Problem 14-20A (Static) Preparing a cash budget LO 14-5 Fayette Medical Clinic has budgeted the following cash flows. January $240, 000 February $232,000 $272,000 March Cash receipts Cash payments For inventory purchases For SSA expenses 220, 000 62,000 164,000 64,000 190,000 54,000 Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $2,000, and repaid on the last day of each month; the interest rate is 1 percent per month. Repayments may be made in any amount available. Fayette pays its vendors on the last day of the month also. The company had a monthly $80,000 beginning balance in its line of credit liability account from last year's quarterly results. Required Prepare a cash budget. (Any repayments should be indicated with a minus sign. Round intermediate and final answers to the nearest whole dollar amounts.)

Problem 14-20A (Static) Preparing a cash budget LO 14-5 Fayette Medical Clinic has budgeted the following cash flows. January $240, 000 February $232,000 $272,000 March Cash receipts Cash payments For inventory purchases For SSA expenses 220, 000 62,000 164,000 64,000 190,000 54,000 Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $10,000. Funds are assumed to be borrowed, in increments of $2,000, and repaid on the last day of each month; the interest rate is 1 percent per month. Repayments may be made in any amount available. Fayette pays its vendors on the last day of the month also. The company had a monthly $80,000 beginning balance in its line of credit liability account from last year's quarterly results. Required Prepare a cash budget. (Any repayments should be indicated with a minus sign. Round intermediate and final answers to the nearest whole dollar amounts.)

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Description: RequiredPrepare a cash budget. (Any repayments should be indicated with a minus sign. Round intermediate and final answers to thenearest whole dollar amounts.)Cash BudgetJanuaryFebruaryMarchSection 1: Cash receipts%24Total cash availableSection 2: C

Financial & Managerial Accounting

14th Edition

ISBN:9781337119207

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter21: Budgeting

Section: Chapter Questions

Problem 9DQ: A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year...

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A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
Problem 5 Prepare a cash budget by month for the month quarter ending September 30, 2009, from the following data obtained from the Peninsula Co. Support your solution with schedules of estimated receipts & payments. August P 16,000 150,000 120,000 18,000 2,000 July P 12,000 110.000 90,000 Operating Expenses 15,000 September P 18,000 120,000 110,000 16,000 Cash sales Credit sales Purchases Interest expense Credit are collected 50% in the month of sales. 40% in the month following, 8% in the second month following and 2% uncollectible. Credit sales for May and June are expected to be P100,000 and P90,000 respectively. Purchases of merchandise, all on account are paid 60% in the month of purchase and 40% in the month fallowing. Purchase for June are estimated at 80,000 are paid in the month incurred. Cash balance on June 30, 2009 is P27,000.
11 Skipped Campbell Medical Clinic has budgeted the following cash flows. January February March Cash receipts $104,000 $110,000 $130,000 Cash payments For inventory purchases For S&A expenses 92,000 74,000 33,000 34,000 Campbell Medical had a cash balance of $10,000 on January 1. The company desires to maintain a cash cushion 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. Campbell 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. (Round intermediate and final answers to the nearest whole dollar amounts. Any repayments/shortage should be indicated with a minus sign.) January February Cash Budget Section 1: Cash Receipts 87,000 29,000 Total cash available Section 2: Cash…
Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 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 January February March $ 526,000 411,000 460,000 $ 471,700 356,700 525,000 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 be indicated with minus sign.) Beginning cash balance Total cash…
Exercise 9-26 Cash Budgeting (LO 9-3, 9-5) The following information is from Tejas WindowTint's financial records. Month Sales Purchases April May June July $72,000 66,000 60,000 78,000 $42,000 48,000 36,000 54,000 Collections from customers are normally 70 percent in the month of sale, 20 percent in the month following the sale, and 9 percent in the second month following the sale. The balance is expected to be uncollectible. All purchases are on account. Management takes full advantage of the 2 percent discount allowed on purchases paid for by the tenth of the following month. Purchases for August are budgeted at $60,000, and sales for August are forecasted at $66,000. Cash disbursements for expenses are expected to be $14,400 for the month of August. The company's cash balance on August 1 was $22,000. Required: 1. Prepare the expected cash collections during August. 2. Prepare the expected cash disbursements during August. 3. Calculate the expected cash balance on August 31. Answer…
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Exercise 20-17 (Algo) Preparation of cash budgets (for three periods) LO P2 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 Cash payments $527,000 407,500 472,000 $473,800 354,300 532,000 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.). KAYAK COMPANY Beginning cash…
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b. a. Prepare a schedule of cash payments for Fein Company for the month of August. OBJECTIVE 3 C. Exercise 9-45 Cash Budget The owner of a building supply company has requested a cash budget for June. After examining the records of the company, you find the following: Cash balance on June 1 is R7,360. b. Actual sales for April and May are as follows: d. F. a. April May Cash sales R180,000 Credit sales to 00 R530,000 Total sales R389,000 c. Credit sales are collected over a three-month period: R 40% in the month of sale, 30% in the second month, and 20% in the third month. The sales collected in the third month are subject to a 2% late fee, which is paid by those customers in addition to what they owe. The remaining sales are uncollectible. d. Inventory purchases average 64% of a month's total B sales. Of those purchases, 20% are paid for in the month of purchase. The remaining 80% are paid for in the following month. Salaries and wages total R117,500 per month, including a R45,000…
K The actul normation pertens to the third quarter As part of the budgeting process the Duck Decoy Department of Paraith incorporated had deveped the town st Oy the process of preparing the fiebe budget and understanding the nuts Sales volume in ont) Se Fixed costs Operating prot The budgo will report CA $225750 OB $116.700 Actual Results Flexible Budget Static Budget 15,000 12.000 1241,000 S 140.000 OD $37.0000 5,000 37,000 $50,000 $234,000 183.000 51.000 30,000 $21.000 1 for variable costs (Round any intermediate calculations to the nearend cont and round your frial to the need SHO
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