Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Transcribed Image Text:Prepare a flexible budget for 13,000, 16,000, and 20,000 filing cabinets for the month ending February 28 in the Assembly Department similar to Exhibit 5. Round your
final answers to the whole dollar, if required.
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- owa Imaging Center provided the financial information in Exhibit 5.15 below. Prepare a cash budget for the quarter ending March 20X1. For Blackboard you will enter your ENDING cash balance for the months of January 20X1, February 20X1, March 20X1, and the Quarter ending March 20X1. I want you to submit your work for this problem by email so I can review the entire document. Exhibit 5-15 Iowa Imaging Center Givens Revenues and Expenses Patient Revenues, 20X0 Estimated Patient Revenues, 20X1 Given 1 October $4,000,000 Given 2 January $4,300,000 November $4,200,000 February $4,350,000 December $4,300,000 March $4,400,000 Other Revenues, 20X1 Estimated Cash Outflows, 20X1a Given 3 January $90,000 Given 4 January $4,250,000…arrow_forwardPlease help with question 1 and 2. Both the images are of the same continuing questionarrow_forwardKevin Montgomery Retail seeks your assistance to develop cash and other budget information for May, June, and July. At April 30, the company had cash of $6,000, accounts receivable of $439,000, inventories of $448,250, and accounts payable of $135,055. The budget is to be based on the following assumptions: SALES: Each month's sales are billed on the last day of the month. Customers are allowed a 3% discount if payment is made within 10 days after the billing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts). 55% of the billings are collected within the discount period; 30% are collected by the end of the month; 9% are collected by the end of the second month; and 6% turn out to be uncollectible. PURCHASES: The marketing, general, and administrative expenses and 60% of all purchases of merchandise are paid in the month purchased, with the remainder of merchandise purchases paid in the following month. The number of units in each month's ending…arrow_forward
- Kevin Montgomery Retail seeks your assistance to develop cash and other budget information for May, June, and July. At April 30, the company had cash of $14,500, accounts receivable of $473,000, inventories of $482,250, and accounts payable of $169,055. The budget is to be based on the following assumptions: SALES: Each month's sales are billed on the last day of the month. Customers are allowed a 3% discount if payment is made within 10 days after the billing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts). 55% of the billings are collected within the discount period; 30% are collected by the end of the month; 9% are collected by the end of the second month; and 6% turn out to be uncollectible. PURCHASES: The marketing, general, and administrative expenses and 60% of all purchases of merchandise are paid in the month purchased, with the remainder of merchandise purchases paid in the following month. The number of units in each month's…arrow_forwardI need the working solution for the cash balance at the beginning month. Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $130,000 $156,000 $205,000 Manufacturing costs 55,000 67,000 74,000 Selling and administrative expenses 46,000 47,000 78,000 Capital expenditures _ _ 49,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent $10,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid…arrow_forwardMast Corporation seeks your assistance in developing cash and other budget information for May, June, and July. At April 30, the company had cash of $12,000, accounts receivable of $868,000, inventories of $117,720, and accounts payable of $26,674. The budget is to be based on the following assumptions. • Each month's sales are billed on the last day of the month. • Customers are allowed a 2 percent discount if payment is made within 10 days after the billing date. Receivables are recorded in the accounts at their gross amounts (not net of discounts). • The billings are collected as follows: 65 percent within the discount period, 20 percent by the end of the month, and 12 percent by the end of the following month. Three percent is uncollectible. Purchase data are as follows. • Of all purchases of merchandise and selling, general, and administrative expenses, 64 percent is paid in the month purchased and the remainder in the following month. • The number of units in each month's ending…arrow_forward
- Prepare a cash budget to Pasadena Home Health Agency for the months of May, June, and July. The company wishes to maintain a $200, 000 minimum cash balance during the period, and it presently has a $220, 000 balance as of April 30. Revenues are presented in the table below. Revenues for Pasadena Home Health Agency January $500,000 February $500,000 March $600,000 April $600,000 May $700, 000 June $800, 000 July $1,000,000 August $ 1,000,000 The agency collects 30% of its revenue in the month billing occurred, 30% in the next month, and 25% in the following month. The agency fails to collect 15% of its revenue because of either bad debt or contractual allowances. Expense budget relationships are presented below: Payroll = $50,000 per month plus 0.50 x revenues Supplies = 0.10 x revenues Rent = $50,000 per month Debt service = $150,000 in July Capital expenditures $75,000 in June Eighty percent of payroll expense is paid in the month this expense was incurred, and 20% is paid in the…arrow_forwardAnswer in text form with explanation computation for each steps for all parts correctlyarrow_forwardThe controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May: Sales 116,000 Manufacturing Costs 49,000 Selling and administrative expenses 34,000 Capital expenditures - June: Sales 143,000 Manufacturing costs 61,000 Selling and administrative expenses 39,000 Capital expenditures - July: Sales 186,000 Manufacturing Costs 67,000 Selling and administrative expenses 41,000 Capital expenditures 45,000 The company expects to sell about 15% of his merchandise for cash of sales account 65% are expected to be collected in the month following the sale and the remainder of the following month (second month following sale). Depreciation, insurance, and property tax expense represent $6,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in September, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80%…arrow_forward
- Refer to the picture for the problem and template. 1 picture has the info and prompt. The other picture has the template.arrow_forwardRequired 1. Prepare a cash receipts budget schedule for each of the first three months (July – September), including the total receipts per month 2. Prepare a material purchases budget schedule for each of the first three months (July – September), including the total purchases per month 3. Prepare a cash budget for the month of July. Include the owners’ cash contributionsarrow_forwardHugo Medical Supply has applied for a loan. Pacific Commerce Bank has requested a budgeted balance sheet as of April 30, and a combined cash budget for April. As Hugo Medical Supply's controller, you have assembled the following information: a. March 31 equipment balance, $52,600; accumulated depreciation, $41,300. b. April capital expenditures of $ 42,400 budgeted for cash purchase of equipment. c. April depreciation expense, $700. d. Cost of goods sold, 60%of sales. e. Other April operating expenses, including income tax, total $14,200, 35% of which will be paid in cash and the remainder accrued at April 30. f. March 31 owners' equity, $92,600. g. March 31 cash balance, $40,300. h. April budgeted sales, $90,000, 70% of which is for cash. Of the remaining 30%, half will be collected in April and half in May. i. April cash collections on March sales, $29,100. j. April cash payments of March 31 liabilities incurred for March…arrow_forward
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