Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle.The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part.Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,100 nozzles in stock,although the latest estimate for August production indicates a requirement for only 15,600 nozzles. Total uses of the nozzle areexpected to be 15,300 in September and 16,140 in October.Nozzles are purchased at a wholesale price of $11. Eliot pays 25 percent of the purchase price in cash in the month when the parts aredelivered. The remaining 75 percent is paid in the following month. Eliot purchased 24,000 parts in July.Required:a. Estimate purchases of the nozzle (in units) for August and September.b. Estimate the cash disbursements for nozzles in August and September.Complete this question by entering your answers in the tabs below.Required A Required BEstimate purchases of the nozzle (in units) for August and September.AugustMerchandise to be purchased in units< Required ASeptemberRequired B >

Required A: Estimate Purchases of Nozzles (in Units)August:Beginning Inventory: 17,100…

Answered: Eliot Sprinkler Systems produces…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Eliot Sprinkler Systems produces equipment for lawn irrigation. One of the parts used in selected Eliot equipment is a specialty nozzle. The budgeting team is now determining the purchase requirements and monthly cash disbursements for this part. Eliot wishes to have in stock enough nozzles to use for the coming month. On August 1, the company has 17,300 nozzles in stock, although the latest estimate for August production indicates a requirement for only 16,000 nozzles. Total uses of the nozzle are expected to be 15,700 in September and 16,540 in October. Nozzles are purchased at a wholesale price of $13. Eliot pays 25 percent of the purchase price in cash in the month when the parts are delivered. The remaining 75 percent is paid in the following month. Eliot purchased 26,000 parts in July. Required: a. Estimate purchases of the nozzle (in units) for August and September. b. Estimate the cash disbursements for nozzles in August and September. Complete this question by entering your…
Adams Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. Required October sales are estimated to be $200,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 25 percent per month. Prepare a sales budget. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. The cost of goods sold is 60 percent of sales. The company desires to maintain a minimum ending inventory equal to 10 percent of the next month’s cost of goods sold. However, ending inventory of December is expected to be $12,000. Assume that all purchases are made…
Munoz Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. Required a. October sales are estimated to be $340,000, of which 40 percent will be cash and 60 percent will be credit. The company expects sales to increase at the rate of 20 percent per month. Prepare a sales budget. b. The company expects to collect 100 percent of the accounts receivable generated by credit sales in the month following the sale. Prepare a schedule of cash receipts. c. The cost of goods sold is 70 percent of sales. The company desires to maintain a minimum ending inventory equal to 20 percent of the next month's cost of goods sold. However, ending inventory of December is expected to be $12,900. Assume that all purchases are made…
Painter's Hardware purchased 8,200 gallons of paint in March. The store had 3,100 gallons on hand at the beginning of March, and expects to have 2,600 gallons on hand at the end of March. What is the budgeted number of gallons to be sold during March? Round your final answer to the nearest unit. Do not include $ sign or commas in your final answer.
Easy Clean operates a chain of dry cleaners. It is experimenting with the use of a continuous-improvement (i.e., kaizen) budget for operating expenses. Currently, a typical location has operating expenses of $28,000 per month. Plans are in place to achieve labor and utility savings. The associated operational changes are estimated to reduce monthly operating expenses by a factor of 0.99 beginning in January. Required: What are the estimated operating expenses for January? For June? For December? (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount.) January June December Estimated operating costs
Easy Clean operates a chain of dry cleaners. It is experimenting with the use of a continuous-improvement (i.e., kaizen) budget for operating expenses. Currently, a typical location has operating expenses of $30,000 per month. Plans are in place to achieve labor and utility savings. The associated operational changes are estimated to reduce monthly operating expenses by a factor of 0.99 beginning in January. What are the estimated operating expenses for January, June, and December? Please do not round intermediate calculations
CBH Company sells bicycles that they buy from various manufacturers. They are in the process of preparing a Master Budget including the Sales Budget, The Purchasing Budget, the Cash Budget, and the Income Statement for 2021. The yearly budget is broken into quarters. The year-end is December 31st. Additional Details: The average estimated selling price per electric bike is $450. There are $2040 bicycles in Bike Inventory at the end of 2020 with a value of $380,000. At the end of each quarter, CBH Company wishes to have 85% of next quarters estimated sales units in Bike Inventory. At the end of 2021 assume 2000 bikes are required in the ending inventory. For each quarter, it is estimated that 75% of sales will be cash and 25% will be credit sales. Of the credit sales, 80% pay in a quarter of the sale and 20% pay in the following quarter. Credit sales from part4 were $430000 Assume operating expenses occur evenly throughout the year and are all paid in cash For each quarter, 70% of…
