Piece of Pizza Company is preparing its master budget for its first year of business. It expects to sell 5,000 pizzas at $11 per pizza per month. It expects to collect 95% of the sales in the month of the sale and 5% in the following month. Calculate its accounts receivable balance at the end of its first month.
Q: eceivable, marketing principles such as the five C’s of Credit are employed. For companies operating…
A: Accounts receivable is the amount of money owed to a corporation for items or services given or used…
Q: Strand Group Inc started business in 2009 and for the year had the following transactions: 1.…
A: 1. Under double entries bookkeeping system one account is debited and other is credited. 2. The…
Q: Debt investments with an objective of collecting contractual cash flows is classified as: Group of…
A: Debt Investment: Investment in debt involves an investor providing money to a company or project…
Q: Frame Manufacturing Corporation has provided the following sales budget information: July August…
A: Cash budget is prepared to estimate the total cash received and total cash disbursement. It is…
Q: Cash, Php19,000; Prepaid Rent, Php500, Equipment, Php5,000 and Accounts Payable Php2.000. By the end…
A: Net Income is the difference between Total Revenues and Total Expenses. Formula: Net Income =…
Q: 1.If an employee works two jobs at two different wage rates for the same employer during the same…
A: Overtime pay seems to be the remuneration you earn for working outside of your typical working…
Q: The cost of equity is the rate associated with what the shareholders expect the corporation to earn…
A: Equity refers to the amount contributed by the owners of a entity i.e. shareholders of a entity.
Q: Statement of financial position information is useful for all of the following except to Group of…
A: Statement of financial position is the Balance Sheet. Balance Sheet represents the assets,…
Q: Dolittle and Dalley has $4,000 in purchases for January and $6,000 in purchases for February. It…
A: Total Cash payments for inventory in February = (Purchases for February ×70%) + (Purchases of…
Q: A. October 9, issued common stock in exchange for building, S40,000 B. October 12, purchased…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Half Moon, Inc. is a yoga mat manufacturer located in Portland, Oregon. The company has two product…
A: profit volume analysis table is prepared in order to find the profit of the company when ever…
Q: Sydney, Inc., a manufacturer of chocolate-coated mint candy acquired a patent on June 25, 2018, for…
A: Intangible assets shall be amortized over the useful life of intangible assets. Amortization…
Q: Which of the following is not considered an effective cash management strategy? Multiple Choice…
A: Cash management: It implies to a process that includes the management, collection, and effective…
Q: The purchase of treasury share does not affect Group of answer choices total assets. the amount of…
A: The treasury stock includes the shares that are repurchased from the shareholders of the business.
Q: Discuss 3 reasons why performance reporting is important
A: Performance Reporting: It is the consequence of an activity or the labor of a specific person that…
Q: Following particulars have been obtained from the accounts of a company. i) Remuneration of Managing…
A: Net profit for calculation of managerial remuneration is calculated by adjusting all the items…
Q: nternal control procedures for cash receipts do not equire that:
A: Solution Introduction Internal control Internal control is the policies and systems that are put in…
Q: Why are fixed assets depreciated on a firm’s balance sheet?
A: A balance sheet shows the final balances in a company's asset, liability, and equity accounts as of…
Q: The following information is available for Thalia Enterprises for 2018: Operating profit…
A: solution introduction free cash flow means the cash flow that is freely available to the business…
Q: Q2. You are a managerial accountant who has become privy to information about a takeover bid by your…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Organic Food Company's Cash account shows a $7,500 debit balance and its bank statement shows $6,560…
A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…
Q: The COVID-24 Food Kitchen provides hot meals to homeless and low-income individuals and families. It…
A: Non-profit organization are those business entities who work for the betterment of the society by…
Q: The following partial budget versus actual report was prepared for Otis the Great, a manufacturer of…
A: Static Budget Sales revenue = $108,000 - $18,000 = $90,000 Selling price = $90,000 / 50,000 = $1.80…
Q: Which one of the following represents the highest effective interest rate per yea
A: Here we will have to convert each option to its EAR i.e. effective annual rate. The compounding…
Q: Please provide journal entries for the following: Jessica Johansen started Sewn for You, a…
A: Journal entries are the basic method for recording financial transactions in the books of accounts.…
Q: Assume, for this question only, that the Computer Chip Division is selling all that it can produce…
A: Fixed cost means the cost which does not vary with the level of output. Variable cost means the cost…
Q: [The following information applies to the questions displayed below.] Ramirez Company installs a…
A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…
Q: _______ A term for the debts of a firm
A: A debt is an amount owing for borrowed cash. The lender agrees to lend cash to the borrower in…
Q: What types of Accounting are there
A: There are following types of accounting: 1. Financial accounting 2. management accounting 3. tax…
Q: er, Inc., a manufacturer of kayak ranches: Sand and Clay. Each lling costs. performance evaulation…
A: The answer is stated below:
Q: Montana Incorporated began the year with a retained earnings balance of $50,000. The company paid a…
A: Lets understand the basics. For calculating ending balance of retained earnings, we need to use…
Q: What is the annual percentage yield (APY) for money invested at an annual rate of (A) 4.37%…
A: APY (annual percentage yield) is used to estimate the potential gain from an investment or the final…
Q: Properly designed performance measures will help move the company toward meeting the goals of its…
A: The true or false question on performance measures has been answered hereunder : What are…
Q: 2. Grouse, Flicker, and Partridge are partners sharing profits and losses 20/40/40 respectively.…
A: Liquidation- Liquidation is the process of converting non-liquid assets to liquid assets...that is,…
Q: Montana Incorporated began the year with a retained earnings balance of $50,000. The company paid a…
