Cash Budget. Introduction: Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

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Answer 1

Question

Chapter 4, Problem 1SE

a)

Summary Introduction

To calculate: Cash Budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

b)

Summary Introduction

To calculate: Changes in cash balance.

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Sample Problem: Use the following data to construct a statement of cash flows using the direct and indirect methods. 2020 2019 Cash P4,000 P14,000 Accounts receivable 25,000 32,500 Prepaid insurance 5,000 7,000 Inventory 37,000 34,000 Fixed assets 316,000 270,000 Accumulated Depreciation Total assets Accounts payable P18,000 P16,000 Wages payable 4,000 7,000 Note payable 173,000 160,000 Capital stock 88,000 84,000 Retained earnings Total Liabilities & Equity Sales Cost of goods sold (123,000) Depreciation expense (15,000) Insurance expense (11,000) Wage Expense Net Income During 2020 declared and paid dividends of P2,500 During 2020, ABC paid P46,000 in cash to acquire new fixed assets. The accounts payable was used only for inventory. No debt was retired during 2020. Prepare Statement of Cash Flow using; Direct Method Indirect Method

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…

a) Calculate the cash operating cycle of Stone Limited for the year ended 30 April, 2018 and 2019. b) Based on the result of the previous year end and the industry average. Draft a report addressed to the Board of Directors of Stone Limited analysing theperformance of the company for the year 2019

Answer 2

Question

Chapter 4, Problem 1SE

a)

Summary Introduction

To calculate: Cash Budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

b)

Summary Introduction

To calculate: Changes in cash balance.

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Answer 3

Question

Chapter 4, Problem 1SE

a)

Summary Introduction

To calculate: Cash Budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

b)

Summary Introduction

To calculate: Changes in cash balance.

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Answer 4

Question

Chapter 4, Problem 1SE

a)

Summary Introduction

To calculate: Cash Budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

b)

Summary Introduction

To calculate: Changes in cash balance.

Expert Solution & Answer

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Answer 5

Chapter 4, Problem 1SE

a)

Summary Introduction

To calculate: Cash Budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

b)

Summary Introduction

To calculate: Changes in cash balance.

Answer 6

Chapter 4, Problem 1SE

a)

Summary Introduction

To calculate: Cash Budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

Answer 7

Chapter 4, Problem 1SE

a)

Summary Introduction

To calculate: Cash Budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

Answer 8

b)

Summary Introduction

To calculate: Changes in cash balance.

Answer 9

b)

Summary Introduction

To calculate: Changes in cash balance.

Answer 10

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Answer 12

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Answer 13

Ch. 4.1 - Briefly describe the first four modified...Ch. 4.1 - Describe the overall cash flow through the firm in...Ch. 4.1 - Prob. 4.3RQ Ch. 4.1 - 4-B Why is depreciation (as well as amortization...Ch. 4.1 - Prob. 4.5RQ Ch. 4.1 - Prob. 4.6RQ Ch. 4.1 - Prob. 4.7RQ Ch. 4.2 - Prob. 4.8RQ Ch. 4.2 - Prob. 4.9RQ Ch. 4.3 - Prob. 4.10RQ

Cash Budget. Introduction: Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

Solution Summary: The author explains that cash budget is a money spending plan that estimates money inflows and out flows for business over time. It is used to assess whether the firm has adequate money to work.

To calculate: Cash Budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

To calculate: Changes in cash balance.

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Chapter 4 Solutions

Cash Budget. Introduction: Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

Solution Summary: The author explains that cash budget is a money spending plan that estimates money inflows and out flows for business over time. It is used to assess whether the firm has adequate money to work.

To calculate: Cash Budget. Introduction: Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.

To calculate: Changes in cash balance.

Want to see the full answer?

Chapter 4 Solutions

To calculate: Cash Budget.

Introduction:

Cash budget can be defined as a money spending plan which estimates the money inflows and outflows for a business over a particular timeframe. It is used to assess whether the firm has adequate money to work.