Use the information provided below to prepare the following for November and December 2021: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATION The following budgeted information was provided by Sentinel Enterprises: 1. The expected bank balance on 31 October 2021 is R20 000 (favourable). 2. Credit sales are forecast as follows: October 2021 November 2021 December 2021 R280 000 R240 000 R320 000
Q: QUESTION 4 REQUIRED Use the information provided below to prepare the following for Xpanda Limited…
A: What is meant by Budgeting? It is the process of estimating the future cash flows by doing market…
Q: cash budget by quarters.
A: Cash budget is an estimate of opening balance, receipts, disbursements and closing balance of cash…
Q: PRS company is preparing cash budget for the forthcoming year with the following details: 151 2nd…
A: A cash budget is a statement that is prepared so as to estimate the cash position over a specific…
Q: Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019.…
A: Ending cash balance = Total cash available - Total cash disbursements Ending balance of current…
Q: You are required to prepare the cash budget for the two months of January and February 2021. The…
A: Cash budget is one of the type of budget which shows expected cash receipts, expected cash payments…
Q: iven below to answer the following questions: Prepare the Cash Budget for January, February and…
A: A cash budget refers to the form of the budget which reflects the sum value of expected cash inflows…
Q: The following information is applicable to Shine Wholesalers for the year 2020: Budgeted sales: ● ●…
A: A cash budget is prepared to show all the cash receipts from all operating sources and the…
Q: C. The Afghanistan Bank has asked AUAF Printing Inc. for a budgeted balance sheet for the year ended…
A: In this problem we will first prepare Cash A/c from the available information. Then…
Q: Use the information given below to prepare the following for Altech Limited for July and August…
A: Working Notes for 1.1 : Sales in the month of June, 2021 = 2,00,000 = Cash portion = 30% *…
Q: 1. What are the budgeted cash collections for February 202x? P101,800 P63,800 P66,000 a. с. b. d.…
A: Jan Financial information Cash 8,000 Account receivable 40,000…
Q: REQUIRED Prepare the Cash Budget for January, February and March 2021. (Provide separate monetary…
A: Interest Payment = 200,000 x 15% x (1/12) = 2,500 Particulars January February March…
Q: Use the information provided below to prepare the following for November and December 2021: 4.1…
A: What is meant by Budgeting? It is the process of estimating the future cash flows by doing market…
Q: Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019:…
A: First we need to calculate cash collection from credit sales. Particulars March April May June…
Q: Use the information provided below to prepare the Cash Budget for January and February 2023:…
A: Cash Budget can be prepared only for the cash income and expenses. Hence items which are non cash in…
Q: Cali Industries prepares budgets to help manage the company. Cali is budgeting for the fiscal year…
A: The budget is prepared ro estimate the requirements for the future period.
Q: p ness to borrow money during this quarter. Extracts from the sales and purchases budgets are…
A: Part C Management cannot achieve the cash balance.
Q: Prepare a cash budget for the month ended May 31, 2019. Campton Company anticipates a cash balance…
A: Cash budget is the summary of the total cash balances, cash receipts and payments for the period for…
Q: Grants Co has planned a cash budget for the third quarter of 2020. The cash balance on July 1, 2020,…
A: Working W.N. 1: Salaries are payable @1800000 per annum. Monthly wages= 1,800,000/12= 150,000 per…
Q: Hope Morris Cycle prepares an annual cash budget by quarters. Its cash budget is based on the…
A: Cash Budget The purpose of preparing the cash budget is to know the estimated cash inflow and and…
Q: The Sino-Fizer Company is concerned about the cash flow of the company. They consulted you to…
A: Cash Budget is prepared to gain an understanding of how much cash inflow and outflow shall incur in…
Q: B. GreenHarvest has prepared a Cash Budget for JANUARY, shown below (* (GreenHarxest cash balance as…
A: Budget refers to the statement prepared by the government, individual, and organization based on the…
Q: A Saudi printing supply has applied for a loan. Riyad bank has requested a budget balance sheet at…
A: A balance sheet is a financial statement that represents the financial position of a company as on a…
Q: The Sino-Fizer Company is concerned about the cash flow of the company. They consulted you to…
A: Budgeting is the method to forecast the future cashflows, sales, production and other important…
Q: preparing the cash budget for the business for the fourth quarter of 2021. It is customa business to…
A: Part c) Management cannot achieve the cash balance.
