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A:
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Q: prepare a cash budget
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- the exercise. If you have the following data for the purpose of preparing the cash budget for Al-Iman Company for the year 2022, which has a capital: 1- Expected monthly sales in 2022: June 100000, July 80000, August 60000, September 100,000, October 80,000. 2- The cash sales are expected to be 10%, and the forward sales are to be made on the basis of 50% in the following month For sale, 20% in the following month, 30% in the third month, and there is a possibility of bad debts at a rate of %15 3- The percentage of gross profit is 40%. 4- The company will purchase monthly raw materials based on the sales of the following month, and the value of. will be paid Purchases in the month following the purchase. 5- The fixed expenses amount to 36000 riyals distributed equally over the months of the year. 6- The monthly consumption is estimated at 2000 riyals. 7- Variable payments are 10% of the sales value, 50% of which is paid in the same month, and the rest in Immediately next month. 8- The…USE THE FOLLOWING INFORMATION TO ANSWER QUESTIONS 4 TO 6. Whittle Ltd is preparing a cash budget for the first six months of the coming year, 2024. The company’s financial manager has pulled all the cash sales and income from the past year (2023) and adjusted them for the expected growth in the coming year already and calculated net cash flows for each month, except for collections from credit sales. The system however does not do credit collection estimates, however an ageing report has been generated. Credit sales over the last four months of 2023 were as follows: September October November December R10 000 R12 000 R15 000 R45 000 Credit sales for the first 6 months of 2024 were estimated as follows: January February March April May June R5 000 R10 000 R12 000 R14 000 R18 000 R25 000 The ageing analysis indicates that on credit sales, payments are usually made as follows for any given month’s sales: 1 month 2 months 3…If you have the following data for the purpose of preparing the cash budget for Al-Iman Company for the year 2022, which has a capital:- 1) Expected monthly sales in 2022: June 100000, July 80000, August 60000, September 100000, October 80000. 2) The expected cash sales are 10%, and the forward sales are obtained on the basis of 50% in the month following the sale, 20% in the month following the sale, 30% in the third month, and a bad debt probability of 15% 3) The Gross Profit Ratio is 40% 4) The company will purchase monthly raw materials on the basis of the sales of the following month, and the purchase price will be paid in the month following the purchase. 5) The fixed expenses amount to 36000 riyals distributed equally over the months of the year 6) The monthly consumption is estimated at 2000 riyals 7) Variable payments amount to 10% of the sales value, 50% of which is paid in the same month, and the rest in the immediately following month. 8) The company will purchase a new…
- Mooney Equipment is putting together its cash budget for the following year and has forecasted expected cash collections over the next five quarters (one year plus the first quarter of the next year). The cash collection estimates are based on sales projections and expected collection of receivables. The sales and cash collection estimates are shown in the following table (in millions of dollars): Q1 Q2 Q3 Q4 Q5 Sales $1,100 $1,400 $1,450 $1,250 $1,500 Total cash collections $1,100 $1,150 $1,200 $1,200 You also have the following information about Mooney Equipment: • In any given period, Mooney’s purchases from suppliers generally account for 72% of the expected sales in the next period, and wages, supplies, and taxes are expected to be 15% of next period’s sales. • In the third quarter, Mooney expects to expand one of its plants, which will require an additional $1,072 million investment. • Every quarter, Mooney pays $60 million in interest and…Use the information below to answer question 1 to 22. The financial controller of BOE Ltd. is gathering data to prepare a cash budget for the second quarter of 2018. The following information is available. a) Sales for the first six months of the year are as follows: January February March 23,000 30,000 50,000 57,000 60,000 56,000 April Мay June a) 40% of all sales are cash sales. b) Of credit sales, 50% are collected in the month of sales and the remaining 50% collected the following month. c) The cost of raw materials equals 35% of each month's sales. 