Your friend, Catherine Ross, owns Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces. She has contacted you for some assistance because the accounting clerk, George Forrest, recently won a sum of money and decided to resign immediately. Catherine knows that you are completing an accounting course at Cape Breton University and hopes you can prepare the cash budget for the upcoming quarter (April, May and June, 2021). Catherine has provided you with the budgets completed by George. She has also provided you with additional information that will assist with the completion of the cash budget. Completed Budgets (April, May, June, and Quarter Total, 2021)please find the required numerical information from the images attached REQUIRED: Prepare a cash budget . Show the budget by month and in total. What will be reported on the budgeted balance sheet at June 30, 2021 for accounts receivable? Supporting calculations required to earn available points.What will be reported on the budgeted balance sheet at June 30, 2021 for merchandise purchases payable? Supporting calculations required to earn available points. Sales BudgetBudgeted sales in unitsUnit sales priceApril70,000May60,000June55,000Quarter185,00010101010Sales in dollars$700,000$600,000$550,000$1,850,000April$MayJuneQuarter31,000352,000700,000540,000110,0001,733,000Cash Colletions BudgetFebruary sales31,000308,000140,000March sales$44,000April salesMay sales490,00070,000420,000110,000600,000120,000June salesTotal479,000654,000May60,00022,00082,00024,00058,0004 $$ 264,000 $ 232,000 $ 212,000 $April70,000JuneMerchandise Purchases BudgetSales in units (storage systems)Add: Budgeted ending inventory55,00020,00075,000Quarter185,00024,00094,00028,00066,000$20,000205,00028,000177,000Total needsLess: Beginning fini shed goods inventoryRequired unit purchasesUnit cost22,00053,0004 $4 $4Required Purchases708,000AprilMayJuneQuarter$Cash Disbursements - Inventory PurchasesMarch purchasesApril purchasesMay purchasesJune purchases108,000264,000372,000106,000710,000$108,000132,000132,000116,000116,000106,000$ 240,000 $ 248,000 $ 222,000 $ ADDITIONAL INFORMATION:Cash balance, April 1, 2021 = $8,000• The company's monthly selling and administrative expenses are provided below. Allselling and administrative expenses are paid in the month incurred, with the exception ofdepreciation and insurance. Insurance is paid on an annual basis in December of eachyear.Variable expenses:Commissions5% of salesFixed expenses:AdvertisingRent$19,00020,500125,0009,0003,00018,000Wages & salariesUtilitiesInsuranceDepreciation• The company plans to purchase new equipment for cash in May ($18,000) and June(S45,000).• The company wants to have an ending cash balance each month of $40,000. Allborrowing is done at the beginning of the month. The interest on outstanding loans is 1%per month. Loan repayments and interest is only paid at the end of the month when thereis sufficient cash to do so. (The company does not borrow to pay interest or repay loans.)

Cash budget is a company's estimation of cash inflows and outflows over a specific period of time.…

Answered: Completed Budgets (April, May, June,…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter9: Profit Planning And Flexible Budgets

Section: Chapter Questions

Problem 62E: Flexible Budget for Various Levels of Production Budgeted amounts for the year: Required: 1. Prepare...

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Your friend, Catherine Ross, owns Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces. She has contacted you for some assistance because the accounting clerk, George Forrest, recently won a sum of money and decided to resign immediately. Catherine knows that you are completing an accounting course at Cape Breton University and hopes you can prepare the cash budget for the upcoming quarter (April, May and June, 2021).

Catherine has provided you with the budgets completed by George. She has also provided you with additional information that will assist with the completion of the cash budget.

Completed Budgets (April, May, June, and Quarter Total, 2021)

please find the required numerical information from the images attached

REQUIRED:

Prepare a cash budget . Show the budget by month and in total.
What will be reported on the budgeted balance sheet at June 30, 2021 for accounts receivable? Supporting calculations required to earn available points.
What will be reported on the budgeted balance sheet at June 30, 2021 for merchandise purchases payable? Supporting calculations required to earn available points.

Sales Budget
Budgeted sales in units
Unit sales price
April
70,000
May
60,000
June
55,000
Quarter
185,000
10
10
10
10
Sales in dollars
$700,000
$600,000
$550,000
$1,850,000
April
$
May
June
Quarter
31,000
352,000
700,000
540,000
110,000
1,733,000
Cash Colletions Budget
February sales
31,000
308,000
140,000
March sales
$44,000
April sales
May sales
490,000
70,000
420,000
110,000
600,000
120,000
June sales
Total
479,000
654,000
May
60,000
22,000
82,000
24,000
58,000
4 $
$ 264,000 $ 232,000 $ 212,000 $
April
70,000
June
Merchandise Purchases Budget
Sales in units (storage systems)
Add: Budgeted ending inventory
55,000
20,000
75,000
Quarter
185,000
24,000
94,000
28,000
66,000
$
20,000
205,000
28,000
177,000
Total needs
Less: Beginning fini shed goods inventory
Required unit purchases
Unit cost
22,000
53,000
4 $
4 $
4
Required Purchases
708,000
April
May
June
Quarter
$
Cash Disbursements - Inventory Purchases
March purchases
April purchases
May purchases
June purchases
108,000
264,000
372,000
106,000
710,000
$
108,000
132,000
132,000
116,000
116,000
106,000
$ 240,000 $ 248,000 $ 222,000 $

ADDITIONAL INFORMATION:
Cash balance, April 1, 2021 = $8,000
• The company's monthly selling and administrative expenses are provided below. All
selling and administrative expenses are paid in the month incurred, with the exception of
depreciation and insurance. Insurance is paid on an annual basis in December of each
year.
Variable expenses:
Commissions
5% of sales
Fixed expenses:
Advertising
Rent
$19,000
20,500
125,000
9,000
3,000
18,000
Wages & salaries
Utilities
Insurance
Depreciation
• The company plans to purchase new equipment for cash in May ($18,000) and June
(S45,000).
• The company wants to have an ending cash balance each month of $40,000. All
borrowing is done at the beginning of the month. The interest on outstanding loans is 1%
per month. Loan repayments and interest is only paid at the end of the month when there
is sufficient cash to do so. (The company does not borrow to pay interest or repay loans.)

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