Corp. is working on its cash budget for March. The budgeted beginning cash balance is $26,000. budgeted cash receipts total $198,000 and budgeted cash disbursements total $197,000. The desired ending cash balance is $45,00. Q) The excess (deficiency) of cash available over disbursements for March will be: Multiple Cholce $25,000 $1,000 $27,000
Q: Sedita Incorporated is working on its cash budget for July. The budgeted beginning cash balance is…
A: Formula for excess (deficiency) of cash available over disbursement = Budgeted Cash at the…
Q: Your Company is working on its cash budget for July. The budgeted beginning cash balance is $50,000.…
A: A cash budget involves the estimation of cash inflows and cash flows that may occur in the future…
Q: Sedita Incorporated is working on its cash budget for July. The budgeted beginning cash balance is…
A: The excess cash available is determined by adding the beginning balance of cash and cash receipts…
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: Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $30,000.…
A: Cash budget is prepared to check whether we have achieved cash flow target .
Q: Mosbey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $16,000.…
A: Budgets: Budgets are prepared for the planning and controlling purposes. Budgets facilitate planning…
Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has…
A: The question is based on the concept of Cost Accounting. A cash budget is a forecast of a company's…
Q: NanaKay Ltd is working on its cash budget for June. The budgeted beginning cash balance is…
A: Budgets: Budgets are prepared for the planning and controlling purposes. Budgets facilitate planning…
Q: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is…
A: Cash Balance before any borrowings = Beginning Cash Balance + Cash Receipts - Cash Disbursements…
Q: Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $14.000.…
A: A cash budget is an estimation of the cash flows of a business over a specific period of time. This…
Q: Roberts Supply, Inc. provides the following data taken from its third quarter budget: Jul Aug…
A: . Cash balance at the end of September = Cash balance at the end of June + Cash receipts in July,…
Q: A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a…
A: A Cash budget represents the expected future cash flow of an organization over a defined period of…
Q: Nizwa Inc. is working on its cash budget for June. The budgeted beginning cash balance is $12,000.…
A: Cash budget means expected cash receipts and expected cash payment with opening and closing cash…
Q: Use the following information to prepare the September cash budget for PTO Company, Ignore the "Loan…
A: Budgets are forecasted figures that help in estimating the various incomes and expenses. Budgets are…
Q: Muscat Inc. is working on its cash budget for December. The budgeted beginning cash balance is…
A: Given: Beginning Cash = $10,000 Cash Receipts = $80,000 Cash Disbursements = $75,000
Q: The following information was taken from Southgate Industry’s cash budget for the month of July:…
A: The cash budget is prepared by the management to know the future cash availability of cash. It…
Q: Riff, Inc. is working on its cash budget for June. The budgeted beginning cash balance is $27,000.…
A: Excess (deficiency) of cash available over disbursements = Budgeted beginning cash balance +…
Q: ONas Corporation is preparing its cash budget for September. The budgeted beginning cash balance is…
A: Cash budget is one of the important budget that is being prepared in business in order to show…
Q: A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a…
A: Cash budget estimates the cash payment and cash receipt of the company.
Q: Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has…
A: Garden Depot Cash Budget Particulars Ist Quarter 2nd Quarter 3rd Quarter 4th Quarter Year…
Q: XYZ company is preparing its cash budget for the first quarter of the year. It has $10,000 in cash…
A: Answer: with formula:
Q: Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $20,000,…
A: The excess cash availability over disbursement is calculated by subtracting the total cash…
Q: Dove Corporation began its operations on September 1 of the current year. Budgeted sales for the…
A: Cash Collections:Cash collections: It refer to the amount of cash collected from the customers on…
Q: Morgan and Company has planned a cash budget for the third quarter of 2004. The cash balance on July…
A: Budget refers to the financial plan for the set period or year and it includes the planned sales…
Q: Sedita Inc. is working on its cash budget for July. The budgeted beginning cash balance is $30.000.…
A: Option d is correct.
Q: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is…
A: The cash budget is prepared to estimate the cash requirements for the future period.
Q: Crose Inc. is working on its cash budget for November. The budgeted beginning cash balance is…
A: Borrowing can be defined as the cash requirement by the company in order to maintain the day-to-day…
Q: NanaKay Company must maintain a minimum cash balance of GH¢25,000. At the beginning of June, the…
A: The Net income need not be considered since cash income and cash expenses are already includes in…
Q: How much would Becker Company need to borrow to achieve its desired ending cash balance?…
A: Cash Budget is the estimation of Cash Receipt and Cash disbursement during a particular period…
Q: Midus ind has the following data for the month ended on March 31. Prepare cash budget for the month…
A: To identify the expected disbursements and receipts of cash for a given period of time, cash budget…
Q: Laurey Inc. is working on its cash budget for June. The budgeted beginning cash balance is $45,100.…
A: Amount to be borrowed = Ending cash balance - Receipts + Payments - Beginning cash balance
Q: The budgeted sales of Kelley, SA for the given months are as follows: Cash Sales Credit Sales…
A: Accounts receivable is the amount that has been earned by the company but the amount has not been…
Q: Palmerin Corporation is preparing its cash budget for November. The budgeted beginning cash balance…
A: Cash budgets are prepared with an objective to estimate the amount of cash inflow or cash outflow…
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: Morgan and Company has planned a cash budget for the third quarter of 2004. The cash balance on July…
A: Introduction A cash budget is estimation of future cash cash flow of a company or organisation
Q: Jul Aug Sep Cash collections $68,000 $34,000 $42,000 Cash payments: Purchases of direct…
A: Solution: Ending balance of cash at the end of July = beginning cash + collections - cash payments =…
Q: Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is…
A: The cash budget is prepared to find out the cash requirements for the future period.
Q: Month BudgetedSales BudgetedPurchases May $800,000 June $900,000 $600,000 July $750,000…
A: A budget is defined as an estimate of revenue income and expenses for a set period of time. The…
Q: Muscat Inc. is working on its cash budget for December. The budgeted beginning cash balance is…
A: Amount need to be borrowed equals to = Desired ending cash balance- Closing balance of Cash before…
Q: Carol's Chocolate Company has prepared its third quarter budget and provided the following data:…
A: Cash budget is a statement prepared to record expected receipts and disbursement of cash during a…
Q: XYZ company is preparing its cash budget for the first quarter of the year. It has $10,000 in cash…
A: Cash available=Opening balance+Cash collections=$10,000+$28,000=$38,000
Q: reet Inc. is preparing its cash budget for November. The budgeted beginning cash balance is $11,000.…
A: cash budget is prepared to determine cash requirements for a given period of time
Q: Palmerin Corporation is preparing its cash budget for November. The budgeted beginning cash balance…
A: Cash budget is prepared by the company in order to forecast the cash balance that will be available…
Q: Crose Inc. is working on its cash budget for November. The budgeted beginning cash balance is…
A: The cash budget is prepared in order to estimated the future cash receipts and cash payments. It…
Q: Thomton, Inc. has budgeted sales for the months of September and October at $304,000.00 and…
A: Credit sales for September = Total sales x 20% = $304000 x 20% = $60800 Credit sales for october =…
Q: Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is…
A: Cash budget is that form of the budget which shows expected inflows and outflows of cash along with…
Q: A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a…
A: Cash budget is the most significant device to plan for and control cash receipts and payments. This…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.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. 156,000Shalimar 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.
- Budgeted income statement and supporting budgets The budget director of Jupiter Helmets Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for May: Prepare a cost of goods sold budget for May. Work in process at the beginning of May is estimated to be $4200. and work in process at the end of May is desired to be $3800.Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information: a. Of all sales, 40% are cash sales. b. Of credit sales, 45% are collected within the month of sale. Half of the credit sales collected within the month receive a 2% cash discount (for accounts paid within 10 days). Thirty percent of credit sales are collected in the following month; remaining credit sales are collected the month thereafter. There are virtually no bad debts. c. Sales for the second two quarters of the year follow. (Note: The first 3 months are actual sales, and the last 3 months are estimated sales.) d. The company sells all that it produces each month. The cost of raw materials equals 26% of each sales dollar. The company requires a monthly ending inventory of raw materials equal to the coming months production requirements. Of raw materials purchases, 50% is paid for in the month of purchase. The remaining 50% is paid for in the following month. e. Wages total 105,000 each month and are paid in the month incurred. f. Budgeted monthly operating expenses total 376,000, of which 45,000 is depreciation and 6,000 is expiration of prepaid insurance (the annual premium of 72,000 is paid on January 1). g. Dividends of 130,000, declared on June 30, will be paid on July 15. h. Old equipment will be sold for 25,200 on July 4. i. On July 13, new equipment will be purchased for 173,000. j. The company maintains a minimum cash balance of 20,000. k. The cash balance on July 1 is 27,000. Required: Prepare a cash budget for July. Give a supporting schedule that details the cash collections from sales.Carmichael Corporation is in the process of preparing next years budget. The pro forma income statement for the current year is as follows: Required: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a 60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
- The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.What is the amount of budgeted cash payments if purchases are budgeted for $420,000 and the beginning and ending balances of accounts payable are $95,000 and $92,000, respectively?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?
- What is the amount of budgeted cash payments if purchases are budgeted for $190,500 and the beginning and ending balances of accounts payable are $21,000 and $25,000, respectively?At the beginning of the period, the Fabricating Department budgeted direct labor of 72,000 and equipment depreciation of 18,500 for 2,400 hours of production. The department actually completed 2,350 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.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 2019 and 2020: 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: 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 2019. 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.