of September, October, plan for enough cash c ion, which is the same a lates to the budget:
Q: Cleaning Truck The following details relate to a street cleaning truck which was imported from…
A: As per standard accounting practices when we purchase any asset , we…
Q: [17] Monetary-unit sampling (MUS) can be used to project the A. Monetary amount of error in a…
A: MUS (monetary-unit sampling) is a quantitative sampling approach for determining the amount of…
Q: March 1 Invested OMR 10,000 as capital March 3 Purchased office furniture for OMR 3,000 from Blossom…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Nan and Lew formed an equal partnership. Nan contributes property with an adjusted basis of $75,000…
A: Partnership refers to the contractual agreement among the persons who want to conduct a business…
Q: Consider the following simplified production process for an electronic device. Demand = 50,000…
A: Demand = 50,000 devices/year Price = $50 each Raw Material = $5/device Employee Wage = $25/hr.…
Q: Champ Incorporated budgets the following sales in units for the coming two months. Each month’s…
A: A production budget seems to be a statement that analyzes and provides manufacturing data. This is a…
Q: Hammond Manufacturing Inc. was legally incorporated on January 2, 2020. Its articles of…
A: Journal entries The Statement of Changes in Equity The equity section on the December 31,2022
Q: On January 1, 2019, Weaver Company purchased as held-to-maturity debt securities $500,000 face value…
A: The term "debt securities" can refer to a range of financial products that contain a commitment from…
Q: Required Record the correcting entry in 2021, ignoring income taxes. Company policy is to amortize…
A: On June 30, 2020, Williams Inc has issued 8 years bonds with the face value of $ 5,00,000 at 5%…
Q: An entity acquired specialized computer software for use in its manufacturing process on 1 February…
A: The question is related to Accounting for Intangible Assets. The Intangible Assets is initially…
Q: Operating Leverage Beck Inc. and Bryant Inc. have the following operating data: Beck Inc. Bryant…
A:
Q: Garden Yeti manufactures garden sculptures. Each sculpture requires 8 pounds of direct materials at…
A: Budget: Budget is prepared to estimate that how money will be used. Material required : 8 pounds…
Q: a. As to this plan, how much is included in Andrew's gross estate? 4,846,560 x Feedback V Check My…
A: Solution:- Given, Andrew was a participant in his employer's contributory qualified pension plan at…
Q: 1. Problem 7-22 Adoption Expenses (LO 7.7) Carl and Jenny adopt a Korean orphan. The adoption…
A: Given : Qualified adoption expense in 2020 = $7000 Qualified adoption expense in 2021 = $7500 Carl…
Q: 2) A purchase of equipment for $18 000 also involved freight charges of $500 and installation costs…
A: Formula: Straight line method depreciation = ( Asset cost - Salvage value ) / Useful life
Q: An entity acquired an operating license from the local council to operate a night club for ten years…
A: The question is related to the Amortization of license. The Amortization is calculated with the help…
Q: Prepare the following financial statements for Sea View Tour. income Statement for the year ended 31…
A: Financial statements are organized summaries of full information which show the financial position…
Q: Based on recent experience, a company knows that its production follows an 80% learning curve. The…
A: Learning curve implies that with each production unit, the workers working on that products get…
Q: On January 1, 20x1, ABC sold a used vehicle with a historical cost of P2,000,0000 and accumulated…
A: Carrying amount of the note receivable will be calculated as under: = Annual Installment Receivable…
Q: Allocating joint cost Keiffer Production manufactures three joint products in a single process. The…
A: Answer a) Calculation of Joint costs allocated to each product on the basis of number of gallons…
Q: Required: [Dikehendaki:] a. Prepare a Statement of Comprehensive Income for the year ended 31 March…
A: Statement of comprehensive income means the statement which shows all the nominal account and…
Q: Bond Premium, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Premium…
A: 1. Bonds are instrument that are represent as loan to borrower by investor. generally a company is…
Q: Sugar Sweet (SS) Company produces and sells 7,000 specialty Treats per year at a selling price of…
A: Comment-Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: Norwood Industries has annual fixed costs of $1.8 million. Unit variable costs are currently 55% of…
A: Answer) Calculation of Expected Operating Income if Selling price is increased by 10% Expected…
Q: what is the controversy in IFRS 8 Operating Segment?
A: Introduction: An essential piece of an entity that is a moneymaker has discrete financial available…
Q: QUESTION 1 Eve Corparation issuesa $9000,000, 5%, 20-year mortgage note payable on December 31,…
A: Given : Eve Corporation issues a $9,000,000, 5%, 20-year mortgage note payable on December 31, 2021…
Q: Sheridan Homes Ltd., a private company reporting under ASPE, reported the following for the year…
A: The question is related to Cash Flow Statement. Cash Flow Statement is summary of cash receipts and…
Q: Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage…
A: The break even point is the level where the total costs equal to the total sales. Thus means that…
Q: Below are the financial statements for Aspirations Pty Ltd. Statement of Financial Position at 30…
A: The question is related to Ratio Analysis. The details are given regarding the same. 1. Gross…
Q: Westby Corp., a high school uniform manufacturer, was authorized to issue an unlimited number of…
A: Equity Section: Stockholders' equity, often known as owner's equity, is the portion of a balance…
Q: Required: Calculate the company's revenue and spending variances for August. (Indicate the effect of…
A: Variances arise because of differences between actual results and budgeted results.
Q: Following s the infornaation ueloting doa Conteiact. Cont siact pake. Raw moterials wages amount $…
A: Contract account :- Contract account is opened for each contract, this account includes all the…
Q: In the accounting process, financial statements must be prepared _________ A. After the adjusting…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: During January, its first month of operations, Ivanhoe Company accumulated the following…
A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…
Q: C-2 if your recommendation in part (c-1) is followed, what would be the company's overall profit ?
A: Analysis of the profitability of the overall operation Combined final sales value…
Q: 3- Mr Bryan has been working as an engineer with Rentak Sdn Bhd since 2007. For the year 2021, he…
A: Gross income from employment includes salary, travelling allowance in excess of RM6000 annually,…
Q: Required: Prepare the November bank reconciliation. Assume the error is committed by XYZ Co.
A: There are two type of cash balances that is being used and recorded in business. These are cash…
Q: Oven Roasted sold $394,000 of consumer electronics during July under a two-year warranty. The cost…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Problem #1. Your uncle has a taxable income of $85,142 last year. If he files as a head of…
A: A tax liability seems to be a tax that is owed to a taxing body or that has accrued for payment at a…
Q: During Year 11, Pacilio Security Services experienced the following transactions: Paid the sales…
A: CFS stands for Cash Flow Statement which states the financial condition of the business as well as…
Q: Pre pare a statement of cash flow using the indirect method
A: Net increase (decrease) in cash 55700 Beginning cash balance 48600 Ending cash balance…
Q: Using the above account balances, compute working capital and current ratio. Round "Current ratio"…
A: Introduction : Working capital is the amount of money that a company needs to run its business on a…
Q: Lucky Company's direct labor information for the month of February is as follows: Actual direct…
A: Lets understand the basics. For calculating actual direct labor rate per hour, we need to use below…
Q: The following information pertains to Q Company: Trade accounts receivable, net of P10,000 credit…
A: Current receivables are those amounts which is payable within 12 months. These are amounts which…
Q: QS 9-13 (Algo) Recording warranty repairs LO P4 On December 1, Home Store sells a mower (that costs…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Which of the following should form part of the cost of investment property?
A: Investment refers to any amount of money that is spent to earn the benefit or make profits from the…
Q: Cari Tank (CT) produces and sells water tanks for the Regional market. The following are estimates…
A: Break even (units)=Fixed annual costSelling Price-Variable cost per unit Sale at desired profit…
Q: TIOO
A: Solution: Both tile and wood floors have the same cleaning expenses. Only the installation prices…
Q: Debit Credit Cash $31,000 Accounts Receivable 7,400 Prepaid Insurance 21,000 Accounts Payable…
A:
Q: Classify each of the following as: Extraordinary Repairs, Asset Improvements or Ordinary Maintence…
A: Overhauling an engine in a large truck- Ordinary Maintenance and Repairs Exterior and interior…
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Relevant data from the Poster Companys operating budgets are: Additional data: Capital assets were sold in January for $10,000 and $4,500 in May. Dividends of $4,500 were paid in February. The beginning cash balance was $60,359 and a required minimum cash balance is $59,000. Use this information to prepare a cash budget for the first two quarters of the yearCash budget The controller of Mercury Shoes 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, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent 12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. 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 June 1 include cash of 42,000, marketable securities of 25,000, and accounts receivable of 198,000 (150,000 from May sales and 48,000 from April sales). Sales on account in April and May were 120,000 and 150,000, respectively. Current liabilities as of June 1 include 13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 24,000 will be made in July. Mercury Shoes regular quarterly dividend of 15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of 40,000. Instructions Prepare a monthly cash budget and supporting schedules for June, July, and August. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?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?
- Relevant data from the operating budget of The Framers are: Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May The beginning cash balance was $50,000 and a required minimum cash balance is $10,000. Prepare a cash budget for the first two quarters of the 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 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.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.
- Budgeted income statement and supporting budgets for three months Bellaire Inc. gathered the following data for use in developing the budgets for the first quarter (January, February, March) of its fiscal year: Estimated sales at 125 per unit: Estimated finished goods inventories: Work in process inventories are estimated to be insignificant (zero). Estimated direct materials inventories: Manufacturing costs: Selling expenses: Instructions Prepare the following budgets using one column for each month and a total column for the first quarter, as shown for the sales budget: Prepare a sales budget for March. Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March. Prepare a factory overhead cost budget for March. Prepare a cost of goods sold budget for March. Prepare a selling and administrative expenses budget for March. Prepare a budgeted income statement with budgeted operating income for March.Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.: Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 35,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions Prepare a budgeted income statement for 20Y9. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?