FINANCIAL ACCOUNTING UDEL W/ACCESS >IB
8th Edition
ISBN: 9781119268444
Author: Kimmel
Publisher: WILEY C
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Chapter 7, Problem 7.8AP
To determine
To prepare: Cash budget of Corporation B for the months of January and February
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Pharoah Company expects to have a cash balance of $64,800 on January 1, 2017. These are the relevant monthly budget data for
the first two months of 2017.
Collections from customers: January $89,800, February $164,800.
Payments to suppliers: January $58,800, February $93,800.
Wages: January $30,530, February $40,530. Wages are paid in the month they are incurred.
Administrative expenses: January $21,530, February $24,530. These costs include depreciation of $1,000 per month. All
1.
2.
3.
4.
other costs are paid as incurred.
Selling expenses: January $15,530, February $20,530. These costs are exclusive of depreciation. They are paid as incurred.
Sales of short-term investments in January are expected to realize $12,530 in cash. Pharoah Company has a line of credit at
a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of
$38,800.
5.
6.
Prepare a cash budget for January and February.
Ivanhoe Corporation prepares monthly cash budgets. Here are relevant data from operating budgets for 2025.
Sales
Purchases
Salaries
Administrative expenses
Selling expenses
Other data.
2.
January
$360,300
3.
121,000
4.
84,400
71,600
79,300
February
All sales and purchases are on account. Eudgeted collections and disbursement data are given below. All other expenses are paid in the
month incurred. Administrative expenses include $1,100 of depreciation per month.
$400,600
130,900
1. Collections from customers: January $330,600; February $379,000.
Payments for purchases: January $102,600; February $143,100.
Other receipts: January: collection of December 31, 2024, notes receivable $17,600; February: proceeds from sale of
securities $5,200.
Other disbursements: February $12,000 cash dividend.
81,200
73,900
86,400
The company's cash balance on January 1, 2025, is expected to be $47,700. The company wants to maintain a minimum cash balance
of $56,020.
Prepare a cash budget for January and…
The following information was taken from Concord Corporation cash budget for the month of July:
Beginning cash balance
$100000
Cash receipts
96000
Cash disbursements
136000
If the company has a policy of maintaining an end of the month cash balance of $100000, the amount the company would have to borrow is
Chapter 7 Solutions
FINANCIAL ACCOUNTING UDEL W/ACCESS >IB
Ch. 7 - A local hank reported that it lost 150,000 as the...Ch. 7 - Prob. 2QCh. 7 - Prob. 3QCh. 7 - Prob. 4QCh. 7 - Prob. 5QCh. 7 - Prob. 6QCh. 7 - Prob. 7QCh. 7 - Prob. 8QCh. 7 - Prob. 9QCh. 7 - Prob. 10Q
Ch. 7 - Prob. 11QCh. 7 - Prob. 12QCh. 7 - Prob. 13QCh. 7 - Prob. 14QCh. 7 - Prob. 15QCh. 7 - Prob. 16QCh. 7 - Prob. 17QCh. 7 - Prob. 18QCh. 7 - Prob. 19QCh. 7 - Prob. 20QCh. 7 - Prob. 21QCh. 7 - Prob. 22QCh. 7 - Prob. 23QCh. 7 - Prob. 24QCh. 7 - Prob. 25QCh. 7 - Prob. 26QCh. 7 - Prob. 27QCh. 7 - Prob. 28QCh. 7 - Match each situation with the fraud triangle...Ch. 7 - Prob. 7.2BECh. 7 - Prob. 7.3BECh. 7 - Prob. 7.4BECh. 7 - While examining cash receipts information, the...Ch. 7 - Prob. 7.6BECh. 7 - Luke Rove is uncertain about the control features...Ch. 7 - Prob. 7.8BECh. 7 - Prob. 7.9BECh. 7 - Prob. 7.10BECh. 7 - Prob. 7.11BECh. 7 - Prob. 7.12BECh. 7 - Prob. 7.13BECh. 7 - Prob. 7.14BECh. 7 - Prob. 7.1DIECh. 7 - Prob. 7.2DIECh. 7 - Prob. 7.3DIECh. 7 - Prob. 7.4ADIECh. 7 - Prob. 7.4BDIECh. 7 - Prob. 7.1ECh. 7 - Prob. 7.2ECh. 7 - Prob. 7.3ECh. 7 - Prob. 7.4ECh. 7 - Prob. 7.5ECh. 7 - Prob. 7.6ECh. 7 - Prob. 7.7ECh. 7 - Prob. 7.8ECh. 7 - Prob. 7.9ECh. 7 - Prob. 7.10ECh. 7 - Prob. 7.11ECh. 7 - Prob. 7.12ECh. 7 - Prob. 7.13ECh. 7 - Prob. 7.14ECh. 7 - Prob. 7.15ECh. 7 - Prob. 7.16ECh. 7 - Prob. 7.1APCh. 7 - Prob. 7.2APCh. 7 - Prob. 7.3APCh. 7 - Prob. 7.4APCh. 7 - Prob. 7.5APCh. 7 - Prob. 7.6APCh. 7 - Prob. 7.7APCh. 7 - Prob. 7.8APCh. 7 - Prob. 7CCCPCh. 7 - Prob. 7.1EYCTCh. 7 - Prob. 7.2EYCTCh. 7 - Prob. 7.3EYCTCh. 7 - Prob. 7.4EYCTCh. 7 - Prob. 7.5EYCTCh. 7 - Prob. 7.6EYCTCh. 7 - Prob. 7.7EYCTCh. 7 - Prob. 7.8EYCTCh. 7 - Prob. 7.9EYCTCh. 7 - Prob. 7.10EYCTCh. 7 - Prob. 7.1IFRSCh. 7 - Prob. 7.2IFRS
