Hasanağa Inc. has a cash balance of $20,000 on April 1, 2015. They are now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows: Apr $25,000 Мay $22,000 June $20,000 Cash collections Cash payments: Purchases of inventory Operating expenses 5,800 3,500 7,000 4,600 6,200 5,300 There are no budgeted capital expenditures or financing transactions during the quarter. Based on the above data, calculate the projected cash balance at the end of April. (

Hasanağa Inc. has a cash balance of $20,000 on April 1, 2015. They are now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows: Apr $25,000 Мay $22,000 June $20,000 Cash collections Cash payments: Purchases of inventory Operating expenses 5,800 3,500 7,000 4,600 6,200 5,300 There are no budgeted capital expenditures or financing transactions during the quarter. Based on the above data, calculate the projected cash balance at the end of April. (

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 18E: Carmichael Corporation is in the process of preparing next years budget. The pro forma income...

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Hasanağa Inc. has a cash balance of $20,000 on April 1, 2015. They are now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows: Apr May JuneCash collections $25,000 $22,000 $20,000Cash payments:Purchases of inventory 5,800 7,000 6,200Operating expenses 3,500 4,600 5,300There are no budgeted capital expenditures or financing transactions during the quarter. Based on the above data, calculate the projected cash balance at the end of April.
Tomo, Inc. has prepared its third quarter budget and provided the following data: Jul $49,000 Aug $39,800 Sep $47,900 Cash collections Cash payments: Purchases of direct materials Operating expenses Capital expenditures 17,900 11,100 0 The cash balance on June 30 is projected to be $4,600. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the final projected cash balance at the end of August taking into consideration all the financing transactions. 31,000 12,100 13,700 O A. $46600 OB. $-8842 OC. $15000 O D. $6158 21,800 8,700 24,900
Verle, Inc. has a cash balance of $24,000 on April 1. The company is now preparing the cash budget for the second quarter. Budgeted cash collections and payments are as follows: Cash collections Cash payments: Purchases of direct materials Operating expenses Apr May Jun $24,000 $24,000 $25,000 5,800 4,600 4,600 6,000 3,500 5,300 There are no budgeted capital expenditures or financing transactions during the quarter. Based on the above data, calculate the projected cash balance at the end of May. OA. $60,200 OB. $24,000 OC. $52,100 OD. $55,600
Bramble Corp. reported the following information for 2022: Budgeted purchases October November December $260000 $296000 $318000 • Operating expenses are: Salaries, $110000; Depreciation, $30000; Rent, $20000; Utilities, $28000 • Operating expenses are paid during the month incurred. • Accounts payable is used only for inventory acquisitions. What are budgeted cash disbursements for operating expenses in November? $158000 $454000 $149000 O $188000
It is the beginning of the year and the following information applies, concerning the preparation of the budgets: Budgeted 2023 Feb € Sales Admin expenses ▪ ▪ . Actual 2022 Dec € Nov € 74200 4800 79800 5300 Jan € 78400 4500 98000 4600 March € 109200 4200 Depreciation of 1000€ is included in Admin Expenses 1% of sales are never collected. Experience has shown that if an amount is not collected within 3 months, then it is in fact never collected. Bad Debts are written off during the year. 60% of the sales collected, are collected in the month of sale, 30% in the month following sale and the balance in the 2nd month after the sale. Cost of sales consists only of purchases. The company has a 40% mark-up on cost policy. 30% of sales are bought in the month of sale and the balance is bought in the month previous to the sale. Assume this has always been strictly adhered to with no left over inventory other than that planned above. 20% of purchases are paid within 60 days and the balance is…
Edelmar Corp. has prepared a preliminary cash budget for the third quarter as shown below: Cash Budget Beginning cash balance Plus: Cash collections Cash available Less: Cash payments: Purchases of direct materials July $36,000 $56,000 92,000 Operating expenses Capital expenditures Ending cash balance Aug $17,000 $52,000 $69,000 34,000 41,000 0 $17,000 Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $54,000 in July, $55,000 in August, and $44,000 in September. Based on the new data, calculate the new projected cash balance at the end of July Sep $21,500 47,800 $69,300 9,000 30,500 8,000 $21,500 10,000 30,800 7,700 $20,800
