Here are the relevant estimates for the budget preparation of Marvel Corporation for the fourth quarter of 2022: Credit sales Credit purchases Cash disbursements: Wages, taxes, and expenses Interest Equipment Credit sales collections: Collected in month of sale Collected month after sale Never collected September credit sales September credit purchases Beginning cash balance instructions: October 1428 896 857 338 390 432 33 488 0 36% 62% 2% 1271222 762 733 574 653 November 1661 520 996 979 443 094 33 488 177 968 2.1 Explain the role of cash budget. 2.2 Using the above information, complete the following cash budget. purchases are paid one month after the purchase. December 1227 856 736 714 377 608 33 488 107 856 Assume that all credit

Here are the relevant estimates for the budget preparation of Marvel Corporation for the fourth quarter of 2022: Credit sales Credit purchases Cash disbursements: Wages, taxes, and expenses Interest Equipment Credit sales collections: Collected in month of sale Collected month after sale Never collected September credit sales September credit purchases Beginning cash balance instructions: October 1428 896 857 338 390 432 33 488 0 36% 62% 2% 1271222 762 733 574 653 November 1661 520 996 979 443 094 33 488 177 968 2.1 Explain the role of cash budget. 2.2 Using the above information, complete the following cash budget. purchases are paid one month after the purchase. December 1227 856 736 714 377 608 33 488 107 856 Assume that all credit

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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11. Calculating the Cash Budget Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. LO 3 April May June $598,000 282,000 $689,000 $751,000 Credit sales 302,000 338,000 Credit purchases Cash disbursements 137,000 129,000 179,000 Wages, taxes, and expenses 15,600 15,600 15,600 Interest 53,500 6,600 248,000 Equipment purchases The company predicts that 5 percent of its credit sales will never be collected 35 percent of its sales will be collected in the month of the sale, and the re- maining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2019, credit sales were $561,000. Using this information, com- plete the following cash budget: April May June $182,000 Beginning cash balance Cash receipts Cash collections from credit sales Total cash available Cash disbursements Purchases 289,000 Wages, taxes, and expenses Interest Equipment purchases Total cash disbursements…
How much should this company expect in cash collections for the month of January? ROUND TO NEAREST WHOLE DOLLAR
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Prepare Cash Budget For 3 Months Brewster Corporation expects the following cash receipts and disbursements during the first quarter of the year (receipts exclude new borrowings and disbursements exclude interest payments on borrowings since January 1) January February March $280,000 $300,000 $270,000 Cash receipts Cash disbursements 260,000 340,000 280,000 The expected cash balance at January 1, is $62,000. Brewster wants to maintain a cash balance at the end of each month of at least $60,000. Short-term borrowings at 1% interest per month will be used to accomplish this, if necessary. Borrowings (in multiples of $1,000) will be made at the beginning of the month in which they are needed, with interest for that month paid at the end of the month. Prepare a cash budget for the quarter ended March 31. Brewster Corporation Cash Budget for the Quarter Ended March 31 January Beginning cash balance Cash receipts Short-term borrowings Cash available Cash disbursements Interest payment Total…
Exercises 1: Questions for discussion 1. Describe the items reflected in the sales budget. 2. List the items included in the production budget 3. Identify the items that comprise the operating budget Exercises 2: Word Problems Roel Trading Company presents the actual sales for the first three months of year 2019 in its own products as follows: Product B P 540,000 P 567,000 P 595,350 Product A Total Sales Janaury February March P 880,000 P 941,000 P 1,006,750 The business expects that the trends for the past three months will P 340,000 P 374,000 P 411400 continue in April and May 2019. Required: Determined the projected sales for April and May 2019 for the two products. Round the amounts to thousand pesos.
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The Foress Antique Mall budgeted credit sales in the first quarter of 2021 to be as follows: January February March $188,800 200,600 214,000 Credit sales in December 2020 are expected to be $236,000. The company expects to collect 70 percent of a month's sales in the month of sale and 30 percent in the following month. Estimate cash receipts for each month of the first quarter of 2021. Collection of credit sales Collection of December sales $ Collection of January sales Collection of February sales Collection of March sales $ January $ $ February $ $ March Ac Go
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2020: April May June Credit sales $ 312,000 $ 292,000 $ 352,000 Credit purchases 120,000 143,000 168,000 Cash disbursements Wages, taxes, and expenses 43,200 10,700 62,200 Interest 10,200 10,200 10,200 Equipment purchases 72,000 134,000 0 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale, and the remaining 55 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase. In March 2020, credit sales were $182,000, and credit purchases were $122,000. Using this information, complete the following cash budget. (Do not round intermediate calculations.)
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3. Cash collection for month of February. SHOW WORK.