Beal, Inc. provided the following information: April Projected merchandise purchases $65,000 $75,000 ● March Beal pays 40% of merchandise purchases in the month purchased and 60% in the following month. General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Beal pays operating expenses in the month incurred. Calculate Beal's budgeted cash disbursements for May. Budgeted cash disbursements $ May $80,000
Q: A sales invoice included the following information: merchandise price, $8,900; terms 1/10, n/eom;…
A: The net purchases is calculated as gross purchases less discount. and add freight charges. The cash…
Q: Flint Company has an investment in 9%, 14-year bonds of Soto Company. The investment was originally…
A: The impairment refers to the reduction in the value of the investment or asset. The reduction must…
Q: The tendency for managers to compare the performance of divisions within a company to each other…
A: The tendency for managers to compare the performance of divisions within a company to each other…
Q: Baden Corporation entered into a lease agreement for 100 photocopy machines for its corporate…
A: Finance LeaseTreatment for accounting purposes: A finance lease is treated as a purchase for…
Q: Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data…
A: DIRECT LABOUR COST VARIANCE Direct Labour Cost Variance is the difference between the actual direct…
Q: Warner Company's year-end unadjusted trial balance shows accounts receivable of $106,000, allowance…
A: Accounts uncollectible are receivables, loans, or other debts that have almost no chance of being…
Q: NAME Barney, R. S. Fisk, M. C. Hayes, W. O. Lee, L. B. Parks, S. J Tempy, E. B. Assume that the…
A: Payroll taxes are defined as the amounts collected by the government or revenue collection authority…
Q: Prepare the statement of cash flows for 2024 using the direct method
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…
Q: The general ledger of AXM, Inc., provides the following information relating to purchases of…
A: Cost of goods sold: it is the cost of the goods that are sold by the companyCost of goods purchased:…
Q: What would you consider to be a diagnostic analytics technique in management accounting? Multiple…
A: Hi studentSince there are multiple questions, we will answer only first question.Management…
Q: a) List THREE (3) main financial statement. b) Describe FIVE (5) main components in financial…
A: Financial statements are prepared to know the financial position of the entity during a particular…
Q: Atimonan Company received a bill for P27,440 from a VAT service provider. The payment for the…
A: A taxpayer is payer, who is obliged to pay tax under respective tax laws of VAT of the country in…
Q: Ex 3. On December 31, 2026, Orange Mountain Co. grants its employees options to purchase 1,000…
A: According to the question given, we need to prepare the journal entries to record the employees'…
Q: Tyres Ltd sells tyres on credit only. The management of the company estimated that it could increase…
A: Credit period, also known as payment terms or credit terms, refers to the duration of time that a…
Q: Marigold Company was organized on January 1. During the first year of operations, the following…
A: The cost incurred on the capital asset is generally capitalized, which means these costs are added…
Q: The stockholders’ equity section of TVX Company on February 4 follows. Common stock—$5 par value,…
A: Note: When the stock dividend is issued then retained earnings are decreased by the market value of…
Q: The account balances of Wildhorse Company at December 31, 2017, the end of the current year, show…
A: The allowance for doubtful accounts is created to reocrd estimated bad debt expense for the period.…
Q: Colonial Corporation uses the retail method to value its inventory. The following information is…
A: Cost-to retail-ratioThe cost-to-retail ratio is the ratio that compares the cost price of the goods…
Q: Quaker State Incorporated offers a new employee a single-sum signing bonus at the date of…
A: PV = cashflow/(1+i)^nwhere i = 10% and n is the number of periods.
