MANAG.ACCOUNTING-CONNECT ACCESS >CUSTOM<
17th Edition
ISBN: 9781266862434
Author: Garrison
Publisher: MCG CUSTOM
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Textbook Question
Chapter 8, Problem 11E
EXERCISE 8-11
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter.
Quarter
| 1 | 2 | 3 | 4 | Year | |
| Cash balance, beginning | $ 6 | $ ? | $ ? | $ ? | $ ? |
| Add collections from customers | ? | ? |
96 |
? |
323 |
| — | — | ||||
| Total cash available | 71 | ? |
? |
? |
? |
| Less disbursements: | |||||
| Purchase of inventory | 35 | 45 | ? | 35 | ? |
| Selling and administrative expenses | 7 | 30 | 30 | ? | 113 |
| Equipment purchases | 8 | 8 | 10 | ? | 36 |
| Dividends | 2 | 2 | 2 | 2 | ? |
| — | — | — | |||
| Total disbursements | ? | 85 |
? |
? |
? |
| Excess (deficiency) of cash available | |||||
| over disbursements | (2) | ? |
11 |
? |
? |
| Financing: | |||||
| Borrowings | ? | 15 | - | — | ? |
| Repayments (including Interest)* | ____-_ | - | (?) | (17) | (?) |
| Total financing | ? | ? | ? | _? | ? |
| Cash balance, ending | ... $ ? | $ ? |
$ ? |
$ ? |
$ ? |
'Interest will total $ 1,000 (or the year.
Required:
Fill in the missing amounts in the above table.
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Students have asked these similar questions
Exercise 7 (Cash Budget Analysis)
A cash budget, by quarters, is given below for a retail company (000 omitted).
The company requires a minimum cash balance of P5,000 to start each quarter.
Quarter
3
4
Year
Cash balance, beginning
P 9
P ?
P ?
P ?
P ?
125
391
Add collections from customers
Total cash available
85
_?
Less disbursements:
Purchase of inventory.
40
58
32
?
Operating expenses
42
54
180
Equipment purchases
10
8.
36
Dividends
Total disbursements
110
Excess (deficiency) of cash available
over disbursements
(3)
30
Financing:
Borrowings
? 20
?
Repayments (including interest)*
(?)
(7)
(?)
1.
Total financing
Cash balance, ending
P ? P ?
P 2
P 2
P 2
* Interest will total P4,000 for the year.
Required:
Fill in the missing amounts in the table above.
8
Exercise 7 (Cash Budget Analysis)
A cash budget, by quarters, is given below for a retail company. (000 omitted).
The company requires a minimum cash balance of P5,000 to start each quarter.
Quarter
1
2
3
4
Year
Cashbalance,beginning..
P9
P ?
P ?
P?
P?
Add collectionsfromcustomers....
?
?
125
?
391
Totalcash available...
85
?
?
Less disbursements:
Purchaseofinventory.
40
58
?
32
Operatingexpenses.
42
54
?
180
Equipmentpurchases..
10
8
8
36
Dividends...
2
2
2
2
?
Totaldisbursement..
110
?
?
?
Excess (deficiency) of cash available
Ordisbursements....
(3)
30
?
?
Financing:
Borrowings..
?
20
Repayments (including interest)*..
(?)
(7)
(?)
Total financing...
?
?
(?)
(?)
Cash balance, ending....
P ?
P ?
P ?
P ?
P?
*Interest will total P4, 000 for the year.
Required:
Fill in the missing amounts in the table above.
QUESTION 4: CASH BUDGET
JL is preparing its cash budget for the next three quarters of the 2019 financial year. The following data have been
extracted from the operating budgets:
Quarter 1
Quarter 2
Quarter 3
R
R
R
Sales revenue
500 000
450 000
480 000
Direct material purchases
138 000
151 200
115 600
Additional information:
a) JL sells 20% of its goods for cash. It is estimated that 70% of all credit sales is received within the quarter in which
the sales are made; and 30% of all credit sales is received in the following quarter. It is estimated that trade
receivables will be R125 000 at the start of Quarter 1. No credit loss is anticipated.
b) All direct material purchases are made on credit. It is estimated that 50% of all direct material purchases are paid in
the quarter of purchase; the remaining 50% is paid in the quarter following the quarter of purchase. It is estimated
that the amount owning for direct material purchases will be R60 000 at the beginning of Quarter 1.
c) JL…
Chapter 8 Solutions
MANAG.ACCOUNTING-CONNECT ACCESS >CUSTOM<
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - 8-4 What is a master budget? Briefly describe its...Ch. 8 - 8—5 Why is the sales forecast the starting point...Ch. 8 - Prob. 6QCh. 8 - 8-7 Why is it a good idea to create a ‘"Budgeting...Ch. 8 - 8-8 What is a self-imposed budget? What are the...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 -
The Excel worksheet form that appears below is to...Ch. 8 - Prob. 2AECh. 8 - Prob. 1F15Ch. 8 - Prob. 2F15Ch. 8 - Prob. 3F15Ch. 8 - Prob. 4F15Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Prob. 11F15Ch. 8 - Prob. 12F15Ch. 8 - Prob. 13F15Ch. 8 - Prob. 14F15Ch. 8 - Prob. 15F15Ch. 8 - EXERCISE 8-1 Schedule of Expected Cash Collections...Ch. 8 - Prob. 2ECh. 8 - EXERCISE 8-3 Direct Materials Budget LOW Three...Ch. 8 - Prob. 4ECh. 8 -
EXERCISE 8-5 Manufacturing Overhead Budget...Ch. 8 -
...Ch. 8 -
The company's beginning cash balance for the...Ch. 8 - EXERCISE 8-8 Budgeted Income Statement LO8-9 Gig...Ch. 8 - EXERCISE 8-9 Budgeted Balance Sheet LO8-10 The...Ch. 8 -
EXERCISE 8-10 Production and Direct Materials...Ch. 8 - EXERCISE 8-11 Cash Budget Analysis LOB-8 A cash...Ch. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 -
EXERCISE 8-14 Sales and Production Budgets LO8-2,...Ch. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - PROBLEM 8-19 Cash Budget: Income Statement:...Ch. 8 -
PROBLEM 8-20 Cash Budget; Income Statement;...Ch. 8 - Prob. 21PCh. 8 -
PROBLEM 8-22 Evaluating a Company’s Budget...Ch. 8 - PROBLEM 8—23 schedule or Expected cash...Ch. 8 - PROBLEM 8-24 Cash Budget with Supporting Schedules...Ch. 8 - PROBLEM B-25 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-26 Behavioral Aspects of Budgeting:...Ch. 8 - (
$
55,000
$ 55, 000
...Ch. 8 -
PROBLEM 8-28 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-29 Completing a Master Budget LO8-2,...Ch. 8 - PROBLEM 8-30 Integration of the Sales, Production,...Ch. 8 - Prob. 31PCh. 8 -
CASE 8-32 Evaluatinga Company’s Budget Procedures...Ch. 8 - CASE 8-33 Master Budget with Supporting Schedules...
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