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- Budgeted selling and administrative expenses for King Tire Co. In P7-2 for the year ended December 31, 2016, were as follows: Required: 1. Prepare a selling and administrative expense budget, in good form, for the year 2016. 2. Using the information above and the budgets prepared in P7-2, prepare a budgeted income statement for the year 2016, assuming an income tax rate of 40%.arrow_forwardRoman Inc. has the following totals from its operating budgets: Prepare a budgeted income statement for the year ended December 31, 2016, assuming that income from operations is taxed at a rate of 30%.arrow_forwardSelling and administrative expense budget and budgeted income statement Budgeted selling and administrative expenses for Scottsdale Styles Inc. in P7-4 for the year ended December 31, 2016, were as follows: Required: 1. Prepare a selling and administrative expenses budget, in good form, for the year 2016. 2. Using the information above and the budgets prepared in P7-4, prepare a budgeted income statement for the year 2016, assuming an income tax rate of 30%.arrow_forward
- Nonnas Re-Appliance Store collects 55% of its accounts receivable in the month of sale and 40% in the month after the sale. Given the following sales, how much cash will be collected in February?arrow_forwardMy Aunts Closet Store collects 60% of its accounts receivable in the month of sale and 35% in the month after the sale. Given the following sales, how much cash will be collected in March?arrow_forwardPilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?arrow_forward
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- Crane Company expects to have a cash balance of $60,350 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January $85,350, February $160,350. 2. Payments to suppliers: January $54,350, February $89,350. 3. Wages: January $30,490, February $40,490. Wages are paid in the month they are incurred. 4. Administrative expenses: January $21,490, February $24,490. These costs include depreciation of $1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January $15,490, February $20,490. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize $12,490 in cash. Crane Company has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $34,350. Prepare a cash budget for January and February.arrow_forwardIvanhoe Company expects to have a cash balance of $49,400 on January 1, 2022. These are the relevant monthly budget data for the first two months of 2017. 1.Collections from customers: January $86,000, February $131,700 2.Payments to suppliers: January $45,600, February $50,300 3.Wages: January $34,300, February $40,300. Wages are paid in the month they are incurred. 4.Administrative expenses: January $24,300, February $33,000. These costs include depreciation of $1,300 per month. All other costs are paid as incurred. 5.Selling expenses: January $18,300, February $21,200. These costs are exclusive of depreciation. They are paid as incurred. 6.Sales of short-term investments in January are expected to realize $13,400 in cash. Ivanhoe has a line of credit at a local bank that enables it to borrow up to $40,300. The company wants to maintain a minimum monthly cash balance of $25,500.arrow_forwardBoris detergents expects to have a cash balance of P46,000 on January 1, 2020. These are the relevant monthly budget data for the first two months of 2017. 1. Collections from customers: January P71,000, February P146,000. 2. Payments to suppliers: January P40,000, February P75,000. 3. Wages: January P30,000, February P40,000. Wages are paid in the month they are incurred. 4. Administrative expenses: January P21,000, February P24,000. These costs include depreciation of P1,000 per month. All other costs are paid as incurred. 5. Selling expenses: January P15,000, February P20,000. These costs are exclusive of depreciation. They are paid as incurred. 6. Sales of short-term investments in January are expected to realize P12,000 in cash. The Company has a line of credit at a local bank that enables it to borrow up to P25,000. The company wants to maintain a minimum monthly cash balance of P20,000. Prepare a cash budget for January and February.arrow_forward
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