50% of raw materials are paid for in the month of purchase. The remaining 50% are paid in the following month. d) Wages total ¢5,500 per month and are paid for in the month incurred. e) Operating expenses per month totalled ¢16,800 of which ¢2,500 is depreciation and ¢300 is expiration of prepaid insurance premium (the annual premium of ¢3,600 paid in Jan 1). f) Dividend of ¢7,000 declared in March 31 will be paid on April 20. g) Old…Use the information provided below to prepare the Cash Budget for January and February 2023:INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 - R576 000 January 2023 - R540 000 February 2023 - R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 - R1 000 000 January 2023 - R800 000 February 2023 - R920 0006. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150 000.…
- The management of Rain co which was manufacturing rain coats was preparing a cash budget for the month of June 2021. Opening cash balance=P20,000 Cash anticipated for collection=P75,000 Cash anticipated for disbursement=P100,250 To maintain P5,000 as cash balance what amount needs to be borrowed for June month 2021.If it can be done in excel, please, I would appreciate it very much (and show the formulas).In preparing the cash budgeting projected balance method, it is necessary to calculate the amount of the inventory balance. The following information is available for the current fiscal year: Inventory balance, $200,000.00, it is known that the inventory turnover is every 60 days. The Cost of Sales is forecasted to increase 15% for the next fiscal year. What is the budgeted inventory balanceCan you please help with the last part of the question. Odane Cranston, the management accountant at BG Merchandising & More, is in the process of planning the company’s cash needs for the last quarter of 2020. Extracts from the sales and purchases budgets are as follows:Month2020CashSalesSalesOn AccountPurchasesOnAccountAugustSeptemberOctoberNovemberDecember$85,000$75,500$69,870$80,030$63,010$520,000$640,000$760,000$680,000$850,000$420,000$400,000$520,000$440,000$540,000i) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90:60% in the month of sale 25% in the first month following the sale15% in the second month following the saleii) Accounts payable are settled as follows, in accordance with the credit terms 2/30, n60:80% in the month in which the inventory is purchased 20% in the following monthiii) In the month of November, the management of BG…
- Use the information provided below to prepare the following for January and February 2023: 4.2)Cash Budget INFORMATION The following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows:December 2022 January 2023 February 2023R576 000 R540 000 R648 0003. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows:December 2022 January 2023 February 2023R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the purchase.7. The monthly salaries amount to R150…The accountant of Turn Key (Pty) Ltd instructs you to prepare a monthly cash budget for August. You are presented with the following budget information for July and August 2020. July August Sales. R590 000. R650 000 Manufacturing costs. R300 000. R340 000 Selling and administrative expenses R150 000. R170 000 Capital expenditures R120 000 (August) 1. The company expects to sell 10% of its merchandise for cash. 2. Credit sales will be collected as follows: 60% are expected to be collected in the month following the month of sale, and the remainder, in the second month following the month of sale. 3. On August 1 Cash balance was R55 000. 4. Accounts receivable as a result June credit sales was R442 000. 5. It is expected that R1 500 in dividends will be received in August. 6. All selling and administrative expenses are paid in cash in the period in which they are…Kupa Ltd. has approached their local banker for an overdraft facility in 2021. The banker has asked to provide a cash budget for the first six months of 2021. The company has furnished you with the following information. Oct 2020 Nov 2020 Dec. 2020 Jan. 2021 Feb. 2021 Mar. 2021 Apr. 2021 May 2021 June 2021 July 2021 Aug. 2021 Sep 2021 Sales (Sh.‘000’) 190 170 200 180 220 240 210 160 180 220 240 220 Sales are made 40% cash. Of credit sales, 30% is collected in the month of sale, 40% one month after sale and 25% two months from sales Gross profit margin is 25%. Goods purchased in a month are sold two months after the month of purchase. Purchases are paid 30% one the month of purchase and the remainder two months thereafter. Cash Overheads average 10% of the monthly sales. Cash Operating expenses are 15% of the monthly sales. New equipment costing Sh. 24,000 will, be purchased for cash in April. Annual depreciation on this…