A: Formula: Ending Retained Earnings = Beginning Retained Earnings - net loss - Dividends paid
Q: e) Prepare the bank reconciliation statement for the month ended 31 December 2021 une Harrison,…
A: A bank reconciliation statement reconciles an entity's bank account with its financial records by…
Q: Davison Inc. consists of two districts, A and B. The company as a whole had sales of$400,000, a…
A: Total traceable Fixed expense = Total contribution - combined segment margin
Q: Quigley Co. bought a machine on January 1, 2019 for $2,800,000. It had a $240,000 estimated residual…
A:
Q: The Constructing Department of MEC Company had 2,600 units in work in process at the beginning of…
A:
Q: The following balances were extracted from the books of Chanda at 31/12/19…
A: To calculate above ratios, first we have to prepare the Profit & loss statement and Balance…
Q: On January 1, 2021, Veronica Company negotiated a 15-year lease for a building with useful life of…
A: It is one of the types of lease in which the lessor will be the legal owner of the asset, but the…
Q: Bookworm Corporation maintains ending inventory for each month at 5% of the following month's sales.…
A: Units produced in March = Units sold in March + Desired Ending inventory - Beginning inventory…
Q: A company is trying to decide which product to manufacture. The following information is available:…
A: Product Making Decision: As a rule, product managers use a mix of three types of information when…
Q: lease answer question 1,2 and 3 An electrical component manufacturer budgets to sell 35,000 units…
A: CVP Analysis
Q: Do the balance sheet, income statement, and statement of cash flows contain all the information you…
A: The balance sheet is one of the three basic financial statements that are required for both…
Q: Revenue expenditures: Multiple Choice Are costs that do not materially increase a plant asset's life…
A: Capital expenditures are the ones that increase the asset life and debited to the cost of assets.
Q: RUZ, INCORPORATED Comparative Balance Sheets At December 31 2021 2020 Assets Cash $ 66,100 $…
A: Cash flow statement means the statement which shows the cash inflow and outflow during the specified…
Q: Which of the following is often used as the main repository of a company's historical data (l.e.,…
A: Introduction:- Data plays vital role in every business to take decisions It requires tools that can…
Q: For the year just completed, Hanna Company had net income of $104,500. Balances in the company’s…
A: Cash flows from operating activities: It is a section of the Statement of cash flow that explains…
Q: A balanced scorecard is the compatibility between personal goals and the goals of the organization.…
A: A balanced scorecard is a management tool for strategic performance of the organisation.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Cash 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?Barnstormer sells airplane accessories for $20 each. It expects sales of 120,000 units in quarter 1 and a 7% increase each subsequent quarter for the next 8 quarters. Prepare a sales budget by quarter for the first year.
- Refer to Cornerstone Exercise 8.1, through Requirement 1. FlashKick requires ending inventory of product to equal 20 percent of the next months unit sales. Beginning inventory in January was 3,100 practice soccer balls and 400 match soccer balls. Required: 1. Construct a production budget for each of the two product lines for FlashKick Company for the first three months of the coming year. 2. What if FlashKick wanted a production budget for the two product lines for the month of April? What additional information would you need to prepare this budget? FlashKick Company manufactures and sells soccer balls for teams of children in elementary and high school. FlashKicks best-selling lines are the practice ball line (durable soccer balls for training and practice) and the match ball line (high-performance soccer balls used in games). In the first four months of next year, FlashKick expects to sell the following: Required: 1. Construct a sales budget for FlashKick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter. 2. What if FlashKick added a third linetournament quality soccer balls that were expected to take 40 percent of the units sold of the match balls and would have a selling price of 45 each in January and February, and 48 each in March? Prepare a sales budget for Flash- Kick for the first three months of the coming year. Show total sales for each product line by month and in total for the first quarter.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. 156,000CASH 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 2014 and 2015: May 2014 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360.000 November 360,000 December 90,000 January 2015 180.000 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: May 2014 90,000 June 90,000 July 126,000 August 882.000 September 306,000 October 234,000 November 162,000 December 90,000 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 arc S2,700 a month. Income tax payments of 63,000 arc 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 2014. b. Prepare monthly estimates of the required financing or excess funds that 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 130 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.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 2016 and 2017. May 2016 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2017 180,000 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: May 2016 90,000 June 90,000 July 126,000 August 882,000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depredation 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 2016. 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 ail financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.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 2015 and 2016: May 2015 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2016 180,000 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: May 2015 90,000 June 90,000 July 126,000 August 882,000 September 306,000 October 234,000 November 162,000 December 90,000 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 2015. 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.
- Preparing a Direct Labor Budget Tulum Inc. makes a Mexican chocolate mix. Planned production in units for the first 3 months of the coming year is: Each box of chocolate mix takes 0.4 direct labor hour. The average wage is 17 per hour. Required: Prepare a direct labor budget for the months of January, February, and March, as well as the total for the first quarter.Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.