Q: the task of preparing the cash budget for the business for the quarter ending September 30, 2022.…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: The Sino-Fizer Company is concerned about the cash flow of the company. They consulfed you to…
A: Cash Budget The preparation of cash budget is important for the business which can make the…
Q: Using a separate columnar worksheet or Excel worksheet, prepare a Cash Budget by month for the…
A: Cash budget in the business shows expected cash receipts and expected cash payments from the…
Q: The following information is applicable to Shine Wholesalers for the year 2020: Budgeted sales: July…
A:
Q: Here are the relevant estimates for the budget preparation of Marvel Corporation for the fourth…
A: Cash Budget - Cash Budget is the estimation made by the company on the basis of past performance. It…
Q: REQUIRED Use the following information provided by Ashton Enterprises to prepare the: 5.1 Debtors…
A: 5.1 Statement showing Debtors collection schedule for the months of January & February 2021…
Q: Pearl Poodle Grooming is preparing a budgeted income statement for 2021. Predicted sales for the…
A: Formula: Net Income = Revenues - expenses Deduction of expenses from revenues called Net Income.
Q: A. Prepare the cash budget of Meridian Machine Tools LLC for March to May 2020 from the following…
A: What is a cash budget? It is a future estimation of the expected cash inflow (Cash receipts from…
Q: repare a cash budget for Campton Company for the month of May 2019.
A:
Q: The following information was provided by Intel Enterprises: 1. The bank balance on 31 December 2022…
A: A cash budget is a budget prepared by the company at the beginning of the period that contains the…
Q: Use the information provided below to prepare the following for January and February 2023:…
A:
Q: The following information is applicable to Shine Wholesalers for the year 2020: Budgeted sales:…
A: 1) Sales Working A) Cash and credit sales Particulars June July August…
Q: Question 4 Use the information provided below to prepare the following for January and February…
A: Debtors Collection Scheduled :— It is a scheduled that provides net Cash collection from the…
Q: The Sino-Fizer Company is concerned about the cash flow of the company. They consulted you to…
A: Calculation of amount collected from sales for the 4 months ending 30 April 2019 : Months…
Q: Kupa Ltd has approached to assist in preparing a cash budget. The annual and projected sales are…
A: Sales refer to the amount of revenue generated by selling the products or goods produced or…
Q: Midus ind has the following data for the month ended on March 31. Prepare cash budget for the month…
A: To identify the expected disbursements and receipts of cash for a given period of time, cash budget…
Q: The following information pertains to Yoyo Projects for the three months ended 31 May 2020:…
A: Cash budgets are prepared to estimate the flow of cash in the entity during the future period. It…
Q: SEATECH INC. Cash Budget For the Months of April, May, and June 2019 April May June Beginning cash…
A: In requirement B it is stated that the company wants to maintain a minimum cash balance of $10,000…
Q: Use the information provided below to prepare the following for January and February 2023: 4.1…
A: 1) debtors collection schedule
Q: Recent and forecasted sales: October $280,000 December $161,000 February $413,000 April $280,000…
A: A budget is a forecast of revenue and expenses for a certain future period of time that is generally…
Q: QUESTION 1 REQUIRED Prepare the Cash Budget for a project of Aston Enterprises for the period 01 May…
A: Cash budget of the business shows expected cash receipts and cash payments to be made along with…
Q: Revenue (20% for cash and 80% on credit) 360 000 380 000 400 000
A: Particulars November December Opening balance Receipts: -…
Q: Problem 1: ABC Corporation is preparing its sales and receivable budget for the year 2022. Details…
A: Answer - Working Note 1 : Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4…
Q: You are required to prepare the cash budget for the two months of January and February 2021. The…
A: Cash budget is one of the important budget of the business. It shows expected cash receipts,…
Q: Required: Prepare a cash collection summary from sales for the first quarter of 2021.…
A: Cash budget :- it is a document which manages the Cash flow of the business.it show the net effect…
Q: Use the information below to answer question 1 to 22. The financial controller of BOE Ltd. is…
A: The cash budget is prepared to estimate the cash requirement or expenses in the future period.
