Player Ltd specializes in the importation and sale of equipment for children's indoor play centers. The company was set up two years ago by its joint shareholders, Mr and Mrs Smith. The business has been very successful, expanding rapidly over the last year, and the cash balance in the company's current account has exceeded £1 million on several occasions recently. Mr and Mrs Smith,have asked you, an accounting technician for Player Ltd, to assist them in managing their cash balances over the next six months. You have been provided with the following information. (1) The bank balance on 1 July 2019 is forecast at £1-2 million in credit. (ii) Sales for May and June 2019 are £1-3 million per month. They are expected to rise to £1.5 million in July 2019, £1-7 million in August and £1.9 million inSeptember. They will then fall to £1-4 million for each of the following six months. This is due to a downturn in demand as the weather improves. (III) All sales are made on credit. 2% of debtors do not pay at all, 70% pay one monthafter sale and the remaining 28% pay two months after sale. (iv) Purchases are made one month prior to sales, and two months' credit is taken from suppliers. (V) The company's gross profit margin is 50%. (vi) The cost of employing Player Ltd's permanent staff is £150,000 per month. PlayerLtd also employs temporary staff during July, August and September at anadditional cost equating to 3% of sales for each month. (vii) Player Ltd uses a courier to dispatch the equipment to its customers. The cost of this service is 2% of sales value in July to September, falling to 1% thereafter. (viii) Administration costs are forecast at £30,000 for July. These costs are directly proportional to sales each month. (ix) Mr and Mrs Smith, will be attending a conference abroad in July 2019 at atotal cost of £5,000. They must complete the booking form and send it off, along with a deposit of £2,000, by the end of July 2019. The final balance is due in December. (X) The company charges depreciation of £45,000 each month. (xi) Player Ltd also owns two indoor play centres, that it rents out at the rate of £3,500each per month from July to October, falling to £3,000 per month thereafter. All rents are received one month in advance. (XII) The company will invest in a new computer system later in the year. This will be paid for by two equal installments of £200,000, one in December and one in March 2020. REQUIRED: (a) Prepare a monthly cash budget for EACH of the six months to 31 Dec 2019, showing.clearly any necessary workings. Note: All workings should be in £000. Unless told otherwise, assume that payments are made in the month in which the costs are incurred. (b) In a changing environment the incremental budgeting approach is often viewed tobe obsolete and instead firms should adopt the ZBB approach. Discuss?

You have decided to go into the business of selling Beamers. You decide to operate the business as a corporation, Chris's Beamer Biz, Inc. On January 1, 20X1 the company issued you 100 shares of stock for $20,000 of cash. The company borrowed $10,000 from your Uncle Mike. For the $10,000 borrowed from your uncle, the company signed a note agreeing to pay back that amount on December 31, 20X4 and will pay interest at 10% at the end of each year. On January 1, 20X1, the company bought 11 Beamers for $2,500 each. During the year the company sold 8 Beamers for $8,000 each. They also paid a security deposit of $2,000, advertising expense of $6,000 and 12 months' rent of $18,000. In addition to the cash invested on January 1st, on August 1" you also invest a piece of land that you own into the business that is worth $40,000 in exchange for 200 more shares of stock. The first year's interest to Uncle Mike of $1,000 is paid on December 31 of 20X1. The tax rate is 30% of income before taxes and…

Many businesses borrow money during periods of increased business activity to finance inventory and accounts receivable. Nordstrom, Inc., is one of America's most prestigious retailers. Each Christmas season, Nordstrom builds up its inventory to meet the needs of Christmas shoppers. A large portion of these Christmas sales are on credit. As a result, Nordstrom often collects cash from the sales several months after Christmas. Assume that on November 1 of this year, Nordstrom borrowed $4.8 million cash from Bank of America to meet short-term obligations. Nordstrom signed an interest-bearing note and promised to repay the $4.8 million in six months. The annual interest rate was 8%. All interest will accrue and be paid when the note is due in six months. Nordstrom's accounting period ends December 31. Required: 1. Determine the financial statement effects for each of the following: (a) the issuance of the note on November 1, (b) the impact of the adjusting entry at the end of the…

33. subject:- Accounting