FIN571 Wk3 Discussion Budget Techniques for the Financial Market CH

REQUIRED Use the information provided below to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATION The following information was provided by BN Traders: 1. The bank balance on 28 February 2024 is expected to be R100 000 (unfavourable). The sales figures for the first four months of 2024 are expected to be as follows: 2 January March R1 500 000 R1 000 000 3. 4. 4.1 4.2 5. 6. 7. 8. 9. February R1 100 000 Cash sales usually make up 30% of the total sales. The balance of the sales is on credit. (Separate entries are required for cash sales and collections from credit sales.) Credit sales are normally collected as follows: 30% in the month of the sale, and these debtors are entitled to a 3% discount 65% in the month after the sale The rest is usually written off as bad debts. Purchases from February to April 2024 are expected to be as follows: February March R320 000 R350 000 Cash purchases Credit purchases April R1 200 000 R360 000…

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Management Accounting Course Project – Part 1, B Group   The Terranova Company is preparing information to complete its master budget for the quarter ending December 31, 2020.  The company intends to make unit sales in the related months as follows:   September​  5,000 October ​  9,750 November​ 11,700 December​ 14,625   Units are to be sold for $10 each.  Sales are 60% for cash and 40% on credit.  Credit sales are collected in the month following the sale.   *Required:   1) Prepare a sales budget for Terranova for the quarter ending December 31, 2020.  Show activity by month and in total.  (Hint:  a quarter = 3 months.) 2) Complete a schedule of expected cash collections for the quarter ending December 31, 2020.  Show activity by month and in total.

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QUESTION 4 REQUIRED Use the information provided by empire Traders to prepare the following for March and April 2024: 4.1 Debtors Collection schedule 4.2 Cash Budget INFORMATION The following information was provided by Empire Traders: 1. Empire Traders expects to have a favourable bank balance of R60 000 on 28 february 2024. 2. Budgeted sales figures for 2024 are as follows: January February March April Cash Sales R320 000 R370 000 R310 000 R 250 000 Credit Sales R370 000 R390 000 R320 000 R300 000 3. Thirty percent (30%) of the cash sales is to informal traders who are entitled to a discount of 10%. Collections from debtors are usually as follows: 80% is collected in the month after sale 20% is collected two months after the sale 4. Purchases of inventory are expected to be as follows: January February March April Total Purchases R410 000 R460 000 R400 000 R380 000 5. Sixty percent (60) of then purchases is for cash to take advantage of a discount of 15%. The balance is purchased on…

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QUESTION 3 REQUIRED Use the information provided below to prepare the following for Mustang Enterprises for January and February 2024. 3.1 Debtors Collection Schedule 3.2 Cash Budget. INFORMATION The following information was supplied by Mustang Enterprises: 1. Mustang Enterprises expects to have an unfavourable bank balance of R40 000 on 31 December 2023.   2. The monthly sales were projected as follows: 2023 Units November 44 000 December 53 000 2024 Units January 47 000 February 31 000 3. The selling price is R20 per unit (excluding any discounts). All the goods produced each month are expected to be sold in the same month. Sixty percent (60%) of the sales is expected to be on credit and the balance is for cash. Thirty percent (30%) of the cash sales is subject to a discount of 10%. 4. Credit sales are usually collected as follows: 20% in the month of sale, and these debtors receive a 5% discount. 75% in the month after the sale, and the rest is usually written off as bad debts. 5.…

Completing a comprehensive budgeting problem—merchandising Company Alliance Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2018 and a balance sheet at April 30, 2018. The March 31, 2018, balance sheet follows: As Alliance Printing Supply’s controller, you have assembled the following additional information: April dividends of $7,000 were declared and paid. April capital expenditures of $16,300 budgeted for cash purchase of equipment. April depreciation expense, $1,000. Cost of goods sold, 40% of sales. Desired ending inventory for April is $22,400. April selling and administrative expenses include salaries of $37,000, 30% of which will be paid in cash and the remainder paid next month. Additional April selling and administrative expenses also include miscellaneous expenses of 10% of sales, all paid in April. April budgeted sales, $89,000, 80% collected in April and 20°/0 in May. April cash payments of March 31…

