Prepare a cash budget for March for Gado Company.
Q: Consider the following information for Huntersville Inc. for the fiscal year ended December 31.…
A: Schedule of Cost of goods manufactured Direct materials: Beginning raw material inventory…
Q: Identify six examples of areas that the auditor will likely to consider in trying to obtain good…
A: Obtaining an understanding of company's environment, its internal control is a continuous process.…
Q: Exercise 17-3 (Algo) Computing plantwide overhead rate LO P1 Dade Metals manufactures patio…
A: Introduction: A company's plantwide overhead rate is indeed a single overhead rate used to allocate…
Q: If demand for one year is 25,000 units, relevant ordering cost for each purchase order is $210 and…
A: The economic order quantity (EOQ) is a quantity that a company should buy to minimize its cost of…
Q: What is the net book value of asset
A: Calculation given in next step Net book value is the historical cost of an asset minus the amount…
Q: Mar 31 Sales Revenue Income Summary 31 Income Summary Closing Entries Sales Returns Sales Discounts…
A: The income statement tells about the profitability of the business for the current period. The…
Q: Quick Study Solutions QS 13-1 Characteristics of corporations LO¹ Of the following statements, which…
A: Lets understand the basics. Corporation form of entity is very useful in current business scenario.…
Q: on On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure…
A: A.the amount of cost transferred from Finished Goods to Cost of Goods Sold during the period. Its…
Q: Prepare the entries for transaction below and indicate what journal it is 21 august issued a $600…
A: The primary and foremost reporting of the business transactions is to be done in the journal entry…
Q: You are making a proposal to start a corporation that would require invested capital of P9,000,000…
A: Goodwill: When one firm is acquired by another, an intangible asset known as goodwill is transferred…
Q: Prepare a post closing trial balance using the amounts on the second picture. My instruction booklet…
A: Post Closing Trail Balance :— Post Closing Trail Balance is the listing of all balance sheet…
Q: Sheffield Corp. received a check for $19080 on July 1, which represents a 6-month advance payment of…
A: Unearned rent revenue is the amount which represents the advance money received for the services or…
Q: Hess Company's inventory records show the following data for the month of September: Units…
A: Last-In, First-out (LIFO): LIFO is an acronym that refers to a system of inventory accounting called…
Q: Time left 0:21:5 Simone Company had no beginning work in process. During the period, 15700 units…
A: Units started into production=Units completed during the period+Units in ending work in…
Q: Botosan Factory has budgeted factory overhead for the year at $13,500,000, and budgeted direct labor…
A: Introduction:- The following formula used to calculate Actual factory overhead applied as follows…
Q: Problem #4 An automated assembly robot that cost $300,000 has a recovery period of five years with…
A: Depreciation is the amount that is charged on the fixed assets by which the asset value decreases…
Q: Explain how “job costing” is a useful technique to be adopted in your firm.
A: Job costing systems in service organizations are similar to those used by manufacturing companies.…
Q: Explain 8 negative impacts of implementing software-based Accounting Information System (AIS)…
A: INTRODUCTION: An organization's decision-making processes use an accounting information system…
Q: Sarah purchases a set of furniture for RM3956.52 and sells it at X ringgit. If the operating…
A: Lets Assume Sales Price is RM X. Profit Margin is 35% on sales, hence it will be 0.35X We know that…
Q: A printing equipment cost P500,000 and the cost of handling and installing is P30,000. The life of…
A: Depreciation is charged to record reduction in value of fixed assets over the period of time.…
Q: Champ Incorporated budgets the following sales in units for the coming two months. Each month's…
A: Production Budget :— It is functional budget that forecast the units & amount required for…
Q: Information for two alternative projects involving machinery investments follows. Project 1 requires…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Q: QS 13-9 Interpreting journal entries for share issuances LO³ Each of these entries was recently…
A: Lets understand the basics. Journal entry is required to make to record event and transaction that…
Q: Every company or organisation placed inventory as an important aspect for their businesses. Discuss…
A: Inventory can be defined as assets held for sale in the ordinary course of business or in the…
Q: What purpose is served by preparing a trial balance in the accounting cycle?
A: Trial Balance: it is the statement of account balance which is prepared from closing balances of the…
Q: Required information Exercise 9-12 (Algo) Record bonds issued at a premium and related semiannual…
A: Given information, Face value of bonds=$380,000 Stated interest rate =8% Carrying value of bonds…
Q: R Company has the following production information available for June: Total materials costs…
A: Total manufacturing cost is a combination of material cost and conversion cost. So the sum of…
Q: Required information [The following information applies to the questions displayed below.] Data for…
A: According to the given question, we are required to compute the net operating income increase or…
Q: Robust Resources expects to sell 420 units of Product A and 420 units of Product 8 each day at an…
A: Budgeted sales are the amount of sales that are expected to sell by the entity during a specific…
Q: Accounts payable Accounts receivable Accumulated depreciation - equipment Allowance for…
A: Balance Sheet - Balance Sheet is the financial statement that includes Assets, Liabilities and…
Q: Redlands Inc. made the following investments on January 1, 2020, its first year of business: Item…
A: Depreciation Expenses There are different method which are applicable for calculation of…
Q: Determine the following ratios i) Current ratio ii) Acid test ratio iii) Average stock iv) Adjusted…
A: Here we Firstly find the Nature of all the elements given in question :— 1) Overdraft :— Borrow…
Q: Diego Company manufactures one product that is sold for $77 per unit in two geographic regions—the…
A: Under absorption costing, the fixed costs are deferred in ending inventory but in variable costing,…
Q: Gr Current assets Property, plant & equipment, net Identifiable intangible assets Current…
A:
Q: QS 13-12 Dividend allocation between classes of shareholders LO5 The equity section of the Holden…
A: Shares- The company's financial assets are its shares. The value of the shares varies according to…
Q: Textra produces parts for a machine manufacturer. Parts go through two departments, Molding and…
A: Departmental Overhead Rate: An expenditure rate that is determined for each department in the…
Q: (b) David commenced to trade on 1 July 2017 and prepared accounts to 31 December 2017 and to 31…
A: In the context of the given question, we are required to compute the capital allowances for the…
Q: Future costs that do not differ among the alternatives are not relevant in a decision.
