CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
6th Edition
ISBN: 9781264445356
Author: Noreen
Publisher: MCG
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Chapter 8, Problem 8.25P
a.
To determine
Introduction:
Cash collection schedule:
A cash collection schedule refers to the amount which is receivable for the business enterprise in different time periods.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 1
To prepare: A schedule of expected cash collections for April, May, and June, and the quarter in total.
b.
To determine
Introduction:
Merchandise purchases budget:
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 2
To prepare: (a) A merchandise purchases budget for April, May, and June and (b) a schedule of expected cash disbursements for merchandise purchases for April, May, June, and Quarters in total.
c.
To determine
Introduction:
A cash budget refers to the forecasted cash flow of a business enterprise in a particular time period.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 3
To prepare: A cash budget for April, May, June, and Quarters in total.
d.
To determine
Introduction:
Cash budget:
A cash budget refers to the forecasted cash flow of a business enterprise in a particular time period.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 4
To prepare: A brief memorandum for the company’s president that shows how his revised assumptions affect the cash budget.
Expert Solution & Answer
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Students have asked these similar questions
QUESTION 1
Which of the following statements is false about cash budgets?
O Cash receipts are calculated by adding up all the cash inflows in a given month
O When calculating the cash budget the firm must consider many aspects such as, cash receipts, cash expenses, minimum desired cash balance, and
previous loans.
O Cash receipts include sales, investment income and interest expenses.
All of the above are true
QUESTION 2
Based on the data below calculate the company's combined cost?
Annual requirements = 7500 units
Ordering cost = BD 12
Holding cost BD 0.5
O125
300
45000
150
0000
Which one of the following budget is not affected when credit period to customers is changed from 30 days to 90 days to achieve 30% inrease in sales?
A. Capital budget
B. Production Budget
C. Cash Budgets
D. Sales Budge
A cash budget, by quarters, is given below for a retail company. (000 omitted) company requires a minimum cash balance of at least Br 5,000to start each quarter.
Quarter
1
Quarter
2
Quarter
3
Quarter
4
Year
Cash balance, beginning
6
?
?
?
?
Add collections from customers
?
?
96
?
323
Total cash available
71
?
?
?
?
Less disbursement:
Purchase inventory
35
45
?
35
?
Operating expense
?
30
30
?
113
Equipment purchase
8
8
10
?
36
Dividends
2
2
2
2
?
Total disbursement
?
85
?
?
?
Excess (deficiency) of each cash
(2)
?
11
?
?
Financing:
Borrowing
?
15
-
-
?
Repayments (including interest)
-
-
?
(17)
?
Total financing
?
?
?
?
?
Cash balance, ending
?
?
?
?
?
Chapter 8 Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
Ch. 8 - Prob. 8.1QCh. 8 - Prob. 8.2QCh. 8 - Prob. 8.3QCh. 8 - Prob. 8.4QCh. 8 - Prob. 8.5QCh. 8 - Prob. 8.6QCh. 8 - Prob. 8.7QCh. 8 - Prob. 8.8QCh. 8 - Prob. 8.9QCh. 8 - Prob. 8.10Q
Ch. 8 - Prob. 8.1AECh. 8 - Morganton Company makes one product, and it...Ch. 8 - Prob. 8.1ECh. 8 - Prob. 8.2ECh. 8 - Prob. 8.3ECh. 8 - Prob. 8.4ECh. 8 - Prob. 8.5ECh. 8 - Prob. 8.6ECh. 8 - Prob. 8.7ECh. 8 - Prob. 8.8ECh. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19PCh. 8 - Prob. 8.20PCh. 8 - Prob. 8.21PCh. 8 - Prob. 8.22PCh. 8 - Prob. 8.23PCh. 8 - Prob. 8.24PCh. 8 - Prob. 8.25PCh. 8 - Prob. 8.26PCh. 8 - Prob. 8.27PCh. 8 - Prob. 8.28PCh. 8 - Prob. 8.29PCh. 8 - Prob. 8.30PCh. 8 - Prob. 8.31PCh. 8 - Prob. 8.32CCh. 8 - Prob. 8.33C
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