Rr.20. Shamrock Corporation is projecting a cash balance of $31,000 in its December 31, 2021, balance sheet. Shamrock's schedule ofexpected collections from customers for the first quarter of 2022 shows total collections of $184,000. The schedule of expectedpayments for direct materials for the first quarter of 2022 shows total payments of $37,000. Other information gathered for the firstquarter of 2022 is as follows: sale of equipment $3,000; direct labour $79,000, manufacturing overhead $38,000; selling andadministrative expenses $41,000; and purchase of securities $16,000. Shamrock wants to maintain a balance of at least $27,000 cashat the end of each quarter.Prepare a cash budget for the first quarter.

Cash budget is a statement prepared by accountants to estimate cash revenue and cash expense .It is…

Answered: Prepare a cash budget for the first…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 11EB: Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase,...

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Gear Up Co. pays 65% of its purchases in the month of purchase, 30% in the month after the purchase, and 5% in the second month following the purchase. What are the cash payments if it made the following purchases in 2018?
Sheridan Corporation is projecting a cash balance of $32,100 in its December 31, 2019, balance sheet. Sheridan’s schedule of expected collections from customers for the first quarter of 2020 shows total collections of $197,950. The schedule of expected payments for direct materials for the first quarter of 2020 shows total payments of $46,010. Other information gathered for the first quarter of 2020 is sale of equipment $3,210; direct labor $74,900, manufacturing overhead $37,450, selling and administrative expenses $48,150; and purchase of securities $14,980. Sheridan wants to maintain a balance of at least $26,750 cash at the end of each quarter.Prepare a cash budget for the first quarter.
Crane Corporation is projecting a cash balance of $31,800 in its December 31, 2024, balance sheet. Crane's schedule of expected collections from customers for the first quarter of 2025 shows total collections of $196, 100. The schedule of expected payments for direct materials for the first quarter of 2025 shows total payments of $45, 580. Other information gathered for the first quarter of 2025 is sale of equipment $3, 180; direct labor $74, 200, manufacturing overhead $ 37,100, selling and administartive expenses $47,700; and purchase of securities $14,840. Crane wants to maintain a balance of at least $26, 500 cash at the end of the quarter. Prepare a cash budget for the first quarter.
The following information was extracted from NOVO cash budget for July 2019. The following data are as follows: Excess of cash available over disbursements is P700; cash balance as of July 1, 2019 is P 5,000 and a total cash disbursement for July is P22,500. The business can only borrow in round figures of P1,000 amounts. If the business is required to maintain a minimum cash balance of P100,000, how much money should be borrowed in July?
Mr. James Pastor, a financial analyst for ABC Company, has prepared the following actual sales and cash disbursement for the months of August to September 2020 and estimates for the months of October to December of the current year: Month Sales: August P5,000,000; September P6,000,000; October P4,000,000; November P2,000,000; and December P2,000,000 Cash Disbursements: August P4,000,000; September P3,000,000; October P6,000,000; November P5,000,000; and December P2,000,000. Pastor notes that historically, 30% of sales have been for cash. Of credit sales, 70% are collected 1 month after the sale, and the remaining 30% are collected 2 months after the sale. The firm wishes to maintain a monthly minimum cash balance of P250,000. Balances above this amount would be invested in short-term government securities (marketable securities) whereas any deficits would be financed through short-term bank borrowings (notes payable). The beginning cash balance at October 1 is P1,200,000.a. Prepare…
Presented below is selected information pertaining to the Cone Company:§ Cash balance, January 1, 2021- P13,000§ Accounts receivable, January 1, 2021- P19,000§ Collections from customers in 2021- P210,000§ Capital account balance, January 1, 2021- P38,000§ Total assets, January 1, 2021- P75,000§ Cash investment added, July 1, 2021-P5,000§ Total asset, December 31, 2021- P101,000§ Cash balance, December 31, 2021- P20,000§ Accounts receivable, December 31, 2021- P36,000§ Merchandise taken for personal use during 2021- P11,000§ Total liabilities, December 31, 2021- P41,000How much is the net income for 2021?
Presented below is selected information pertaining to the Cone Company:§ Cash balance, January 1, 2021- P13,000§ Accounts receivable, January 1, 2021- P19,000§ Collections from customers in 2021- P210,000§ Capital account balance, January 1, 2021- P38,000§ Total assets, January 1, 2021- P75,000§ Cash investment added, July 1, 2021-P5,000§ Total asset, December 31, 2021- P101,000§ Cash balance, December 31, 2021- P20,000§ Accounts receivable, December 31, 2021- P36,000§ Merchandise taken for personal use during 2021- P11,000§ Total liabilities, December 31, 2021- P41,000How much is the net income for 2021? A. 28,000 B. 26,000 C. 30,000 D. 22,000
Suppose that the Sales in December 2019 were 26,630. The sales are expected to grow by 7% in January 2020, by 5% in February 2020, and by 5% in March 2020. After that, the sales are expected to grow by 11%. The company's cash collection is as follows: 71% is collected in the same month and the remainder in the next month. What is the cash collection for July, 2020?
Suppose that the Sales in December 2019 were 78,893. The sales are expected to grow by 15% in January 2020, by 4% in February 2020, and by 5% in March 2020. After that, the sales are expected to grow by 4%. The company's cash collection is as follows: 22% is collected in the same month, 22% is collected in the next month, and the remainder in the following month. What is the cash collection for June, 2020?
Suppose that the Sales in December 2019 were 41,498. The sales are expected to grow by 5% in January 2020, by 10% in February 2020, and by 15% in March 2020. After that, the sales are expected to grow by 9%. The company's cash collection is as follows: 24% is collected in the same month, 47% is collected in the next month, and the remainder in the following month. What is the cash collection for July, 2020?
Transformers, Inc. prepared cash estimates for the 3rd quarter of 2022 (3-months). The following estimates were developed for certain items: July August September Cash sales P 60,000 P 80,000 P 150,000 Credit sales 30,000 60,000 90,000 Purchases 60,000 55,000 75,000 Payroll 40,000 50,000 60,000 Other expenses 20,000 25,000 30,000 In June, credit sales totaled P50,000 and purchases totaled P60,000. May credit sales were P70,000. Accounts receivable collections amount to 50% in the month after the sale and 40% in the second month after the sale; 10% of the receivables are never collected. Payroll and other expenses are paid in the month incurred. Sixty percent of the purchases are paid in the month incurred and the remainder is paid in the following month. A P20,000 tax payment is due on August 30. The cash balance was P60,000 on July 1 and the company maintain a minimum cash balance of P50,000. Any deficiency in cash can be withdrawn in a multiples of P10,000 from…
Serendipity, Inc. prepared cash estimates for the 3rd quarter of 2021 (3-months). The following estimates were developed for certain items: July August September Cash sales P 60,000 P 80,000 P 150,000 Credit sales 30,000 60,000 90,000 Purchases 60,000 55,000 75,000 Payroll 40,000 50,000 60,000 Other expenses 20,000 25,000 30,000 In June, credit sales totaled P50,000 and purchases totaled P60,000. May credit sales were P70,000. Accounts receivable collections amount to 50% in the month after the…

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