Q: Rida Incorporated is preparing its direct materials budget for the second quarter. It budgets…
A: This shows the quantity of materials to be purchased during the budget period.The purchase budget…
Q: In June, Blackfly Ltd. received a $7,000 cash payment for work performed & billed the previous…
A: Net Income:Net income is the amount which tells the overall profitability of a company and can be…
Q: Crane Merchants reported the following on its income statement for the fiscal years ended December…
A: The ratio analysis helps to analyze the financial statements on the basis of the various elements of…
Q: Mike Derr Company expects to earn 12% per year on an Investment that will pay $616,000 six years…
A: Answer :Present value=?=?[1/(1+ rate) ^time]Future value = $616,000Rate = 8%Time = 7 yearsPresent…
Q: Requirement 3. Prepare the month ended January 31, 2025, single step income statement of Water Way…
A: Income statement is one of the financial statement of the business. Under this, all revenues and…
Q: Cost of Production Report The debits to Work in Process-Roasting Department for Morning Brew Coffee…
A: Cost Production Report help to assign the costs incurred to the units transferred and ending…
Q: Windsor Inc., a fertilizer company based in Alberta, had the following information on its financial…
A: Asset turnover ratio is the ratio between sales and average total assets. It is calculated by…
Q: It costs Chattanooga Company per unit are ($14 variable and $8 fixed) to produce its product, which…
A: Variable costs are those costs which changes along with change in activity level. Fixed costs do not…
Q: Sarasota Company uses the gross profit method to estimate Inventory for monthly reporting purposes.…
A: COST OF GOODS MANUFACTUREDCost Of Goods Manufactured is the cost which is Directly or Indirectly…
Q: Cost of Goods Sold Budget Delaware Chemical Company uses oil to produce two types of plastic…
A: A budget is a written record of an organization's future revenue, cost, and expenses. It gives an…
Q: which of the following expenses is properly reported on commissions and fees line of Schedule C…
A: Schedule C is a tax form used throughout the United States by self-employed individuals, sole…
Q: Power Limited, a manufacturer and supplier of special bulbs/ globes, was awarded a government grant…
A: A government grant is money given by a government agency to a private individual or group to finish…
Q: When equipment is sold or abandoned, the the books on that particular asset. gross value and…
A: The business has two options for getting rid of the depreciated assets: abandoning them or selling…
Q: Becker Bikes manufactures tricycles. The company expects to sell 550 units in May and 680 units in…
A: The overhead cost comprises both variable and fixed elements. The fixed overhead cost remains…
Q: Green Company uses activity-based costing and reports the following. The company budgets 500 setups,…
A: ACTIVITY BASED COSTINGActivity Based Costing is a powerful tool for measuring…
Q: 6. Sims Company reported net income for 2022 in the amount of $70,000. During 2022, Sims declared…
A:
Q: Problem: Module 9 Textbook Problem 9 Learning Objective: 9-6 Explain why individuals once again can…
A: A sole proprietorship is an unincorporated company with just one owner, who is responsible for…
Q: he standard cost of product 2525 includes 4.10 hours of direct labour at $14.40 per hour. The…
A: Labor Price variance = It means difference between standard rate and actual rate of actual labor…
Q: 24. Roman Inc. sells computer systems. Roman leases computers to Rally Company on January 1, 2021.…
A: Lease is considered an act in which the lawful owner of the asset agrees to provide the asset to…
Q: Sales Cost of goods sold Gross profit Operating expenses Net income Year 1 $ 411,000 268,000 $…
A: Common size income statements represent the line items of income statement as a percentage of sales.…
Q: Support department cost allocation-reciprocal services method Temple Lights, Inc. produces Hanukkah…
A: There are various methods through which cost allocation is made from service deaprtment to…
Q: The balance sheets for Dual Monitors Corporation and additional Information are provided below. DUAL…
A: The return on equity is calculated as the net income divided by the average stockholders' equity.…
Q: In Its first year (2021), Barsky Corporation made charitable contributions totaling $70,000. The…
A: The charitable contributions deduction is the deduction which is allowable when the taxpayer makes…
Q: Puget Sound Divers is a company that provides diving services such as underwater ship repairs to…
A: The master budget is the budget which is fixed and can not be changed. The flexible budget can be…
Q: Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is…
A: Making the choice to produce goods or services internally (make) or to buy them from outside vendors…
Q: Sunland Company sponsors a defined benefit pension plan for its employees. The following data relate…
A: According to the question given, we need to prepare the partial balance sheet of SUNLAND…
Q: What is the total Equivalent units accounted for transferred in costs? What is the per EU cost for…
A: Process costing is one of the cost accounting system which is used for manufacturing concerns.…
Q: On April 1, a company declared a cash dividend of $0.13 per common share to the shareholders of…
A: Dvidend is a corporate action taken by the organization to declare and pay part of the profit…
Q: Barron Company granted 8 million of its no par common shares to executives, subject to forfeiture if…
A: A stock option is a financial contract that gives an individual or employee the right, but not the…
Q: Current Attempt in Progress Jack Anderson is unable to reconcile the bank balance at January 31.…
A: Lets understand the basics.Bank reconciliation statement gets prepared in order to match balance as…
Q: All of the questions except the return on equity are correct. It is still saying incorrect for some…
A: This ratio is used to tell how much the investors earned on their income. It is used to measure the…
Please do not give solution in image format thanku
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Ranger 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.Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?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.
- 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?Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?
- Schedule of cash payments for service company Horizon Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: Depreciation, insurance, and property taxes represent 9,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. Seventy percent of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule of cash payments for selling and administrative expenses for March, April, and May.All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?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?
- 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 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?Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of 15.9 million and cost of goods sold of 8.75 million. Advertising is a key part of Coral Seas business strategy, and total marketing expense for the year is budgeted at 2.8 million. Total administrative expenses are expected to be 675,000. Coral Seas has no interest expense. Income taxes are paid at the rate of 40 percent of operating income. Required: 1. Construct a budgeted income statement for Coral Seas Jewelry Company for the coming year. 2. What if Coral Seas had interest payments of 500,000 during the year? What effect would that have on operating income? On income before taxes? On net income?