Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the lastquarter of the year is as follows:Cash salesCredit salesTotalOctober$ 95,00095,000November$ 83,00099,600December$ 89,00097, 900$ 190,000$ 182,600$ 186,900Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the monthof sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for paymentwithin 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount.Inventory purchases each month are 100% of the cost of the following month's projected sales. (The gross profit rate for Timpco isapproximately 30%.) All merchandise purchases are made on credit, with 20% paid in the month of purchase and the remainder paid inthe following month. No cash discounts for early payment are available.Required:1. Calculate the budgeted total cash receipts for November and December. (Round your final answers to the nearest whole dollaramount.)2. Calculate budgeted cash disbursements for November and December (budgeted total sales for January of the coming year equals$181,000).1. Total cash receipts2. Budgeted cash disbursementsNovemberDecember

Budgeted cash ReceiptsNovemberCash Sales$83,000Collection from Accounts Receivables:Collection from…

Answered: Required: 1. Calculate the budgeted…

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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From the following information, prepare a monthly cash budget for the three months ending 31st December 2023. Month June July August September October November December Materials Wages 1,800 650 2,000 750 2,400 750 2,250 750 2.300 800 2,500 2,600 900 1,000 The credit terms are as follows: 10% of sales are in cash. 3 months to debtors. 2 months from Creditors. Sales 3,000 3,250 3,500 3,750 4,000 4,250 4,500 The lag in payment for wages is 1/4 month and 1/2 month for overheads. The cash and bank balance on 1st October is expected to be RO 1,500. Other information is given as follows: Admin. Selling, etc 160 160 175 175 200 200 225 Production 225 225 250 300 300 350 350 Preference share dividends @ 5% on RO 50,000 are to be paid on 1st December. Calls on 250 equity shares @RO 2 per share are expected on 1st November. Dividends from investments amounting to RO 250 are expected on 31st December. Income tax (advance) is to be paid in December RO 1,500 Plant and machinery are to be installed…
The following information was taken from Bonita Industries's cash budget for the month of July: Beginning cash balance $440000 Cash receipts 404000 Cash disbursements 558000 If the company's policy is to maintain a minimum end of the month cash balance of $430000, the amount the company would have to borrow in July is $286000. $144000. $10000. $26000.
Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. January February⚫ March Cash Receipts Cash payments $ 521,000 408,000 457,000 $ 467,800 354,800 522,000 Kayak requires a minimum cash balance of $50,000 at each month-end. Loans taken to meet this requirement charge 1%, interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $50,000 is used to repay loans at month-end. The company has a cash balance of $50,000 and a loan balance of $100,000 at January 1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)
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Budgeted cash payments. Would I begin with Cost of Direct materiasl purchase of April-3,010, May-3,650,June-4,015, 2nd Quarter -10,675?
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2, 3, 4 E2-10 Using accounting vocabulary Match the accounting terms with the corresponding definitions. a. A detailed record of all increases and decreases that have occurred in a particular asset, liability, or equity during a period 1. Posting 2. Account 3. Debit b. The record holding all the accounts of a business, the changes in those accounts, and their balances 4. Journal c. A journal entry that is characterized by having multiple debits and/or multiple credits 5. Chart of accounts 6. Trial balance d. A record of transactions in date order 7. Normal balance e. Left side of a T-account 8. Ledger f. Side of an account where increases are recorded 9. Credit g. Transferring amounts from the journal to the ledger 10. Compound journal entry h. Right side of a T-account i. A list of all accounts with their balances at a point in time j. A list of all accounts with their account numbers
Please answer with excel forumlas and step by step explanations. Kayak Company budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year. Cash Receipts Cash payments January $ 569,000 $ 508,000 February 455,000 425,000 March 505,000 600,000 Kayak requires a minimum cash balance of $38,000 at each month-end. Loans taken to meet this requirement charge 0.7% interest per month, paid at each month-end. The interest is computed based on the beginning balance of the loan for the month. Any preliminary cash balance above $38,000 is used to repay loans at month-end. The company has a cash balance of $38,000 and a loan balance of $76,000 at January 1. Prepare monthly cash budgets for January, February, and March.
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Required: 1. Calculate the budgeted total cash receipts for November and December. (Round your final answers to the nearest whole dollar amount.) 2. Calculate budgeted cash disbursements for November and December (budgeted total sales for January of the coming year equals $181,000).