cash budgets
Q: cash receipts
A: Cash budget is important for an entity in order to plan for day-to-day cash requirements and working…
Q: 15. Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January,…
A: Sales in January = $30,000 Sales in February = $35,000 Sales in March = $50,000
Q: A company expects the following sales for the coming year: 1st Quarter 2nd Quarter 3rd…
A: Formula: Sales value = Units x average selling price Multiplying units with average selling price…
Q: Part B: Cash Budgets You have been asked to prepare a cash budget for June and July 2022 for Dragon…
A: Cash Budget: - Cash Budget is the budget prepared by the business which contains all cash receipts…
Q: QUESTION 3- Cash Budgets Jamieson Ltd is preparing to set up business on 1/7/2022 and has made…
A: Budgeting - Budget is the document prepare by the company to estimate future Income and expense on…
Q: Q8) Prepare a cash budget for the first quarter for Shamz Logistics Inc., given the following data.…
A: Cash Budget is a statement of forecast to estimate the receipts and disbursement of cash for an…
Q: Question 1 Syntex Corporation has the following Production Budget data: Expected Sales in Units…
A: Hi! Thank you for the question, As per the honor code, we'll answer the first question since the…
Q: 10% in the month of sale 70% in the month following sale 20% in the second month following sale or…
A: Out of July month sales 20% will be received in September. And from August sales amount received…
Q: BUDGETED FINANCIAL STATEMENTS CELEBI CORP. has the following sales forecast for the first four…
A: What is meant by Budgeting? It is the process of forecasting future production, sales, operating,…
Q: Garden Sales, Inc., sells garden supplies. Management is planning its cash needs for the second…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Q3 (a) Jati Jentayu Sdn Bhd manufactures and sells furniture that has peak sales in the third month.…
A: Budgeting: Budgeting is a future plan of expected income, expenditure and cash for a particular…
Q: A cash budget, by quarters, is given below for a retail company. (000 omitted). The company…
A: Cash budget is the budget showing all the cash receipts and outlays estimated for a future period.
Q: Q No.1 A company has a cash balance of Rs.27000 at the beginning of March and you are required to…
A: Cash budgets are prepared to estimate the cash receipts and cash disbursement for future periods.…
Q: Upside-Down Cakes prepared the following sales budget: Month Cash Sales Credit Sales March…
A: Cash received in the month of may = Cash sales + Cash collection from account receivable
Q: Problem 3. Taura Corp has the following past information for its credit sales: 60% of sales are…
A: Whenever a business sales goods to its customers then it can be on cash basis or on credit basis.…
Q: Exercise I (Schedule of Expected Cash Collections) Peak sales for Mideast Products, Inc.., occur in…
A: The first step to making a schedule of expected money collections is determining however sales…
Q: 1. Prepare a sales budget for 2 quarters. Elliott Electronics Inc. produces and sells two models of…
A: Sales budget shows the estimated sales revenue forecast for the coming period.
Q: 4. Al Maha Company makes collections on sales according to the following schedule: 10% in the month…
A: Formula: Cash collection amount = Expected sales amount x cash collection percentage. Multiplying…
Q: Prepare a sales budget. Palermo Company estimates that unit sales will be 10,000 in quarter 1;…
A: Sales Budget: PALERMO COMPANY Sales Budget For the Year Ending December 31, 2019 Description…
Q: The Plantd’ Company’s budgeted sales for the first quarter of 2020 are as follows:…
A: This question deals with the preparation of cash budget. Cash budget is prepared by the management…
Q: Q1 Glass manufacturing company requires you to calculate and present the budget for the next year…
A: Budget is the statement showing future forecasts based on the past estimates and experience.
