Beginning cash balance as on March 1, P80,000. Cash receipts from sales P400,000 Budgeted cash disbursements for purchases 250,000. Budgeted cash disbursements for salaries 90,000. Cash repayment of bank loan 30,000. Prepare a cash budget for the month ended on March 31 for Spars Corp

Beginning cash balance as on March 1, P80,000. Cash receipts from sales P400,000 Budgeted cash disbursements for purchases 250,000. Budgeted cash disbursements for salaries 90,000. Cash repayment of bank loan 30,000. Prepare a cash budget for the month ended on March 31 for Spars Corp

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 6BE: Cash budget Pasadena Candle Inc. pays 40% of its purchases on account in the month of the purchase...

See similar textbooks

Related questions

Q: Use the following information to determine the ending cash balance to be reported on the month ended…

A: Cash budget was used by the entity to estimate its cash inflows and outflows for the given period of…

Q: Kayak Co. budgeted the following cash recelpts (excluding cash recelpts from loans recelved) and…

A: Cash budgets are prepared to determine the inflow and outflow of cash during a given period.

Q: Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and…

A: KAYAK COMPANY CASH BUDGET January February March Beginning balance 40,000 $…

Q: Jasper Company has sales on account and for cash. Specifically, 61% of its sales are on account and…

A: Formula: Cash collection = Credit sales x cash collection %

Q: Preparing a financial budget—schedule of cash payments Jefferson Company has budgeted purchases of…

A: Schedule of cash payments Particulars January February Paid for Purchase in January…

Q: Using the following information: a. Beginning cash balance on March 1, $76,000. b. Cash receipts…

A: The question is based on the concept of Cost Accounting.

Q: PRS company is preparing cash budget for the forthcoming year with the following details: 151 2nd…

A: A cash budget is a statement that is prepared so as to estimate the cash position over a specific…

Q: Company A’s cash budget for May is summarized below. Beginning cash balance $12,000 Total…

A: Ending Cash = Beginning Cash + Collections - Disbursements + Financing

Q: Following is Budgeted Data of R Ltd. Prepare Cash Budget for the quarter ended 31st March 2007.…

A: Cash budget is one of the important budget being prepared in business for the purpose of analysing…

Q: Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and…

A: >Cash Budget is prepared as part of budgeting process. >It is usually the final budget…

Q: From the information below, prepare a cash budget for the period from January to April. Expected…

A: The question is based on the concept of Cost Accounting.

Q: Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019:…

A: First we need to calculate cash collection from credit sales. Particulars March April May June…

Q: The opening cash balance on 1st Jan was expected to be Rs. 30,000. The sales budget was as follows:…

A: PLEASE LIKE THE ANSWER YOUR RESPONSE MATTERS Cash Budget January February march…

Q: Zisk Company purchases direct materials on credit. Budgeted purchases are April, $83,000: May,…

A: Notes: Cash Payments in Current Month April = Material Purchases for April X 70% April = $ 83,000 X…

Q: Prepare a schedule of cash payments for operations for January, February, and March.

A: Given information is: Organic Physical Therapy Inc. is planning its cash payments for operations for…

Q: Kayak Co. budgeted the following cash recelpts (excluding cash recelpts from loans recelved) and…

A: Cash budget in business shows estimated or budgeted cash receipts and cash payments for future…

Q: A cash budget is prepared for a retail company. The company requires a minimum cash balance of at…

A: Working: Calculation of missing data in 1st Quarter: Collections from customers = Total cash…

Q: he following is the sales budget for Coore, Inc., for the first quarter of 2019: January…

A: Here in this question, we are required to calculate cash collection schedule. Cash collection…

Q: Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and…

A: Solution: Monthly cash budget for January, February and march is as under:

Q: 3 The accountant for Zachary's Dress Shop prepared the following cash budget. Zachary's desires to…

A: Calculate the missing amounts in the cash budget table as follows: The cash budget is divided into…

Q: Prepare the cash budget for January and February of Gilmore Company using the following data:…

A: Answer - Cash Budget - A cash budget is a document produced to help a business manage their cash…

Q: preparing the cash budget for the business for the fourth quarter of 2021. It is customa business to…

A: Part c) Management cannot achieve the cash balance.

Q: Gibson Medical Clinic has budgeted the following cash flows: January February March Cash…

A: A cash budget is a budget prepared by the company which shows the net cash of the company in the…

Q: Eastern has $12,000 cash at the beginning of June and anticipates $30,000 in cash receipts and…

A: Cash budget refers to estimation of cash flows for the organization over given period of time.