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.
Step by step
Solved in 5 steps with 3 images
- A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent inflation rate. Listed below are selected items from next years budget before the adjustment. After adjusting for the 3 percent inflation rate, what is the companys total budget for the selected items before taxes for next year? a. 858,150 b. 860,412 c. 810,971 d. 858,971Use the information provided by Tech Talk to prepare the following for March and April 2024: 1.1 Cash Budget 1.2 Debtors Collection Schedule INFORMATION The following information was provided by Tech Talk: 1. Tech Talk expects to have a favourable bank balance of R70 000 on 28 February 2024. 2. Budgeted sales figures for 2024 are as follows: January R420 000 R470 000 3. 4. 5. 6. 7. Cash sales Credit sales 9. February R470 000 R490 000 Total purchases March R610 000 R620 000 Thirty percent (40%) of the cash sales is to informal traders who are entitled to a discount of 20%. Collections from debtors are usually as follows: • 80% is collected in the month after the sale. 20% is collected two months after the sale. Purchases of inventory are expected to be as follows: January R310 000 February R360 000 April R650 000 R600 000 March R300 000 Sixty percent (60%) of the purchases is for cash to take advantage of a discount of 15%. The balance is purchased on credit. Creditors are paid two…REQUIRED Use the information provided below to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATION The following information was provided by BN Traders: 1. The bank balance on 28 February 2024 is expected to be R100 000 (unfavourable). The sales figures for the first four months of 2024 are expected to be as follows: 2 January March R1 500 000 R1 000 000 3. 4. 4.1 4.2 5. 6. 7. 8. 9. February R1 100 000 Cash sales usually make up 30% of the total sales. The balance of the sales is on credit. (Separate entries are required for cash sales and collections from credit sales.) Credit sales are normally collected as follows: 30% in the month of the sale, and these debtors are entitled to a 3% discount 65% in the month after the sale The rest is usually written off as bad debts. Purchases from February to April 2024 are expected to be as follows: February March R320 000 R350 000 Cash purchases Credit purchases April R1 200 000 R360 000…
- 2022. The interest rate is 15%. 9. Equipment will be purchased on credit during March 2022 for R100 00. A deposit of 20% vill be paid during March 2022. The balance plus finance charges of R10 000 will be paid in ten equal instalments commencing April 2022. 10. Cash operating expenses are expected to amount to R30 000 for February 2022 and are expected to increase by 5% per month thereafter.REQUIRED Use the following information provided by Ashton Enterprises to prepare the: 5.1 Debtors Collection Schedule for January and February 2021. 5.2 Cash Budget for January and February 2021. Note: Where applicable, round off amounts to the nearest Rand. INFORMATION The bank balance on 31 December 2020 is expected to be R40 000 (favourable). Expected credit sales are as follows: December 2020 R360 000 1. 2. 3. 4. 5. 6. 7. 8. 9. * * January 2021 R390 000 February 2021 R420 000 11 Credit sales usually make up 60% of the total sales. Cash sales make up the balance. Credit sales are normally collected as follows: 20% in the month in which the transaction took place. These debtors are entitled to a 5% discount. 75% in the following month. The rest is usually written off as bad debts. The mark-up is 25% on cost. The goods that are sold each month are replaced in the same month. The ratio of cash purchases to credit purchases is 3:1 respectively. Creditors are paid in the month after the…REQUIRED Use the following information provided by Ashton Enterprises to prepare the: Debtors Collection Schedule for January and February 2021. 5.1 5.2 Cash Budget for January and February 2021. Note: Where applicable, round off amounts to the nearest Rand. INFORMATION 1. The bank balance on 31 December 2020 is expected to be R40 000 (favourable). 2. Expected credit sales are as follows: December 2020 January 2021 February 2021 R360 000 R390 000 R420 000 3. Credit sales usually make up 60% of the total sales. Cash sales make up the balance. Credit sales are normally collected as follows: 20% in the month in which the transaction took place. These debtors are entitled to a 5% discount. 4. 75% in the following month. The rest is usually written off as bad debts.
- Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows: December 2022 January 2023 February 2023 R576 000 R540 000 R648 000 3. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows: December 2022 January 2023 February 2023 R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the…REQUIRED Use the information provided below to prepare the following for Protea Limited for January, February and March 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATION Protea Limited is in the process of formulating plans for the first quarter of 2023. 1. The following sales figures show the growth expected: Year Month 2022 December 2023 January 2023 February 2023 March 2. 3. Sales R460 000 R560 000 R640 000 R720 000 7. Forty percent (40%) of the sales is expected to be for cash and the balance is on credit. Twenty percent (20%) of the credit sales is expected to be collected in the month of the sale and 75% in the month after the sale. The remaining 5% is usually written off as bad debts. Debtors who settle their accounts in the month of the sale are entitled to a 5% discount. 4. The purchase of inventory is the company's largest expenditure and the cost of these items equals 60% of the current month's sales (excluding any discounts). Sixty percent (60%) of the…Please draft a budgeted receipt schedule from debtors for the period of 1 January 2023 to 30 June 2023. Month of 2023 Budgeted total sales: 1. January 140 000 2. February 132 000 3. March 128 000 4. April 115 000 5. May 120 000 6. June 150 000 Additional information: Total sales for September 2022, October 2022, November 2022 and December 2022 were R 120 000, R128 000 and R134 000 and R140 000 respectively. The goods sold on credit were 60% of actual sales. Customers will pay their debt as follows: . ⚫ 0% in the first month after the month of sale • 60% in the second month after the month of sale • 30% in the third month after the month of sale 10% in the fourth month after the month of sale
- Styles Abuhatim LLC has given the following particulars. You are required to prepare a cash budget for the three months ending 31st December 2019 Months Sales Materials Wages ( OMR) Over heads (OMR) (OMR) (OMR) August September October 20000 10200 3800 1900 21000 10000 3800 2100 23000 9800 4000 2300 November 25000 10000 4200 2400 December 30000 10800 4500 2500 Credit terms are 1.. Sales /Debtors 10% sales are on Cash, 50% of the credit sales are collected in next month and the balance in the following month 2. Creditors- materials 2 months Wages 1 month -1 month Overheads 3. Cash balance on 1st October is expected to be Ro.8000 4. A machinery will be installed in August at a cost of RO.100000, the monthly instalment of RO.5000 is payable from October onwards 5. Dividend at 10% on preference share capital RO.300,000 will be paid on 1* December 2019 6. Advance to be received for the sale of vehicles RO.20000in December 7. Income tax to be received in December RO.5000Develop your enterprise budgeting policy for the second quarter of 2022 and prepare your cash budget for the period. (ii) The forecasted sales are as follows: January February March April May June RM 185,000 RM 200,000 RM 360,000 RM 320,000 RM 195.000 RM 250,500 (iii) Sales shall consist of cash and credit sales. Credit sales shall have at least TWO (2) patterns of the collection. (iv) You have a space on your premises that is available for rental. Determine the rental value and collection policy. (vi) What will be your purchase payment pattern? It needs to have at least THREE (3) patterns of settlement. (vii) List down FIVE (5) types of monthly business expenses. Describe the payment policy. (viii) Illustrate ONE (1) investment that your business had invested in. The return on investment will be received in April. (ix) Describe ONE (1) depreciation expenses of non-current assets in your enterprise. (x) The cash amount as of 31 March 2022 is expenses…REQUIRED Use the information given below to answer the following questions: Prepare the Cash Budget for January, February and March Comment on the cash position of the company for the budgeted INFORMATION Some of the items in the Statement of Financial Position as at 31 December 2021 of Lomax Ltd are as follows: Current assets R Accounts receivable 1 300 000 Bank 235 000 Current liabilities Accounts payable (for material purchases) 95 000 Other current liabilities 700 000 The following forecasts have been made by Lomax Ltd for the first three months of 2022 for the bricks that it produces which are sold in pallets (with each pallet comprising 500 bricks): The sales manager anticipates the following credit sales: January February March 2 160 pallets 2 340 pallets 2 250 pallets The bricks are sold at a constant price of R500 per pallet. Ten percent (10%) of the sales are for cash and the rest is on credit. Debtors…