In preparation for the quarterly cash budget, the following revenue and cost information have been compiled. Prepare and evaluate a cash budget for the months of October, November, and December based on the given information: Month Sales Purchases August (actual) P3,000,000.00 P3,500,000.00 September (actual) P4,500,000.00 P2,000,000.00 October (forecast) P1,000,000.00 P500,000.00 November (forecast) P1,500,000.00 P750,000.00 December (forecast) P2,000,000.00 P1,000,000.00 (a) The firm collects 60 percent of sales for cash and 40 percent of its sales one month later. (b) Interest income of P50,000 on marketable securities will be received in December. How much is the total cash receipts in November? A P3,900,000 P2,400,000 P1,850,000 D) P1,300,000

In preparation for the quarterly cash budget, the following revenue and cost information have been compiled. Prepare and evaluate a cash budget for the months of October, November, and December based on the given information: Month Sales Purchases August (actual) P3,000,000.00 P3,500,000.00 September (actual) P4,500,000.00 P2,000,000.00 October (forecast) P1,000,000.00 P500,000.00 November (forecast) P1,500,000.00 P750,000.00 December (forecast) P2,000,000.00 P1,000,000.00 (a) The firm collects 60 percent of sales for cash and 40 percent of its sales one month later. (b) Interest income of P50,000 on marketable securities will be received in December. How much is the total cash receipts in November? A P3,900,000 P2,400,000 P1,850,000 D) P1,300,000

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 33E: A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent...

See similar textbooks

Similar questions

Budgeted selling and administrative expenses for King Tire Co. In P7-2 for the year ended December 31, 2016, were as follows: Required: 1. Prepare a selling and administrative expense budget, in good form, for the year 2016. 2. Using the information above and the budgets prepared in P7-2, prepare a budgeted income statement for the year 2016, assuming an income tax rate of 40%.
Roman Inc. has the following totals from its operating budgets: Prepare a budgeted income statement for the year ended December 31, 2016, assuming that income from operations is taxed at a rate of 30%.
A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent inflation rate. Listed below are selected items from next years budget before the adjustment. After adjusting for the 3 percent inflation rate, what is the companys total budget for the selected items before taxes for next year? a. 858,150 b. 860,412 c. 810,971 d. 858,971
What is the amount of budgeted cash payments if purchases are budgeted for $420,000 and the beginning and ending balances of accounts payable are $95,000 and $92,000, respectively?
Which of the following statements is not correct? A. The sales budget is computed by multiplying estimated sales by the sales price. B. The production budget begins with the sales estimated for each period. C. The direct materials budget begins with the sales estimated for each period. D. The sales budget is typically the first budget prepared.
Budgeted income statement and balance sheet As a preliminary to requesting budget estimates of sales, costs, and expenses for the fiscal year beginning January 1, 20Y9, the following tentative trial balance as of December 31, 20Y8, is prepared by the Accounting Department of Mesa Publishing Co.: Factory output and sales for 20Y9 are expected to total 3,800 units of product, which are to be sold at 120 per unit. The quantities and costs of the inventories at December 31, 20Y9, are expected to remain unchanged from the balances at the beginning of the year. Budget estimates of manufacturing costs and operating expenses for the year are summarized as follows: Balances of accounts receivable, prepaid expenses, and accounts payable at the end of the year are not expected to differ significantly from the beginning balances. Federal income tax of 35,000 on 20Y9 taxable income will be paid during 20Y9. Regular quarterly cash dividends of 0.20 per share are expected to be declared and paid in March, June, September, and December on 20,000 shares of common stock outstanding. It is anticipated that fixed assets will be purchased for 22,000 cash in May. Instructions Prepare a budgeted income statement for 20Y9. Prepare a budgeted balance sheet as of December 31, 20Y9, with supporting calculations.
Using the information for Crable and Tesch, the systems consultants in P9-3 and P9-4, prepare a budgeted income statement for the year ended December 31, 2016.
Prepare a budgeted income statement for the month ending March 31, 2016.
Use the information provided below to prepare the Cash Budget for October, November, and December2021. Provide separate monetary columns for each month.INFORMATION1. The following data and estimates are available for a project of Fego Limited for September toDecember 2021:September October November DecemberR R R RSales 130 000 110 000 120 000 140 000Wages 40 000 34 000 38 000 39 000Fixed overheads 16 000 16 000 16 000 16 000Variable overheads 16 000 13 000 15 000 17 000Materials purchases 17 000 14 000 16 000 18 0002. Sixty percent (60%) of the sales are expected to be for cash and the balance on credit. Creditcustomers usually pay in the month after the sale.3. Labour costs are paid for in the month in which they are incurred.4. Fixed overheads include R5 000 each month for depreciation and payment is made monthly.5. Variable overheads are paid for in the month after they are incurred.6. Direct materials are purchased by electronic funds transfers each month.7. The cash balance on 01…
Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Assets Cash. Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Wheeling Company Balance Sheet September 30 $ 59,000 90,000 32,400 214,000 $395,400 $ 73,000 216,000 106,400 $395,400 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $240,000 for October and $250,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 accounts receivable will be collected in October. 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise…
In preparation for the quarterly cash budget, the revenue and cost information have been compiled as follows: Month Sales (RM) Purchases (RM) August 2018 (actual) 3,000,000 3,500,000 September 2018 (actual) 4,500,000 2,000,000 October 2018 (forecast) 1,000,000 500,000 November 2018 (forecast) 1,500,000 750,000 December 2018 (forecast) 2,000,000 1,000,000 The firm collect 60 percent of sales for cash and 40 percent of its sales one month later. Interest income of RM50,000 on marketable securities will be received in December. The firm pays the purchases of 40 percent in cash and 60 percent in following month. Salaries and wages are RM450,000 in September, RM200,000 in October, RM150,000 in November and RM225,000 in December. Sales commissions are 2 percent of the preceding month's sales. Lease payments of RM150,000 must be made each month. A principal and interest payment on an outstanding loan is due in December of RM150,000. The firm pays dividends of RM50,000 at the…
Using a separate columnar worksheet or Excel worksheet, prepare a Cash Budget by month for the quarter ending September 30, 2021, from the following data obtained from the CONSCIOÜNESS Company. Support your solution with schedules of estimated receipts and payments. August P 16,000 150,000 July September Cash Sales P 12,000 P 18,000 Credit Sales Purchases 110,000 120,000 90,000 120,000 110,000 Operating expenses Interest expense 15,000 18,000 16,000 2,000 Credit sales are collected 50% in the month of sales, 40% on the month following, 8% in the second month following and 2% uncollectible. Credit sales for May and June are expected to be P100,000 and P90,000, respectively. Purchases of merchandise, all on account, are paid 60% in the month of purchase and 40% in the month following. Purchases for June are estimated at P80,000. Expenses include depreciation of P2,000 monthly, and are paid in the month incurred. Cash balance on June 30, 2021.