Adzac Corporation has the following budget data for the year 2022. Budget: Dec. 31, 2021 Ending Inventory Dec. 31, 2022 Ending Inventory Inventory Purchases Depreciation Expense Budget Gen. Administrative Expense Budget Selling Expense Budget Rent Expense Budget Salaries Expense Budget Insurance Expense Budget D Question 2 How much is the operating expenses budget? K $ 78,000 64,500 825,000 84,000 92,550 125,000 150,000 218,000 53,450
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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- Please draft a budgeted receipt schedule from debtors for the period of 1 January 2023 to 30 June 2023. Month of 2023 Budgeted total sales: 1. January 140 000 2. February 132 000 3. March 128 000 4. April 115 000 5. May 120 000 6. June 150 000 Additional information: Total sales for September 2022, October 2022, November 2022 and December 2022 were R 120 000, R128 000 and R134 000 and R140 000 respectively. The goods sold on credit were 60% of actual sales. Customers will pay their debt as follows: . ⚫ 0% in the first month after the month of sale • 60% in the second month after the month of sale • 30% in the third month after the month of sale 10% in the fourth month after the month of saleSplish Company has accumulated the following budget data for the year 2022: 1. 2. 3. 4. 5. 6. 19 Sales: 27,900 units; unit selling price $82 Cost of one unit of finished goods: direct materials, 2 kg at $5 per kilogram; direct labour, 3 hours at $13 per hour; and manufacturing overhead, $6 per direct labour hour Inventories (raw materials only): beginning, 9,900 kg; ending, 14,100 kg Raw materials cost: $5 per kilogram Selling and administrative expenses: $201,000 Income taxes: 30% of income before income taxesPrepare a Budgeted Statement of Financial Position as at 31 December 2022 using the below information: Statement of comprehensive income for the year ended 31 December 2021Sales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable selling and administrative expenses (1 500 000)Fixed selling and administrative expenses (500 000)Net profit 2 250 000 Statement of financial position as at 31 December 2021ASSETSNon-current assets 800 000Property, plant and equipment 800 000Current assets 3 400 000Inventories 1 600 000Accounts receivable 600 000Cash 1 200 000 4 200…
- 7.3 Shown below are the totals from 2018 period budgets. Revenue budget Materials usage from production budget Labor cost budget Manufacturing overhead budget General and administrative budget Capital expenditure budget P100,000 15,000 20,000 20,000 30,000 20,000 32 How Work-in-Progress Inventories: Beginning of 2018 End of 2018 ndilet b rsM x) 1E valM 10,000 lsa 5,000 PLS Finished Goods Iventory: Beginning of 2018 End of 2018 Pla 15,000 10,000 Tax Rate 40% hen dees20 oldibsllonU Instructions: nongt od Prepare a forecasted Income Statement for the year. bas sldigilgonYou are provided with the following budget information for Trent Company, effective as of its April 30, 2021 year-end. Accounts payable 834 Accounts receivable 810 Buildings, net of accumulated depreciation 3,537 Cash 770 Common stock 900 Cost of goods sold 2,500 Current portion of long-term debt 450 Depreciation expense Dividends paid during the year 335 475 Equipment, net of accumulated depreciation 1,220 Income tax expense 265 Income taxes payable 265 Interest expense 400 Inventory 967 Land 1,600 Long-term debt Prepaid expenses 3,500 12 Retained earnings, beginning 1,600 Service revenue 9,600 Selling expenses 310 Debt investments 1,200 Salaries and wages expense 700 Salaries and wages payable 222 Instructions: Prepare an income statement for Trent Company for the year ended April 30, 2022. What is budgeted net income?Light Up Corporation manufactures and sells two types of decorative lamps, Knox and Ayer. The following data are available for the year 2020. (Click the icon to view the additional information.) All sales are made on account with 70% of sales made in a quarter collected in the same quarter and 30% collected in the following quarter. Calculate the cash collected from receivables in each of the 4 quarters of 2020. (If an input field is not used in the table, leave the input field empty; do not enter a zero.) Schedule of Cash Collections Accounts receivable balance on 1-1-2020 (Fourth-quarter sales from prior year) From first-quarter 2020 sales From second-quarter 2020 sales From third-quarter 2020 sales From fourth-quarter 2020 sales Total collections 1 2 Quarters 3 4