Profit Planning and What-If Analysis As a newly hired management accountant, you have beenasked to prepare a profit plan for the company for which you work. As part of this task, you’ve beenasked to do some what-if analyses. Following is the budgeted information regarding the coming year:[LO 10-5]Number of active policyholders beginning of month 1 100,000Average monthly premium per policy $100.00Monthly midterm cancellation rate 0.50%Policy renewal rate 85.00%Selling price per unit $ 100.00Variable cost per unit 70.00Fixed costs (per year) 1,200,000Required1. What is the breakeven volume, in units and dollars, for the coming year?2. Assume that the goal of the company is to earn a pretax (operating) profit of $300,000 for thecoming year. How many units would the company have to sell to achieve this goal?3. Assume that of the $70 variable cost per unit the labor-cost component is $25. Current negotiations with the employees of the company indicate some uncertainty regarding the labor…

Completing a comprehensive budgeting problem—merchandising company Belton Printing Company of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for the month of April 2018 and a balance sheet at April 30, 2018. The March 31, 2018a balance sheet follows: As Belton Printings controller, you have assembled the following additional information: April dividends of $7,000 were declared and paid. April capital expenditures of $17,000 budgeted for cash purchase of equipment. April depreciation expense, $800. Cost of goods sold, 55% of sales. Desired ending inventory For April is $24,800. April selling and administrative expenses includes salaries of $29,000, 20% of which Will be paid in cash and the remainder paid next month. Additional April selling and administrative expenses also include miscellaneous expenses of 10% of sales, all paid in April. April budgeted sales, $86,000, 80% collected in April and 20% in May. April cash payments of March 31…

QUESTION 2 REQUIRED Prepare the Cash Budget for January, February and March 2021. (Provide separate monetary columns for each month.) INFORMATION Ricoh Limited is planning the business activities of Project Haz for the first three months of 2021. Some of the items in the Statement of Financial Position as at 31 December 2020 are expected to be as fallows: Current assets Debtors/Accounts receivable R 600 000 20 000 Bank Current liabilities Creditors (for material purchases) 100 000 Additional information The following forecasts have been made by Ricoh Limited for the first three months of 2021: 1. Direct materials The costs of production include the following: R26 per unit Direct labour R22 per unit 2. The sales manager anticipates the following sales volumes at a constant price of R160 per unit: January February March 2 300 units 2 500 units 3 400 units All the sales are on credit and debtors pay their accounts in the month after the sale. 3. The purchases manager expects to purchase…

Question 1Ming Chung Limited is applying for additional bank overdraft finance to enable thecompany to make the plant and machinery purchase described below. The directorshave has asked you to draw up a cash budget for the 6 months to 30 June 2020 toprove to the bank that that overdraft finance will be repaid by 30 June 2020. Thecompany provides you with the following financial information:Month Sales Purchases Wages Overheads£ £ £ £November 2019 (actual) 45,800 18,400 9,600 6,000December 2019 (actual) 34,600 13,900 9,800 14,000January 2020 (budgeted) 42,200 16,800 10,500 7,000February 2020 (budgeted) 44,000 17,600 11,200 7,500March 2020 (budgeted) 54,000 21,600 13,500 18,800April 2020 (budgeted) 57,600 23,000 14,400 8,000May 2020 (budgeted) 61,800 24,700 15,300 9,200June 2020 (budgeted) 63,700 25,500 15,900 9,800Notes♦ The bank balance at 1 January 2020 is expected to be £25,000.♦ 60% of sales are for cash with the other 40% being on credit. 70% of creditsales pay in the month…

problem p4-12 (Principles of Managerial Finance Zutter Smart 15th Edition)

#15 is the question

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BUDGETING A BUSINESS SCENARIO - STEP 5 FIXED COST BUDGET Fixed costs budget will be different for every organization and will depend upon what sort of resources are consumed by each entity.. Budg expects her fixed costs and her capital expenditure for the next three months to be as follows: ● ● ● Rent on the new workshop of $3,000 will be paid in January to cover the months of January, February and March. New machinery and tools will cost $15,000 and will be delivered and paid for in January. These new non-current assets will have an expected useful life of five years and should be depreciated on the straight line basis. She anticipates that she will receive and pay an electricity bill in March covering the period 1 January to 15 March. She expects that this bill will be for around $1,500. Budg estimates that the new workshop will use a further $300 of electricity between 16th and 31st March. Each month of operation should be allocated an equal amount of electricity cost. An invoice…