of money , the value of amount…
Q: share in net income both as an industrial and as a capitalist partner
A: Capitalist- industrial partner Classes of Partners. The one who contributes money or property to the…
Q: Daxter Bakers is trying to decide whethe Should keep its existing bread-making machi inological…
A: Let us first understand the meaning of opportunity cost Opportunity cost is the benefit foregone…
Q: Parent owns 100% of subsidiary. Subsidiary has bonds payable to third parties of $5,500,000., plus…
A: Introduction When bonds of affiliates are purchased from non-affiliates, from the viewpoint of…
Q: Q.3.2 Record the packaging machine as it would appear in the asset register at 31 December 2021…
A: ASSET REGISTER VEHICLE : FORD ECOSPORT DATE COST DEPRECIATION ACCUMULATED DEPRECIATION CARRYING…
Q: CABLES General Professional Partnership, a business formed by Carlo and Jamie, have the following…
A: Partnership is one of the agreement or arrangement between two or more than two persons, in which…
Q: partnership of X, Y and Z provides for the division of net income as follows: i. Y, who manages…
A: In the given problem it is required that calculate balance of capital of Y one of the partner in…
Q: A single taxpayer has the following information for 2020: AGI State income taxes State sales tax…
A: Introduction: A taxpayer is any individual or corporate organization that pays taxes to the federal,…
Q: nstruction: Do its general ledgers, trial balance, and worksheet Date Particulars Debit…
A: The general ledger is the ledger that accounts for each and every transaction. The balance of these…
Q: n insurance company has £350 million in capital availabl ent portfolio of this bank during 12-month…
A: The answer has been mentioned below.
Q: can u help me finish the other sub parts from 4-8
A: Formula used in required calculation: Total Assets Turnover = Net Sales / Total Assets Profit Margin…
Q: The Accounting Cycle of a Partnership and sole proprietorship are generally similar EXCEPT for:…
A: The accounting cycle includes those steps that are repeated after end of each accounting period. 1.…
Q: regardin on how to get income po... if you'll compute it the result will turn out 63,000 but on your…
A: Net Income = (Profit - Interest) x (100 - Tax rate) Net Income = (140,000 - 50,000) x (100 - Tax…
Q: What are the 7 advantages of using a special journal? give brief explanation of the each.
A: Introduction:- The special journal is the general entries of such transactions that are required to…
Q: On January 1, 2021, Kobe, Lebron, and Michael formed a partnership with respective capital…
A: partnership is form of business where two or more person join their hands in order to start the…
Q: Nichols Enterprises has an investment in 31,500 bonds of Elliott Electronics that Nichols accounts…
A: Securities-available-for-sale represents the portion of investment made by the company with the…
Q: recession, then EBI
A: The repurchase of shares by using debt will decrease the shares outstanding and will increase the…
Q: Compute the gross earnings of each employee.
A: Gross earnings to an employee are the earnings which are earned by the employee from the company or…
Q: Posa Hotels, Inc., has a sixth night free policy. Every sixth night a guest stays at the hotel is…
A: A journal entry is getting used to file a commercial enterprise transaction in an organization's…
Step by step
Solved in 2 steps
- 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?Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.Budgeted income statement and supporting budgets The budget director of Jupiter Helmets Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for May: Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to be $4200. and work in process at the end of May is desired to be $3800.
- Relevant 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 yearCash 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 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 2019 and 2020: 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: 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 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 2019. 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 all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.
- Eastman, Inc., manufactures and sells three products: R, S, and T. In January, Eastman, Inc., budgeted sales of the following. At the end of the year, actual sales revenue for Product R and Product S was 3,075,000 and 3,254,000, respectively. The actual price charged for Product R was 25 and for Product S was 20. Only 10 was charged for Product T to encourage more consumers to buy it, and actual sales revenue equaled 540,000 for this product. Required: 1. Calculate the sales price and sales volume variances for each of the three products based on the original budget. 2. Suppose that Product T is a new product just introduced during the year. What pricing strategy is Eastman, Inc., following for this product?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)Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.