Tomo, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections $52,000 $39,600 $47,200 Cash payments: Purchases of direct materials 31,000 21,200 17,800 Operating expenses 12,500 8900 11,400 Capital expenditures 13,100 24,900 0 The cash balance on June 30 is projected to be $4300. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the final projected cash balance at the end of August taking into consideration all the financing transactions.
Ivanhoe Corporation prepares monthly cash budgets. Here are relevant data from operating budgets for 2025. Sales Purchases Salaries Administrative expenses Selling expenses Other data. 2. January $360,300 3. 121,000 4. 84,400 71,600 79,300 February All sales and purchases are on account. Eudgeted collections and disbursement data are given below. All other expenses are paid in the month incurred. Administrative expenses include $1,100 of depreciation per month. $400,600 130,900 1. Collections from customers: January $330,600; February $379,000. Payments for purchases: January $102,600; February $143,100. Other receipts: January: collection of December 31, 2024, notes receivable $17,600; February: proceeds from sale of securities $5,200. Other disbursements: February $12,000 cash dividend. 81,200 73,900 86,400 The company's cash balance on January 1, 2025, is expected to be $47,700. The company wants to maintain a minimum cash balance of $56,020. Prepare a cash budget for January and…
the task of preparing the cash budget for the business for the quarter ending September 30, 2022. Your data collection has yielded the following:i) Extracts from the sales and purchases budgets are as follows:Month CashSales SalesOn Account CashPurchases PurchasesOn AccountMay $75,000 $480,000 $390,000June $135,000 $600,000 $36,000 $360,000July $86,800 $720,000 $61,700 $450,000August $105,600 $640,000 $68,800 $400,000September $112,500 $800,000 $77,250 $500,000ii) An analysis of the records shows that trade receivables (accounts receivable)…
PRS company is preparing cash budget for the forthcoming year with the following details:1512nd3rd quarter 4th quarterQuarter QuarterTotal cash receipts $180.000 $330,000 $210.000 S230.000Total cash disbursements $260,000 $230,000 $220,000 $240,000Cash balance at beginning of the year is $20,000. It is a goal for the company to maintainthe minimum cash balance of $10,000 and borrow the funds from local bank as and whenrequired at quarterly interest rate of 3%. The funds can be borrowed at beginning of thequarter and repaid at end of the year. Repayment can be full or part of loan. Interest willbe due on principal amount that is repaid.
Delbert, Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections $49,000 $39,500 $46,000 Cash payments: Purchases of direct materials 30,000 22,100 17,600 Operating expenses 12.400 8,500 11,400 Capital expenditures 13,300 24,200 0 The cash balance on June 30 is projected to be $5,300. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 4%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. How much will the company have to borrow at the end of July? OA. $15,000 OB. $10,000 OC. $5,000 OD. $0
Use the information below to answer question 1 to 22. The financial controller of BOE Ltd. is gathering data to prepare a cash budget for the second quarter of 2018. The following information is available. a) Sales for the first six months of the year are as follows: January February March 23,000 30,000 50,000 57,000 60,000 56,000 April Мay June a) 40% of all sales are cash sales. b) Of credit sales, 50% are collected in the month of sales and the remaining 50% collected the following month. c) The cost of raw materials equals 35% of each month's sales. 50% of raw materials are paid for in the month of purchase. The remaining 50% are paid in the following month. d) Wages total ¢5,500 per month and are paid for in the month incurred. e) Operating expenses per month totalled ¢16,800 of which ¢2,500 is depreciation and ¢300 is expiration of prepaid insurance premium (the annual premium of ¢3,600 paid in Jan 1). f) Dividend of ¢7,000 declared in March 31 will be paid on April 20. g) Old…