Budgeting help LO23-5)On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of thecompany's sales are made on account The following information has been provided by Spicer's management.MonthCredit SalesJanuaryFebruaryMarch$ 300,000 (actual)400,000 (actual)557,000 (estimated)669,000 (estimated)800,000 (estimated)AprilMayThe company's collection activity on credit sales historically has been as follows.50%Collections in the month of the sale30Collections one month after the sale15Collections two months after the saleUncollectible accountsSpicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Itscash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarter.Compute Spicer's budgeted cash balance at the ends of March, April, and May.Cash balance on March 31Cash balance on April 30Cash balance on May 31Next >2 of 3< Preva

Cash Budgeting means a statement of cash receipts as well as cash payments for the period on the…

On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the ompany's sales are made on account The following information has been provided by Spicer's management Month Credit Sales $ 300,000 (actual) 400,000 (actual) 557,000 (estimated) 669,000 (estimated) 800,000 (estimated) January February March April May he company's collection activity on credit sales historically has been as follows. Collections in the month of the sale Collections one month after the sale Collections two months after the sale 50% 30 15 Uncollectible accounts Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Its ash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarte Compute Spicer's budgeted cash balance at the ends of March, April, and May. Cash balance on March 31 Cash balance on April 30 Cash balance on May 31 Next > 2 of 3

On March 1 of the current year, Spicer Corporation compiled information to prepare a cash budget for March, April, and May. All of the ompany's sales are made on account The following information has been provided by Spicer's management Month Credit Sales $ 300,000 (actual) 400,000 (actual) 557,000 (estimated) 669,000 (estimated) 800,000 (estimated) January February March April May he company's collection activity on credit sales historically has been as follows. Collections in the month of the sale Collections one month after the sale Collections two months after the sale 50% 30 15 Uncollectible accounts Spicer's total cash expenditures for March, April, and May have been estimated at $1,200,000 (an average of $400,000 per month). Its ash balance on March 1 of the current year is $500,000. No financing or investing activities are anticipated during the second quarte Compute Spicer's budgeted cash balance at the ends of March, April, and May. Cash balance on March 31 Cash balance on April 30 Cash balance on May 31 Next > 2 of 3

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 11CE: Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted...

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Capital expenditures budget On August 1, 20Y4. the controller of Handy Dan Tools Inc. is planning capital expenditures for the years 20Y5-20Y8. The controller interviewed several Handy Dan executives to collect the necessary information for the capital expenditures budget. Excerpts of the interviews are as follows: Director of Facilities: A construction contract was signed in May 20Y4 for the construction of a new factory building at a contract cost of $9,000,000. The construction is scheduled to begin in 20Y5 and completed in 20Y6. Vice President of Manufacturing: Once the new factor)' building is finished, we plan to purchase $3-6 million in equipment in late 20Y6. I expect that an additional $500,000 will lx-needed early in the following year (20Y7) to test and install the equipment before we can begin production. If sales continue to grow, I expect we'll need to invest another half million in equipment in 20Y8. Vice President of Marketing: We have really been growing lately. I wouldn't be surprised if we need to expand the size of our new factory building in 20YS by at least 25%. Fortunately, we expect inflation to have minimal impact on construction costs over the next four years. Additionally, 1 would expect the cost of the expansion to Ik- proportional to the size of the expansion. Director of Information Systems: We need to upgrade our information systems to wireless network technology. It doesn't make sense to do this until after the new factory building is completed and producing product. During 20Y7, once the factor)' is up and running, we should equip the whole facility with wireless technology. I think it would cost us $400,000 today to install the technology. However, prices have been dropping by 10% per year, so it should be less expensive at a later date. President: I am excited about our long-term prospects. My only short-term concern is financing the $5,000,000 of construction costs on the portion of the new factor)' building scheduled to be completed in 20Y5. Use the interview information above to prepare a capital expenditures budget for Handy Dan Tools Inc. for the years 20Y5-20Y8.
Shalimar 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 production budget for May.
619 - Please check my work in the attachment and provide explanation The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following: Cash balance on June 1 is $1,136. Actual sales for April and May are as follows: April May Cash sales $10,000 $18,000 Credit sales 28,900 35,000 Total sales $38,900 $53,000 Credit sales are collected over a 3-month period: 40% in the month of sale, 30% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible. Inventory purchases average 70% of a month's total sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month. Salaries and wages total $11,750 per month, including a $4,500 salary paid to the owner. Rent is $4,900 per month.…
E9-5A Budget Cash Flow The following various elements relate to Whitfield, Inc.'s cash budget for April of the current year. For each item, determine the amount of cash that Whitfield should receive or pay in April. a. At $28 each, unit sales are 5,000 and 6,000 for March and April, respectively. Total sales are typically 40% for cash and 60% on credit; 30% of credit sales are collected in the month of sale, with the balance collected in the following month. Uncollectible accounts are negligible. b. Merchandise purchases were $45,000 and $78,000 for March and April, respectively. Typically, 20% of total purchases are paid for in the month of purchase with a 5% cash discount. The balance of purchases is paid for (without discount) in the following month.…
NUBD Corporation has a P35,000 balance of account receivable at the beginning of its budget period. It has budgeted P160,000 credit sales and expects to collect 60% of these during the budget period.What is the ending balance of accounts receivable assuming that all but 15% of the beginning balance is collected during the budget period.
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.
Harbour Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. If sales on account are budgeted to be $246,000 for September and $284,000 for October, what are the budgeted cash receipts from sales on account for October?$fill in the blank 1
McMichael Inc. collects 30% of its sales on account in the month of the sale and 70% in the month following the sale. If sales on account are budgeted to be $189,000 for September and $214,000 for October, what are the budgeted cash receipts from sales on account for October?$fill in the blank 1
4. On October 1 of the current year, Molloy Corporation prepared a cash budget for October, November, and December. All of Molloy's sales are made on account. The following information was used in preparing estimated cash collections: August sales (actual) $ 40,000 September sales (actual) $ 50,000 October sales (estimated) $ 20,000 November sales (estimated) $ 70,000 December sales (estimated) $ 60,000 - Approximately 60% of all sales are collected in the month of the sale, 30% is collected in the following month, and 10% is collected in the month thereafter. (SHOW ALL CALCULATIONS! Points will be deducted if only the answer amount is given.) a. Budgeted collections from customers in October will total how much? b. Budgeted collections from customers in November will total how much? c. Budgeted collections from customers in December will total how much?
The controller for Eddy Co. has provided the following information pertaining to the cash Budget for the month of January. Projected January 1 Cash Balance $50,000 January Cash Payments for Materials $100,000 January Direct Labor Cash Payments $125,000 January Cash Collections from customers $500,000 January Sale of Securities $70,000 January Overhead Cash Payments $40,000 January Depreciation Expense $10,000 January Selling Expenses Cash Payments $20,000 Eddy's Cash Budget will report the following:
Please explain why and how as I don't get this part of the question below "The accounts receivable balance on January 1 of the current year was $70,000, of which $50,000 represents uncollected December sales and $20,000 represents uncollected November sales". Here is the question: (please show me the steps thoroughly) The LaGrange Corporation had the following budgeted sales for the first half of the current year: Cash Sales Credit Sales January........ $70,000 $340,000 February...... $50,000 $190,000 March.......... $40,000 $135,000 April............. $35,000 $120,000 May............. $45,000 $160,000 June............ $40,000 $140,000 The 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 sales: 60% in month of sale 30% in month…