MANAGERIAL ACCOUNT.(LL)W/ACCESS>CUSTOM<
3rd Edition
ISBN: 9781259972089
Author: Whitecotton
Publisher: MCG CUSTOM
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Chapter 8, Problem 18E
To determine
Concept introduction:
The
Requirement 1
The amount of cash receipt for the month of July and August.
To determine
Concept introduction:
The cash receipt budget is prepared by the company to estimate the budgeted amount of cash sales and cash to be received from the customers during a particular period. The cash payment budget estimates the amount of payment to be made in cash during a particular period.
Requirement 2
Schedule of cash payments for the month of July and August.
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Preparing Cash Receipts and Cash Payments Budgets E33-18
Martin Clothing Company is a retail company that sells hiking and other outdoor gear specially made for the desert heat. It sells to individuals as well as local companies that coordinate adventure Page 1282getaways in the desert for tourists. The following information is available for several months of the current year:
Month
Sales
Purchases
Cash Expenses Paid
May
$120,000
$90,000
$24,000
June
115,000
95,000
31,000
July
160,000
150,000
38,250
August
145,000
80,000
34,700
The majority of Martin’s sales (70 percent) are cash, but a few of the excursion companies purchase on credit. Of the credit sales, 40 percent are collected in the month of sale and 60 percent are collected in the following month. All of Martin’s purchases are on account with 55 percent paid in the month of purchase and 45 percent paid the following month.
Required:
1. Prepare a…
Please explain how we got the "December Cash Disbursements" as "$264300"
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow:
o Sales are budgeted at $290,000 for November, $310,000 for December, and $210,000 for January.
o Collections are expected to be 65% in the month of sale and 35% in the month following the sale.
o The cost of goods sold is 80% of sales.
o The company desires to have an ending merchandise inventory at the end of each month equal to 70% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase.
o Other monthly expenses to be paid in cash are $21,100.
o Monthly depreciation is $21,000.
o Ignore taxes.
Balance Sheet
October 31
Assets
Cash.............................................................................................................
$ 25,000
Accounts…
Janet Wooster owns a retail store that sells new and used sporting equipment. Janet has requested a cash budget for October. After examining the records of the company, you find the following:
Cash balance on October 1 is $1,120.
Actual sales for August and September are as follows:
August
September
Cash sales
$6,000
$4,500
Credit sales
58,000
61,000
Total sales
$64,000
$65,500
Credit sales are collected over a three-month period: 40 percent in the month of sale, 36 percent in the next month, and 22 percent in the second month after the sale. The remaining sales are uncollectible.
Inventory purchases average 70 percent of a month’s total sales. Of those purchases, 45 percent are paid for in the month of purchase. The remaining 55 percent are paid for in the following month.
Salaries and wages total $3,850 per month.
Rent is $3,150 per month.
Taxes to be paid in October are $1,635.
Janet usually withdraws $3,500 each month as…
Chapter 8 Solutions
MANAGERIAL ACCOUNT.(LL)W/ACCESS>CUSTOM<
Ch. 8 - Briefly describe why budgetary planning is...Ch. 8 - What role do budgets play in the planning and...Ch. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - Prob. 5QCh. 8 - Prob. 6QCh. 8 - What are the advantages and disadvantages of...Ch. 8 - What is budgetary slack and why might it be...Ch. 8 - Briefly explain how each of the following helps to...Ch. 8 - What is the master budget, and what are its...
Ch. 8 - Explain why the sales budget is the starting point...Ch. 8 - Prob. 12QCh. 8 - What are tile components of tile operating...Ch. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Prob. 16QCh. 8 - Prob. 17QCh. 8 - Prob. 18QCh. 8 - How does the budgeting process differ for a...Ch. 8 - Prob. 20QCh. 8 - Prob. 1MCCh. 8 - Prob. 2MCCh. 8 - Prob. 3MCCh. 8 - Prob. 4MCCh. 8 - Prob. 5MCCh. 8 - Prob. 6MCCh. 8 - Which of the following budgets is affected by the...Ch. 8 - Prob. 8MCCh. 8 - Prob. 9MCCh. 8 - Prob. 10MCCh. 8 - Describing Advantages of Budgetary Planning...Ch. 8 - Classifying Components of Master Budget Classify...Ch. 8 - Prob. 4MECh. 8 - Prob. 5MECh. 8 - Prob. 6MECh. 8 - Prob. 7MECh. 8 - Preparing Selling and Administrative Expense...Ch. 8 - Prob. 9MECh. 8 - Prob. 10MECh. 8 - Prob. 11MECh. 8 - Prob. 1ECh. 8 - Using Terms to Complete Sentences about Budgets...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Preparing Production, Raw Materials Purchases...Ch. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 1.1GAPCh. 8 - Prob. 1.2GAPCh. 8 - Prob. 1.3GAPCh. 8 - Prob. 1.4GAPCh. 8 - Prob. 1.5GAPCh. 8 - Prob. 1.6GAPCh. 8 - Prob. 1.7GAPCh. 8 - Prob. 2GAPCh. 8 - Prob. 3.1GAPCh. 8 - Prob. 3.2GAPCh. 8 - Prob. 3.3GAPCh. 8 - Prob. 4.1GAPCh. 8 - Prob. 4.2GAPCh. 8 - Preparing Operating Budget Components Wesley Power...Ch. 8 - Prob. 4.4GAPCh. 8 - Prob. 5.1GAPCh. 8 - Prob. 5.2GAPCh. 8 - Preparing Operating Budget Components Refer to the...Ch. 8 - Prob. 6.1GAPCh. 8 - Prob. 6.2GAPCh. 8 - Prob. 6.3GAPCh. 8 - Prob. 6.4GAPCh. 8 - Prob. 6.5GAPCh. 8 - Prob. 1.1GBPCh. 8 - Prob. 1.2GBPCh. 8 - Prob. 1.3GBPCh. 8 - Prob. 1.4GBPCh. 8 - Prob. 1.5GBPCh. 8 - Prob. 1.6GBPCh. 8 - Prob. 1.7GBPCh. 8 - Prob. 2GBPCh. 8 - Prob. 3.1GBPCh. 8 - Prob. 3.2GBPCh. 8 - Prob. 3.3GBPCh. 8 - Prob. 4.1GBPCh. 8 - Prob. 4.2GBPCh. 8 - Prob. 4.3GBPCh. 8 - Prob. 4.4GBPCh. 8 - Prob. 5.1GBPCh. 8 - Prob. 5.2GBPCh. 8 - Prob. 5.3GBPCh. 8 - Prob. 6.1GBPCh. 8 - Prob. 6.2GBPCh. 8 - Prob. 6.3GBPCh. 8 - Prob. 6.4GBPCh. 8 - Prob. 6.5GBP
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