FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The sales budget for Perrier Inc. is
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- Schuepfer Incorporated bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,500 units are planned to be sold in March. The variable selling and administrative expense is $4.00 per unit. The budgeted fixed selling and administrative expense is $35,850 per month, which includes depreciation of $5,000 per month. The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be: Multiple Choice $49,850 $44,850 $30,850 $14,000arrow_forwardGarden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter $ 210,000 $ 281,000 The company's beginning cash balance for the upcoming fiscal year will be $26,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Required: Prepare the company's cash budget for the upcoming fiscal year.…arrow_forwardAssume a company is preparing a budget for its first two months of operations. During the first and second months it expects credit sales of $42,000 and $74,000, respectively. The company expects to collect 35% of its credit sales in the month of the sale and the remaining 65% in the following month. What amount of cash collections from credit sales would the company include in its cash budget for the second month?arrow_forward
- Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter $ 180,000 $ 260,000 Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest 2nd Quarter $ 330,000 $ 230,000 The company's beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for…arrow_forwardGarden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts Total cash disbursements 1st Quarter 2nd Quarter $ 350,000 $ 393,000 3rd Quarter $ 400,000 $ 353,000 4th Quarter $ 420,000 $ 373,000 $ 470,000 $ 363,000 The company's beginning cash balance for the upcoming fiscal year will be $20,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for the upcoming fiscal year. (Repayments, interest, and cash deficiencies should be indicated by a minus sign.) 2nd Quarter…arrow_forwardElordi Engineers Corp. has the following budgeted sales data (in dollars): June July August September Credit Sales 290,000 300,000 260,000 310,000 Cash Sales 70,000 70,000 70,000 70,000 The regular pattern of collection of credit sales is 30% in the month of sale, 60% in the month following sale, and the remainder in the second month following the month of sale. There are no bad debts. What would the budgeted cash receipts during September be? Round your answer to the nearest whole number.arrow_forward
- Bagel Company is preparing its cash budget for the upcoming month. The beginning cash balance for the month is expected to be $17,000. Budgeted cash receipts are $87,000, while budgeted cash disbursements are $70,000. Bagel Company wants to have an ending cash balance of $50,000. The excess (deficiency) of cash available over disbursements for the month would bearrow_forwardThe selling and administrative expense budget of Garney Corporation is based on the number of units sold, which are budgeted to be 4,500 units in October. The variable selling and administrative expense is $6.50 per unit. The budgeted fixed selling and administrative expense is $28,080 per month, which includes depreciation of $11,520. The remainder of the fixed selling and administrative expense represents current cash flows. Required: Prepare the selling and administrative expense budget for October. Note: Do not round your intermediate calculations. Round your final answers to the nearest whole number. Fixed selling and administrative expense Total selling and administrative expense Cash disbursements for selling and administrative expenses October S 0 0arrow_forwardAssume the following budgeted information for a merchandising company: Budgeted sales (all on credit) for November, December, and January are $248,000, $218,000, and $209,000, respectively. • Cash collections related to credit sales are expected to be 70% in the month of sale, 30% in the month following the sale. • The cost of goods sold is 70% of sales. • Each month's ending inventory equals 20% of next month's cost of goods sold. • 30% of each month's merchandise purchases are paid in the current month and the remainder is paid in the following month. • Monthly selling and administrative expenses that are paid in cash in the month incurred total $25,000. • Monthly depreciation expense is $9.000. . The budgeted net operating income for December would be: Multiple Choice $40,400 $25,734 $16,734 $31,400arrow_forward
- Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: Total cash receipts. Total cash disbursements 1st Quarter 2nd Quarter 3rd Quarter $ 210,000 $ 240,000 $ 281,000 $ 241,000 The company's beginning cash balance for the upcoming fiscal year will be $26,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest $360,000 $ 251,000 Required: Prepare…arrow_forwardi need answer step by steparrow_forwardSolve this question with steps please. The subject is Managerial Accounting.arrow_forward
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