- Q1. Below are the budgeted revenue and expenses for a restaurant for the year 2022. RM (*000) 71,250 Revenue Sales RM ('000) 28,500 4,200 17,100 Expenses Cost of supplies Salaries Wages Depreciation Repair and Maintenance Advertisement Laundry Interest on Loan Miscellaneous expenses Utilities 900 3,000 1,500 200 2,200 2,300 650 Below are the additional information given to you for further analysis: The expected pattern of sales for the year 2022 are as follows and it is the company policy to analyse based on quarters. Percentage of sales 24 Quarter 1 2 20 3 24 4 32 75% of the sales are on a cash basis and the balance will be received in the next quarter. The costs of supplies vary directly with sales and a constant stock value of supplies are kept. 20% of purchases of the food and drinks are for cash and the balance are paid during next quarter. 80% of the repairs and maintenance item is for a major redecoration to be paid in the third quarter. Wages, which are variable with sales, are…Statement of comprehensive income for the year ended 31 December 2021Sales 10 000 000Cost of sales (5 750 000)Gross profit 4 250 000Variable selling and administrative expenses (1 500 000)Fixed selling and administrative expenses (500 000)Net profit 2 250 000 Additional information:1. The sales budget for 2022 is as follows:First quarter R2 625 000Second quarter R2 750 000Third quarter R2 875 000Fourth quarter R2 750 0002. 90% of the sales is collected in the quarter of the sale and 10% in the quarter following the sale.3. The gross margin ratio for 2022 is expected to be the same as for 2021.4. Inventory is purchased in the quarter of the expected sale. Eighty (80%) of inventory purchases is paid for in thequarter of purchase and twenty percent (20%) is paid for in the quarter following the purchase.5. The inventories balance at the end of each quarter is expected to be the same as the end of the last quarter of2021 viz. R1 600 000.6. Variable selling and administrative expenses will…The members of Networx Ltd decide to prepare a Cash Budget for November and December 2018. The following information is available:Actual BudgetedAugust RSeptember ROctober RNovember RDecember RSales:CashCredit194 500287 300235 700350 000275 000410 000250 500400 400368 000697 000Purchases 510 000 490 000 495 000 520 000 680 000Salaries & Wages 72 600 72 600 72 600 72 600 72 600Sundry Expenses 17 800 18 400 22 000 22 600 25 700 Required:Prepare a Cash Budget for the period 1 November and 31 December 2018
- HW 2022.1.3. The Sunstate Bank has asked Dell Printing Co. for a budgeted balance sheet for the year ended December 31, 2022. The following information is available: 1.+The cash budget shows an expected cash balance of $75,000 at December 31, 2022. 2- The 2022 sales budget shows total annual sales of $800,000. All sales are made on account and accounts receivable at December 31, 2022 are expected to be 10% of annual sales. 3.+ The merchandise purchases budget shows budgeted cost of goods sold for 2022 of $600,000 and ending merchandise inventory of $95,000. 20% of the ending inventory is expected to have not yet been paid at December 31, 2022. 4.-The December 31, 2021 balance sheet includes the following balances: Equipment $294,000, Accumulated Depreciation $122,000, Common Stock $270,000, and Retained Earnings $48,000. 5.+ The budgeted income statement for 2022 includes the following: depreciation on equipment $15,000, federal income taxes $21,000, and net income $49,000. The income…The members of Networx Ltd decide to prepare a Cash Budget for November and December 2018. The following information is available:Actual BudgetedAugust RSeptember ROctober RNovember RDecember RSales:CashCredit194 500287 300235 700350 000275 000410 000250 500400 400368 000697 000Purchases 510 000 490 000 495 000 520 000 680 000Salaries & Wages 72 600 72 600 72 600 72 600 72 600Sundry Expenses 17 800 18 400 22 000 22 600 25 700Additional information:1. Cash in respect of credit sales is collected as follows: 50% within 30 days 30% within 60 days 15% within 90 days The balance is written off as irrecoverable. BAD DEBT - IGNORE2. The following discounts are allowed on sales: 10% on cash sales 7.5% on credit sales if accounts are settled within 30 days.3. All salaries, wages and sundry expenses are paid in cash.4. Sundry expenses include depreciation of R4 200 per month. Exclude depreciation5. Seventy-five (75%) of all purchases are on credit and paid within 30 days. The balance is paid…You are required to prepare the cash budget for the two months of January and February 2021. The following is the projected information: December 2020 January 2021 February 2021 Cash sales R221,866 R239,058 R249,441 Receivables collection R188,565 R194,354 R206,276 Cash purchases R8,949 R10,443 R13,354 Operating expenses R47,858 R54,026 R66,970 Credit purchases R76,504 R82,520 R94,445 Operating expenses are paid in the month they are incurred and credit purchases are paid within 30 days of purchase (ie. in the following month). The bank balance on 1 January 2021 is expected to be R62,819 favourable. Equipment to the value of R239,357 is to be purchased on credit in January 2021 and will be paid for in 8 equal instalments, commencing on 1 February 2021. The expected payments total for February 2021 will be: