Below are the budgeted revenue and expenses for a restaurant for the year 2022. Revenue RM (*000) 71,250 Sales Expenses RM (*000) 28,500 4,200 17,100 Cost of supplies Salaries Wages Depreciation Repair and Maintenance 900 3,000 1,500 Advertisement Laundry 200 Interest on Loan 2,200 Miscellaneous expenses 2,300 Utilities 650 Below are the additional information given to you for further analysis: The expected pattern of sales for the year 2022 are as follows and it is the company policy to analyse based on quarters. Percentage of sales 24 Quarter 20 3 24 4 32 75% of the sales are on a cash basis and the balance will be received in the next quarter. The costs of supplies vary directly with sales and a constant stock value of supplies are kept. 20% of purchases of the food and drinks are for cash and the balance are paid during next quarter. 80% of the repairs and maintenance item is for a major redecoration to be paid in the third quarter. Wages, which are variable with sales, are paid in the same quarter which they are incurred. Utilities and interest on loan are paid half yearly in the first and third quarters. All other expense payments are made evenly over the year. Below are the opening balances: RM (*000) 4,750 7,050 800 Items Trade receivables Trade payables Bank overdraft Required: Prepare a tabular form of the cash budget for the four quarters of the year 2022.
Below are the budgeted revenue and expenses for a restaurant for the year 2022. Revenue RM (*000) 71,250 Sales Expenses RM (*000) 28,500 4,200 17,100 Cost of supplies Salaries Wages Depreciation Repair and Maintenance 900 3,000 1,500 Advertisement Laundry 200 Interest on Loan 2,200 Miscellaneous expenses 2,300 Utilities 650 Below are the additional information given to you for further analysis: The expected pattern of sales for the year 2022 are as follows and it is the company policy to analyse based on quarters. Percentage of sales 24 Quarter 20 3 24 4 32 75% of the sales are on a cash basis and the balance will be received in the next quarter. The costs of supplies vary directly with sales and a constant stock value of supplies are kept. 20% of purchases of the food and drinks are for cash and the balance are paid during next quarter. 80% of the repairs and maintenance item is for a major redecoration to be paid in the third quarter. Wages, which are variable with sales, are paid in the same quarter which they are incurred. Utilities and interest on loan are paid half yearly in the first and third quarters. All other expense payments are made evenly over the year. Below are the opening balances: RM (*000) 4,750 7,050 800 Items Trade receivables Trade payables Bank overdraft Required: Prepare a tabular form of the cash budget for the four quarters of the year 2022.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 3P: Budgeted selling and administrative expenses for King Tire Co. In P7-2 for the year ended December...
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