Q: Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and…

A: Lets understand the basics. Management prepares budget for the purpose of determining future profit…

Q: The following budgeted May cash information is available for Salado Corp.: Net after-tax income…

A: Dividends declared will not have any impact on cash flows. Hence it will not be considered while…

Q: The following information is available for Sunland Company for the month of January: expected cash…

A: Cash budget: Cash budget is a tool that indicates the amount of available cash is appropriate or not…

Q: What is the budgeted cash collections for the month of October? 2. What is the budgeted purchases…

A: Budgets are the estimates or forecasts that are made for future period of time. These are the…

Q: Messers Company is preparing a cash budget for February. The company has $20,000 cash at the…

A: Cash budget is a kind of budget which was used to plan for expected disbursements and receipts of…

Q: Schedule of Cash Payments Organic Physical Therapy Inc. is planning its cash payments for…

A: Schedule of cash payments show expected cash to be paid for various expenses in the particular…

Q: Prepare a cash budget for March for Gado Company.

A: Cash Budget defines the estimation of cash inflows and outflow for a period that the entity…

Q: Nyree Company is preparing its budget for the third quarter. The cash balance on June 30 was…

A: The Cash Balance in the cash budget for July will be calculated by adding the budgeted cash receipts…

Q: Use the following information to prepare the July cash budget for Acco Company. Ignore the "Loan…

A: The cash budget is prepared to record the cash receipts and cash payments during the period and…

Q: Using the following information: a. Beginning cash balance on March 1, $80,000. b. Cash receipts…

A: Cash budget is prepared to estimate the total cash received and total cash disbursement. It is…

Q: Newman Medical Clinic has budgeted the following cash flows. January February March $11,000 $117,000…

A: Answer - Cash Budget - A cash budget is a company's estimation of cash inflows and outflows over…

Q: nning Medical Clinic has budgeted the following cash flows. January $105,000 February $111,000 March…

A: Cash budget is the budget which represent cash inflows and disbursements during a particular period…

Q: SEATECH INC. Cash Budget For the Months of April, May, and June 2019 April May June Beginning cash…

A: In requirement B it is stated that the company wants to maintain a minimum cash balance of $10,000…

Q: Preparing a financial budget—schedule of cash payments Barnes Company budgeted direct materials…

A: Purchases in January = $ 191990 In February = $ 138610

Q: K2 Inc. have the following budgeted business transactions for the month of May: Insurance refund to…

A: Cash budget of the business shows expected cash to be, received and, expected cash to be paid. It…

Q: Baird Medical Clinic has budgeted the following cash flows. February $108,000 March January $102,000…

A: Cash budget is prepared when one wants to asses whether there is sufficient amount of cash in hand…

Q: The treasurer of Gateway Co. has accumulated the following budget information for the first two…

A: Budgeting: It is a process of planning the work to be performed. Under this process a formal plan is…

Q: Jasper Company has sales on account and for cash. Speclfically, 63% of Its sales are on account and…

A: Firstly, we shall bifurcate the total sales into cash sales and sales and account.

Q: Prepare a cash budget for the XYZ Manufacturing Company, indicating receipts and disbursements for…

A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…

Q: The following information is extracted from Sosana Hotel’s management report for the month of…

A: Cash sales = RM 13,000 x 70% = RM 9,100

Q: Using the following information: a. Beginning cash balance on March 1, $81,000. b. Cash receipts…

A: Cash budget of the business shows expected cash receipts and cash disbursements for a particular…

Q: Graham Potato Company Cash Budget November December Total cash receipts Total cash payments…

A: Cash Budget: November December Opening Cash balance 5000 5,000 Add: Cash receipts:-…

Q: nd Company prepares monthly cash budgets. Relevant data from operating budgets January February es…

A: Schedule of Expected Collection from Customers The budget includes a schedule of estimated cash…

Concept explainers

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.

Question

Beginning cash balance as on March 1, P80,000.
Cash receipts from sales P400,000
Budgeted cash disbursements for purchases 250,000.
Budgeted cash disbursements for salaries 90,000.
Cash repayment of bank loan 30,000.
Prepare a cash budget for the month ended on March 31 for Spars Corp.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

Relevant data from the operating budget of The Framers are: Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May The beginning cash balance was $50,000 and a required minimum cash balance is $10,000. Prepare a cash budget for the first two quarters of the year.
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 year
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.
Accounts Receivable Balance XYZ Corp sells widgets to consumers for $20 each. Its beginning accounts receivable balance was $24,975, and it sold 12,376 widgets throughout the year. The total cash collections for the year amounted to $217,750. Required: Calculate the ending accounts receivable balance.
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
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 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?
Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?