CBH Company sells bicycles that they buy from various manufacturers. They are in the process of preparing a Master Budget including the Sales Budget, The Purchasing Budget, the Cash Budget, and the Income Statement for 2021. The yearly budget is broken into quarters. The year-end is December 31st. Additional Details: The average estimated selling price per electric bike is $450. There are $2040 bicycles in Bike Inventory at the end of 2020 with a value of $380,000. At the end of each quarter, CBH Company wishes to have 85% of next quarters estimated sales units in Bike Inventory. At the end of 2021 assume 2000 bikes are required in the ending inventory. For each quarter, it is estimated that 75% of sales will be cash and 25% will be credit sales. Of the credit sales, 80% pay in a quarter of the sale and 20% pay in the following quarter. Credit sales from part4 were $430000 Assume operating expenses occur evenly throughout the year and are all paid in cash For each quarter, 70% of…
CBH Company sells bicycles that they buy from various manufacturers. They are in the process of preparing a Master Budget including the Sales Budget, The Purchasing Budget, the Cash Budget, and the Income Statement for 2021. The yearly budget is broken into quarters. The year-end is December 31st. Additional Details: The average estimated selling price per electric bike is $450. There are $2040 bicycles in Bike Inventory at the end of 2020 with a value of $380,000. At the end of each quarter, CBH Company wishes to have 85% of next quarters estimated sales units in Bike Inventory. At the end of 2021 assume 2000 bikes are required in the ending inventory. For each quarter, it is estimated that 75% of sales will be cash and 25% will be credit sales. Of the credit sales, 80% pay in a quarter of the sale and 20% pay in the following quarter. Credit sales from part4 were $430000 Assume operating expenses occur evenly throughout the year and are all paid in cash For each quarter, 70% of…
Regal Furnitures produces and sells high-quality reading tables. One of the very popular models in the reading table lineup is RT360. The management accountant of the company is in the process of preparing its Selling and Administrative Expense Budget for the first quarter of the year. The following budget data are available: Assume that all of these expenses (except depreciation) are paid in cash in the month they are incurred. Answer the following questions:a) If Regal Furnitures has budgeted to sell 19,000 RT360 tables in January, then what will be the total budgeted selling and administrative expenses for January?b) If the company has budgeted to sell 16,000 RT360 tables in February, then what will be the budgeted total cash disbursements for selling and administrative expenses for February?c) If the budgeted total cash disbursements for selling and administrative expenses for March total Tk. 459,200, then how many RT360 table does the company plan to sell in March?
Exquisite Bedding Ltd. The company uses a rolling budgetary control system and is in the process of preparing the budget for the four months’ period from September to December 2020. During a preliminary review, you established that the company intends to sell each bed produced for $219 to Ultimate Care Ltd. in addition to individual customers on the same credit terms. Exquisite Bedding Ltd secured a cash loan of $120,000 (from Barclays Bank) that was secured on the land and buildings at an interest rate of 7 ½ % and this is due to be received in November 2020. Also, machinery costing $112,000 will be received in November and paid for in December 2020. You have been provided with the following budgeted balance sheet information for Exquisite Bedding Ltd as at September 1, 2020 well as estimates and other operating data (PLEASE SEE BALANCE SHEET ATTACHED AS PHOTO) Other information: Stock valuation was done using FIFO method and the closing stock of raw materials is for 100 units and…
Exquisite Bedding Ltd. The company uses a rolling budgetary control system and is in the process of preparing the budget for the four months’ period from September to December 2020. During a preliminary review, you established that the company intends to sell each bed produced for $219 to Ultimate Care Ltd. in addition to individual customers on the same credit terms. Exquisite Bedding Ltd secured a cash loan of $120,000 (from Barclays Bank) that was secured on the land and buildings at an interest rate of 7 ½ % and this is due to be received in November 2020. Also, machinery costing $112,000 will be received in November and paid for in December 2020. You have been provided with the following budgeted balance sheet information for Exquisite Bedding Ltd as at September 1, 2020 well as estimates and other operating data (PLEASE SEE BALANCE SHEET ATTACHED AS PHOTO) Other information: Stock valuation was done using FIFO method and the closing stock of raw materials is for 100 units and…

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