Here are some important figures from the budget of Nashville Nougats, Inc., for thesecond quarter of 2018:Credit salesCredit purchasesCash disbursementsWages, taxes, andAprilMayJune$322,000 $302,000 $362,000130,000 153,000 178,00044,20011,70063,200expensesInterestEquipment purchases11,200 11,20082,000 154,00011,200The company predicts that 5 percent of its credit sales will never be collected, 40percent of its sales will be collected in the month of the sale, and the remaining 55percent will be collected in the following month. Credit purchases will be paid in themonth following the purchase.In March 2018, credit sales were $192,000 and credit purchases were $132,000. Usingthis information, complete the following cash budget: (Do not round intermediatecalculations. Leave no cells blank - be certain to enter "O" wherever required.)Beginning cash balanceCash receiptsCash collections from credit salesTotal cash availableCash disbursementsPurchasesWages, taxes, and expensesInterestEquipment purchasesTotal cash disbursementsEnding cash balanceAprilMay125,000June

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Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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In preparation for the quarterly cash budget, the revenue and cost information have been compiled as follows: Month Sales (RM) Purchases (RM) August 2018 (actual) 3,000,000 3,500,000 September 2018 (actual) 4,500,000 2,000,000 October 2018 (forecast) 1,000,000 500,000 November 2018 (forecast) 1,500,000 750,000 December 2018 (forecast) 2,000,000 1,000,000 The firm collect 60 percent of sales for cash and 40 percent of its sales one month later. Interest income of RM50,000 on marketable securities will be received in December. The firm pays the purchases of 40 percent in cash and 60 percent in following month. Salaries and wages are RM450,000 in September, RM200,000 in October, RM150,000 in November and RM225,000 in December. Sales commissions are 2 percent of the preceding month's sales. Lease payments of RM150,000 must be made each month. A principal and interest payment on an outstanding loan is due in December of RM150,000. The firm pays dividends of RM50,000 at the…
Midus ind has the following data for the month ended on March 31. Prepare cash budget for the month of March 2021 with expected balance at the end. Beginning cash balance on March 1= $82,000 Cash repayment of bank loan= $18,000 Other budgeted cash expenses= $39,000 Cash receipts from sales= $315,000 Budgeted cash disbursements for salaries=$83,000 Budgeted cash disbursements for purchases=$146,000
Here are some important figures from the budget of Nashville Nougats, Incorporated, for the second quarter of 2022: April May June $399,000$ 348,000 $436,000 176,000 164,000 197,000 Credit sales Credit purchases Cash disbursements Wages, taxes, and expenses Interest Equipment purchases Beginning cash balance Cash receipts The company predicts that 5 percent of its credit sales will never be collected, 30 percent of its sales will be collected in the month of the sale, and the remaining 65 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2022, credit sales were $326,000. Cash collections from credit sales Total cash available Cash disbursements Using this information, complete the following cash budget. Note: Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32. Purchases Wages, taxes, and expenses Interest Equipment purchases 79,400 9,100 31,500 Total cash…
Capstone, Inc. is preparing its budget for the coming year, 2020. The first step is to plan for the first quarter of that coming year. Capstone, Inc. gathered the following information from the managers. Sales Unit sales for November 2019 112500 Unit sales for December 2019 104,000 Expected unit sales for January 2020 116,000 Expected unit sales for February 2020 115,500 Expected unit sales for March 2020 117,000 Expected unit sales for April 2020 135,000 Expected unit sales for May 2020 145,000 Unit selling price $13.00 Capstone, Inc. likes to keep 10% of the next month’s unit sales in ending inventory. All sales are on account. 85% of the Accounts Receivable are collected in the month of sale, and 15% of the Accounts Receivable are collected in the month after sale. Accounts receivable on December 31, 2019,…
Giving questions, Prepare a cash budget for the January and February for the year 2020
Tucker Inc. had the following budgeted sales for the first half of the current year: Cash Sales Credit SalesJanuary $70,000 $340,000February 50,000 190,000March 40,000 135,000April 35,000 120,000May 45,000 160,000June 40,000 140,000The company is in the process of preparing a cash budget and must determine the expected cash collections by month. To this end, the following information has been assembled: Collections on credit sales: 60% in month of sale 30% in month following sale 10% in second month following sale There is no beginning accounts receivable balance. The total cash collected by Tucker Inc. during January would be: The total cash collected by Tucker Inc. during February would be: The total cash collected by Tucker Inc. during March would be: The total cash collected by Tucker Inc. during April would be: The total cash collected by Tucker Inc. during May would…
Garden Depot is a retailer that provided the following budgeted cash flows for next year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 180,000 $330,000 $210,000 $230,000 Total cash disbursements $ 260,000 $230,000 $220,000 $240,000 The company's beginning cash balance for next year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow money at the beginning of any quarter and may repay any part of its loans at the end of any quarter. Interest payments, based on a quarterly interest rate of 3%, are due on any principal at the time it is repaid. For simplicity, assume interest is not compounded. Required: Prepare the company's cash budget for next year.
Hutchinson, Inc. provides the following data taken from its third quarter budget: Jul Aug Sep Cash collections $68,000 $34,000 $42,000 Cash payments: Purchases of direct materials 31,000 32,000 25,000 Operating expenses 11,000 19,000 20,000 Capital expenditures 0 34,000 7000 The cash balance on June 30 is projected to be $12,000. Based on the above data, calculate the shortfall the company is projected to have at the end of August. Group of answer choices $34,000 $23,000 $38,000 $13,000
Prepare the Cash Budget of AJ Traders for June and July 2021. The following information pertains to AJ Traders for the three months ended 30 June 2021: Actual Budgeted April R May R June R Sales (20% for cash and 80% on credit) 380,000 420,000 460,000 Purchase (10% for cash 90% on credit) 250,000 300,000 340,000 Salaries and wages paid 50,000 70,000 70,000 Cash expenses 28,000 32,000 36,000 Depreciation 2,000 2,000 2,000 • It is expected that debtors will settle their accounts as follows: 20% in the month of sale 70% in the month after the month of sale, and 5% in the second month after the month of sale • The remaining 5% is usually written off as bad debts. • Trade creditors are paid in the month after the purchases at a discount of 5%. • 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were…
Prepare a cash budget for January and February in columnar form. Please answer in detail with all working please answer in text not image
Lea Company's sales budget shows the following projections for the year ending Dec. 31, 2021: First quarter 40,000 units Third quarter 50,000 units Second quarter 55,000 units Fourth quarter 45,000 units The quantity of finished goods inventory at the end of each quarter is equal to 40% of the next quarter's budgeted unit sales and is constantly being maintained. What is the total production budget in units for one year ending Dec. 31, 2021 assuming that the estimated sales in units on the first quarter of 2022 is 50,000
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: April May June Credit sales $ 312,000 $ 292,000 $ 352,000 Credit purchases 120,000 143,000 168,000 Cash disbursements Wages, taxes, and expenses 43,200 10,700 62,200 Interest 10,200 10,200 10,200 Equipment purchases 72,000 134,000 0 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $182,000, and credit purchases were $122,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.)

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