Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts $ 527,000 411,000 464,000 Cash payments $ 473,800 357,800 521,000 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should

Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February March Cash Receipts $ 527,000 411,000 464,000 Cash payments $ 473,800 357,800 521,000 Kayak requires a minimum cash balance of $30,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $30,000 is used to repay loans at month-end. The company has a cash balance of $30,000 and a loan balance of $60,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 18E

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Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts cash payments $ 528,000 410,000 January February March $469,300 351,300 533,000 Kayak requires a minimum cash balance of $40,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $40,000 is used to repay loans at month-end. The company has a cash balance of $40,000 and a loan balance of $80,000 at January 1 Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.) Answer is not complete. KAYAK COMPANY Cash Budget January February March
Cash budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: July August $160,000 $185,000 $200,000 66,000 82,000 105,000 51,000 120,000 40,000 46,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent $12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Sales Manufacturing costs Selling and administrative expenses Capital expenditures June Current assets as of June 1 include cash of $42,000,…
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter $ 440,000 $ 307,000 $ 290,000 $ 337,000 $ 320,000 $ 297,000 $ 340,000 $ 317,000 The company's beginning cash balance for the upcoming fiscal year will be $42,00O. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for the upcoming fiscal year. (Cash deficiency, repayments and interest should be indicated by a minus sign.)
KAYAK COMPANYCash Budget JanuaryFebruaryMarchBeginning cash balance$30,000 $30,000 Add: Cash receipts525,000 400,000 450,000 Total cash available555,000 430,000 Less: Cash payments for All items excluding interest Interest on loan Total cash payments0 0 0 Preliminary cash balance Additional loan (loan repayment) Ending cash balance Loan balanceLoan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month$0 $0 $0
4B. Draw up a cashbudget for Amal showing the balance at the end of each month, from the following information for the six months from July to December 2020: (a) Opening cash (including bank) balance on 1 July 2020 OMR 8000 (b) Production in units: Jan Feb March April May June July Aug Sep Oct Nov Dec 600 720 810 900 960 1,050 1,110 1,140 1,020 930 780 750 (c) Raw materials used in production cost OMR 30 per unit. Of this, 60 per cent is paid in the month of production and remaining balance in the month after production (d) Direct labour costs of OMR 15 per unit are payable in the month of production. (e) Variable expenses are OMR 5 per unit, payable 40 per cent in the same month as production and remaining balance in the month after production (f) Sales at OMR 70 per unit: Jan Feb March April May June July Aug Sep Oct Nov Dec 500 600 700 960 870 1,000 900 1,050 1,200 950 850 800 Debtors to pay…
Beginning cash balance Add: Cash receipts Total cash available Less: Cash payments for Interest on loan All items excluding interest Total cash payments Preliminary cash balance Loan activity Additional loan (loan repayment) Ending cash balance Loan balance - Beginning of month Additional loan (loan repayment) Loan balance, end of month Answer is not complete. KAYAK COMPANY Cash Budget $ January February 30,000 $ 30,000 $ 523,000 401,000 553,000 431,000 $ 600 463,200 463,800 89,200 (59,200) $ Loan balance $ 30,000 $ 60,000 $ 8 341,200 341,208 89,792 (59,200) (59,792) ► 800 (59,792) 800 $ 58,992 30,000 $ $ March 30,000 X 471,000 501,000 0 533,000 533,000 31,700 X 1,700 X 30,000 58,992 1,700
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow: July $64,000 August $80,000 September $ 48,000 Budgeted sales Budgeted cash payments for Direct materials 16,160 4,040 20,200 13,440 3,360 16,800 13,760 3,440 17,200 Direct labor Factory overhead Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,000 in accounts receivable; and a $5,000 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month- end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office…
Need to used in formulas Expected cash collections: March cash collections March collections on accounts: January sales February sales March sales Total cash collections Payments to suppliers: Accounts payable for inventory purchase, beginning balance March purchase Total cash payments S & P Enterprises Cash Budget For the Month of March Cash balance, March 1 Add cash receipts: Collections from customers Total cash available before current financing Less disbursement: Payments to suppliers Selling and administrative expenses Equipment purchases Dividends paid Total disbursement Excess (deficiency) of cash available over disbursement Financing: Borrowings Repayments Interest Total financing Cash balancing, March 31
Given: Cash Receipts for September =PHP 305,450; October = PHP 85,405; and November =PHP 375,195. Cash Disbursements for September =PHP 215,485; October = PHP 250,265; and November = PHP 310,525. Beginning Cash Balance (September) = PHP 35,975. Minimum Monthly Cash Balance Needed = PHP 34,425. The ending cash for September is PHP O 160,365 O 125,940 O 89,965 O 91,515
* CengageNOWv2 | Online teachin x .com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress%3false Cash Budget The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July Sales $146,000 $185,000 $248,000 Manufacturing costs 61,000 80,000 89,000 Selling and administrative expenses 42,000 50,000 55,000 Capital expenditures 60,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $7,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 85% are expected to be…
Data Year 2 Quarter Year 3 Quarter 1 2 3 4 1 2 Budgeted unit sales 40,000 60,000 100,000 50,000 70,000 80,000 • Selling price per unit • Accounts receivable, beginning balance • Sales collected in the quarter sales are made • Sales collected in the quarter after sales are made • Desired ending finished goods inventory is • Finished goods inventory, beginning • Raw materials required to produce one unit • Desired ending inventory of raw materials is • Raw materials inventory, beginning • Raw material costs • Raw materials purchases are paid and • Accounts payable for raw materials, beginning balance $12 per unit $65,000 75% 25% 30% of the budgeted unit sales of the next quarter 12,000 units 5 pounds 10% of the next quarter's production needs 23,000 pounds $0.80 per pound 60% in the quarter the purchases are made 40% in the quarter following purchase $81,500 •Direct labor cost per hour •Direct labor hour per unit $15 per hour 0.2 hour per unit $2 per hour $60,000 •Variable MOH rate…
Thornton Medical Clinic has budgeted the following cash flows. Cash receipts Cash payments For inventory purchases For S&A expenses January $ 116,000 98,000 39,000 February $ 122,000 80,000 40,000 March $ 142,000 93,000 35,000 Thornton Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash balance of $9,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 2 percent per month. Repayments may be made in any amount available. Thornton pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this year's quarterly results. Required Prepare a cash budget Note: Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.