Q: -/1 View Policies Current Attempt in Progress Scan Design provided the following budgeted…
A: The cash disbursement needs to be computed by taking all cash payments. Depreciation is a non-cash…
Q: Prepare a cash budget for two months. P10.50B (LO 4) Nigh Company prepares monthly cash budgets.…
A: Budgets are prepared in order to predict the financial outcomes of the upcoming transactions. Cash…
Q: Q3. The Alex ple, a merchandising firm, has planned the following sales for the next four months:…
A: Budget means the expected value of future. Budget is not affected by the actual value as it is…
Q: The budgeted sales for the next four quarters are R192 000, R288 000, R288 000 and R336 000…
A: First quarters Second quarters Third quarters Budgeted sales R192,000 R288,000 R288,000…
Q: Prepare a sales budget for 2 quarters Exercise 1 Trusler Electronics Inc. produces and sells two…
A: This question deals with the preparation of sales budget. Management prepares master budget with the…
Q: Question6: Company wants to prepare a cash budget for May, June, and July. At the end of every…
A: Cash budget is prepared based on the estimated cash inflows and outflows for decision making that is…
Q: PRACTICE EXERCISE 1: Complete the table. Prepare the Sales Budget of ABC Company. Complete the table…
A: A sales budget is a systematic plan of allocating resources of a company to achieve forecasted…
Q: Problem 5 Prepare a cash budget by month for the month quarter ending September 30, 2009, from the…
A: Cash Budget refers to Future Estimation of Expected cash receipts and Payments to be incurred during…
Q: sales. om. Jada Mcheon Jound CASH BUDGET The MoBay Corporation`s projected sales for the first eight…
A: Cash budgets are prepared from operational budgets and capital funding and other programs. It is…
Q: Question 1 TinyTom makes one product, which sells for $70 each, and prepares functional budgets on a…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: left 0:3 Fraser Company has forecast purchases on account to be $210,000 in March, $270,000 in…
A: The budgeted cash payment indicates the amount of expected cash payment it makes. The company makes…
Q: QUESTION 3 Prepare the Cash Budget for a project of Zao Enterprises for the period 01 June to 31…
A: Cash Budget:- A cash budget is helpful to determine the total cash flows of a firm for a specified…
Q: QUESTION 1 Ginobili has forecast sales to be $120100 in February, $151200 in March, $162700 in…
A: Budgeted cash receipts refer to the cash that is received as cash and expected to collect on the…
Q: Bellmore Limited is ready to begin its third quarter in which peak sales occur and will have a cash…
A: The cash budget refers to the estimation of the cash receipts, cash payments, and balance of cash at…
Q: COVID 19 Co has forecast purchases on account to be $312.000 in March, $377.000 in April, $421,000…
A: Budgeted cash payment for May = May purchases x 60% + April purchases x 40%
Q: Question 8 View Policies Current Attempt in Progress Waterway Industries reported the following…
A: Budgeted cash receipts are the cash inflows expected for a budgeted period.
Q: Q3: MW Limited manufactures a single product, a Tu. The finance director prepares monthly budgets.…
A: ‘’Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: 4. Al Maha Company makes collections on sales according to the following schedule: 10% in the month…
A: Particulars Jan Feb March 10% sale collections 8000 10000 12000 50% sale collections in next…
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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- A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000CASH 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 2014 and 2015: May 2014 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360.000 November 360,000 December 90,000 January 2015 180.000 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: May 2014 90,000 June 90,000 July 126,000 August 882.000 September 306,000 October 234,000 November 162,000 December 90,000 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 arc S2,700 a month. Income tax payments of 63,000 arc 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 2014. b. Prepare monthly estimates of the required financing or excess funds that 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 130 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.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 2016 and 2017. May 2016 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2017 180,000 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: May 2016 90,000 June 90,000 July 126,000 August 882,000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depredation 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 2016. 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 ail financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.
- Navigator sells GPS trackers for $50 each. It expects sales of 5,000 units in quarter 1 and a 5% increase each subsequent quarter for the next 8 quarters. Prepare a sales budget by quarter for the first year.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 2015 and 2016: May 2015 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2016 180,000 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: May 2015 90,000 June 90,000 July 126,000 August 882,000 September 306,000 October 234,000 November 162,000 December 90,000 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 2015. 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.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?
- Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget? FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Required: 1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. 2. What if FlashKick added a third linetournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of 45 each in January and February, and 48 each in March? Prepare a sales budget for Flash- Kick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.Barnstormer sells airplane accessories for $20 each. It expects sales of 120,000 units in quarter 1 and a 7% increase each subsequent quarter for the next 8 quarters. Prepare a sales budget by quarter for the first year.Question6: Company wants to prepare a cash budget for May, June, and July. At the end of every month the cash balance will be Rs. 20,000. Determine whether borrowing will be necessary during the period, and if it is, when and for how much. The following information has been provided: As of April 30, the firm had a balance of Rs. 20,000 in cash. Actual Sales Rs. Forecast Sales Rs. January 50,000 May 70,000 February 50,000 June 80,000 March 60,000 July 100,000 April 60,000 August 100,000 50% of total sales are for cash. The remaining will be collected equally during the following two months. Cost of purchases are 70% of sales, 90% of this cost is paid during the first month after incurrence and the remaining 10% is paid in the following month. Dividend of Rs. 10,000 declared on June will be paid in the month of July. Company plans to sell machinery costing Rs. 10,000 at an expected gain of Rs. 5,000 in June. Purchase plant…
- Q1 Bellmore Limited is ready to begin its third quarter in which peak sales occur and will have a cash opening balance of R22 250 on 1 July. Actual sales for the last two months and budgeted sales for the quarter are as follows; May (actual) R125 000 June (actual) R150 000 July (actual) R200 000 August (budgeted) R300 000 September (budgeted) R160 000 old records shows the following: 25% of a month’s sales collected in the month of sale 70% in the month following the month of sale 3% in the second month following the month of sale The remainder is irrecoverable The budgeted material purchases and expenses for the third quarter are as follows: July August September R R R Material purchases 170 000 175 000 87 500 Salaries and wages 22 500 20 000 20 000 Advertising 45 000 35 000 40 000 Rent paid 4 500 4 500 4 500 Depreciation 5 000 5 000 5 000 Material purchases are paid in full…Question 1 The marketing department of HASF Corporations has submitted the following sales forecast for the upcoming fiscal year (all sales are on account) Q1 Q2 Q3 Q4 total Budgeted units sales ? 10% increase 10 % decrease 16,335 62,685 Budget selling price per unit 18 18 18 ? 18 budgeted sales revenue ? 297,000 ? 294,030 ? Other information Each quarter ending finished goods inventory is 20% of next month units sold. Next year first quarter beginning inventory is 3,000. Each finished units require 3 grams of raw material that cost Rs 3 per unit. Management desired to end each quarter with an inventory of raw material equal to 15% of the current quarter production needs Beginning inventory of raw material in first quarter 3,000 grams FIND UNIT SALES of Q1 Answer format should be like : 10000 donot USE COMMA's or Currency or UNITs. Answer should be plain…QUESTION 1You are required to prepare a cash budget for the third quarter of 2020 for STS Corporation.Month Total sales(RM)March 170,000April 100,000May 140,000June 180,000July 200,000AugustSeptemberOctober220,000195,000180,000i) The company makes 10 percent cash sales, and the balance are collected as follows; 60percent is collected one month after sales, 30 percent is collected two months after sales,and 10 percent is collected three months after sales.ii) Purchase of raw materials is 50 percent of sales and are made one month prior to sales.Payment are made equally in the two months after the purchases.iii) Wages and salaries amounting to 10 percent of the last month’s sales. The company fixedmonthly expenses are RM3,000 for rent, RM2,000 for utilities, RM10,000 for depreciation,and RM1,500 for insurance.iv) A quarterly dividend of RM50,000 will be paid at the end of each quarter.v) The company plans to pay RM70,500 in cash for a new machinery installed in August.vi) Ending cash…