A: In accounting when it comes to making decisions we classify costs into different types or…
Q: If the merchandise costs $6,000, insurance in transit costs $500, tariff costs $50, processing by…
A: Processing the purchase order and the company receiving dock personnel costs are not included in the…
Q: Provide an example of why a trial balance may not balance.
A: A trial balance is a statement that shows the balances in all of a corporation's general ledger…
Q: The 2018 income statement and the 2018 comparative balance sheet of Ghent River Camp, Inc., have…
A: Cash Flow Statement There are mainly three parts in cash flow statement. The details are listed out…
Q: The law firm of Furlan and Benson accumulates costs associated with individual cases, using a job…
A: Job order costing is the method of recording cost for each job separately. It is used where the jobs…
Q: Diego Company manufactures one product that is sold for $77 per unit in two geographic regions—the…
A: The costing system using which the cost related to a product is measured based on its nature…
Q: Problem 4 - Prepare Closing Entries and a Post-Closing Trial Balance Required:…
A: Closing Entries - After the financial statement has been completed, closing entries are the journal…
Q: Please answer 4a above
A: Introduction:- Return on investment is calculated by dividing the net income on an investment by the…
Q: Craftmore Machining reports the following budgeted overhead cost and related data for this year.…
A: Overhead Rate: A cost that is allotted to the manufacturing of a product or service is referred to…
Q: Can you please help me with part C
A: Here discuss about the details of Price change the cost of the production which was lead to increase…
Q: Where did you get your values for months? The 20yrs 2 months and the 18 yrs 4 months.
A: The solution regarding your confusion how the cheapest to deliver the bond values of the bond A and…
Q: Employer journal entry for Defined Benefit Pension
A: In a defined benefit (DB) pension plan, an employer guarantees a certain pension payment, lump-sum…
Q: In preparation for developing its statement of cash flows for the year ended December 31, 2021,…
A: Cash Flow from Investing Activities - Cash Flow from Investing activities is those activities that…
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.
Using the following information:
- Beginning cash balance on March 1, $75,000.
- Cash receipts from sales, $302,000.
- Cash payments for direct materials, $134,000.
- Cash payments for direct labor, $70,000.
- Cash payments for overhead, $36,000.
- Cash payments for sales commissions, $8,000
- Cash payments for interest, $180 (1% of beginning loan balance of $18,000)
- Cash repayment of loan, $18,000.
Prepare a
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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.A company has prepared the operating budget and the cash budget. It is now preparing the budgeted balance sheet. Identify the document that contains each of these balances. A. cash B. accounts receivable C. finished goods inventory D. accounts payable E. equipment purchasesBudgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co., 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 March: Estimated sales for March: Estimated inventories at March 1: Desired inventories at March 31: Direct materials used in production: Anticipated cost of purchases and beginning and ending inventory of direct materials: Direct labor requirements: Estimated factory overhead costs for March: Estimated operating expenses for March: Estimated other revenue and expense for March: Estimated tax rate: 30% Instructions 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. Work in process at the beginning of March is estimated to be 15,300, and work in process at the end of March is desired to be 14,800. Prepare a selling and administrative expenses budget for March. Prepare a budgeted income statement for March.
- A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?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 The budget director of Birding Homes Feeders 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 January: Estimated sales for January: Estimated inventories at January 1: Desired inventories at January 31: Direct materials used in production: Anticipated cost of purchases and beginning and ending inventory of direct materials: Direct labor requirements: Estimated factory overhead costs for January: Estimated operating expenses for January: Estimated other revenue and expense for January: Estimated tax rate: 25% Instructions Prepare a sales budget for January. Prepare a production budget for January. Prepare a direct materials purchases budget for January. Prepare a direct labor cost budget for January. Prepare a factory overhead cost budget for January. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be 9,000, and work in process at the end of January is estimated to be 10,500. Prepare a selling and administrative expenses budget for January. Prepare a budgeted income statement for January.
- 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.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.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?
- Static budget for a service company A hank manager of City Savings Rank Inc, uses the managerial accounting system to track the costs of operating the various departments within the bank. The departments include Cash Management, Trusts. Commercial Loans Mortgage Loans. Operations, Credit Card, and Branch Services. The static budget and actual results for the Operations Department are as follows: a. What information is provided by the budget? Specifically, what questions can thebank manager ask of the Operations Department manager? b. What information does the static budget fail to provide? Specifically, could the budgetinformation be presented differently to provide even more insight for the bank manager?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?