Fayette Medical Clinic has budgeted the following cash flows.February$232,000JanuaryMarchCash receiptsCash paymentsFor inventory purchasesFor S&A expenses$240,000$272,000220,00062,000164,00064,000190,00054,000Fayette Medical had a cash balance of $16,000 on January 1. The company desires to maintain a cash cushion of $10,000. Funds areassumed to be borrowed, in increments of $2,000, and repaid on the last day of each month; the interest rate is 1 percent per month.Repayments may be made in any amount available. Fayette pays its vendors on the last day of the month also. The company had amonthly $80,000 beginning balance in its line of credit liability account from this year's quarterly results.RequiredPrepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round intermediate and final answers tothe nearest whole dollar amounts.)X Answer is not complete.Cash BudgetJanuaryFebruaryMarchSection 1: Cash receiptsBeginning cash balance16,000$10,20013,030Add: Cash receipts240,000 O232,000 O272,000Total cash available256,000242,200285,030Section 2: Cash paymentsFor inventory purchases220,000164,000190,000For S&A expenses62,00064,00054,000Interest expense per month800 V1,170 X1,140 VTotal budgeted disbursements282,800229,170245,140Section 3: Financing activities(26,800)13,03039,890Borrowing (repayment)37,000 XEnding cash balance10,200$13,030$39,890

Cash budget refers to a budget which shows the estimated cash flows of the company during a specific…

Answered: Required Prepare a cash budget. (Any…

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 above given information, I am to construct a tabular form of cash budget, however, I don't really understand the question, so I think my answer is wrong, can you try it for me so I can check with my answer?
LB Enterprises (LB) is preparing its budget for the first quarter of 2019. LB's balance sheet as of December 31, 2018 is as follows: Assets Liabilities Cash $5,000 Accounts Payable $9500 Accounts Recievable 28,000 Inventories Direct Materials 8,100 Finished Goods (500 Units) 16,870 Stockholders Equity Equipment - gross 45,000 Accumulated depreciation 15.000 Common Stock $15,000 Net Equipment 30,000 Retained Earnings 63,470 Total Assets $87,970 Total Liabilities and $87,960 Equity LB sells one product for $45/unit. The Company forecasts that it will sell 2,000; 1,500; 1,600; and 1,700 units in January, February, March and April, respectively. • Sales to customers are all on credit. 40% of the cash for these sales is collected in the month of the sale and the remaining 60% is collected in the following month. LB wants finished goods inventory equal to 25% of the next month's sales on hand at the end of each month. LB wants direct materials equal to 75% of the current month's production…
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Please provide complete and correct answer for both requirements and show all work like explanation , computation , formula with steps. Answer in text. Million thanks !
(a) The business needs to have a sense of its future cashflows and therefore requires thepreparation of the following: ▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each of the months October to December. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account) for each of the months October to December. ▪ A cash budget, with a total column, for the quarter ending December 31, 2021, showing the expected cash receipts and payments for each month and the ending cash balance for each of the three months, given that no financing activities took place.
Please help solve steps
which one is correct please confirm? QUESTION 16 When preparing a cash budget, once a firm has estimated its cash receipts the firm must ____________. a. pay dividends to its stockholders b. determine the desired cash balance c. plan a pro forma statement d. schedule disbursements
A cash budget a. is an optional feature of a master budget. b. requires input from all parts of the organization. c. takes the place of another budget. d. is prepared only at year end.
The amount of prepaid expense reflected in the disbursement section of the cash budget is the same amount that is found on the monthly operating statement. True False
III. DETAILS OF PERSONAL BUDGET PLAN: (List down your possible income and expected expenses). ACTUAL AMOUNT (In PARTICULARS EXPECTED AMOUNT (In Php) DIFFERENCE (In Php) Php) A. CASH INFLOWS: list down example of ALLOWANCE 0.00 expected income OTHER SOURCE 0.00 0.00 0.00 0.00 0.00 TOTAL CASH INFLOWS PHP 0.00 PHP 0.00 PHP 0.00 B. SPENDING: FOODS list down 0.00 example of expected EDUCATIONAL EXPENSES 0.00 PERSONAL EXPENSES 0.00 OTHER EXPENSES 0.00 expenses 0.00 |TOTAL EXPENSES PHP 0.00 PHP 0.00 PHP 0.00 VARIANCES PHP 0.00 PHP 0.00 PHP 0.00 RESULT: FINDINGS: RECOMMENDATION:
Cash budget is only allowed to be done on a monthly basis. * True O False

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Required Prepare a cash budget. (Any repayments/shortage should be indicated with a minus sign. Round intermediate and final answers to the nearest whole dollar amounts.)