Your Company is working on its cash budget for July. The budgeted beginning cash balance is $46,000. Budgeted cash receipts total $174,000 and budgeted cash disbursements total $175,000. The desired ending cash balance is $50,000. What is the excess (deficiency) of cash available over disbursements for July? Group of answer choices $ 45,000 $221,000 $ 50,000 $ 1,000 $ 47,000
Q: The prior period will be affected if during the current year the management of an entity decides to…
A: Current year is the present accounting year. Prior period is the…
Q: The functional presentation of expenses in the income statement is usually shown by grouping into…
A: Under functional presentation, the expenses are categorized in the income statement on the basis of…
Q: The following account balances were taken from the books of ABC Company for the month of March.…
A: Income statement: The income statement shows the company's revenues and expenses earned during the…
Q: There are differences between the IFRS and GAAP (after FASB issued ASU 2017-04 to simplify the…
A: GIVEN There are differences between the IFRS and GAAP (after FASB issued ASU 2017-04 to…
Q: In 2021, Jasmine and Thomas, a married couple, had taxable income of $150,000. If they were to file…
A: In this question, We will find out couple's marriage penalty and benefits.
Q: A home theater system is on sale for $777. If the list price is $925, find the percent of markdown.…
A: Markdown means the reduction in the price of the sale value of goods. Formula: Markdown amount =…
Q: Sales in Units 50,000 75,000 90,000 80,000 = of preparing a production budget for the: n that…
A: Production budget calculates the number of units to be produced in a period . It based on budgeted…
Q: On December 31, 2016, after closing, the ledgers of Premium Company contained these accounts and…
A: Formulas for the requirements are as follows:- Total Manufacturing Cost = Direct Material +Direct…
Q: Use the following information to complete the Financial Statements a. Average collection period of…
A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…
Q: Icon Company provided the following data for the current year: Sales on account Notes received to…
A: Under double entry system of bookkeeping one account is debited and other is credited. 1. Revenue…
Q: Alyeski Tours operates day tours of coastal glaciers in Alaska on its tour boat the Blue Glacier.…
A: Alyeski Tours Flexible Budget Foe the Month Ended July 31 Number of Cruises…
Q: Sandhill Limited sponsors a defined benefit pension plan, and follows ASPE. The corporation's…
A: The company commits to provide the monthly income once the employee retire in a defined benefit…
Q: for example on this question. Received bill from the water and sewer department for services,…
A: Operating Utilities Expenses: A utility expense is the cost of energy, heat, sewage, and water use…
Q: Unlimited Doors showed supplies available during the year of $1,700. A count of the supplies on hand…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Dominador's Pizza Inc. enters into a franchise agreement on December 31, 20x7 giving Doming Corp.…
A: Franchise Accounting In the franchise Accounting the recognition of performance obligation is…
Q: You are an internal auditor for Shannon Supplies, Inc., and are reviewing the company’s preliminary…
A: Journal Entries: Journal entries are recorded to show the transactions entered by a company in day…
Q: HET purchased 80% of the 10,000 outstanding shares LNET had on Jan. 1, 2019 for $300,000 cash. On…
A: In this question, We will find total acquisition differential on January .1, 2019.
Q: Dominador's Pizza Inc. enters into a franchise agreement on December 31, 20x7 giving Doming Corp.…
A: Franchise Revenue To recognize the franchise revenue is one of the important task of the franchise…
Q: Create a Statement of Cash Flows using the information provided.
A: The cash flow statement is the statement that depicts the inflows and outflow of cash and cash…
Q: Assume that AntonTech starts selling TechStop franchises. TrueTech charges. Franchisees an initial…
A: Revenue is the revenue from normal business operations and is calculated by multiplying the average…
Q: 1. How to calculate the value of a 6 year 2% coupon bond with semiannual payments, 1000 par.…
A: Solution Note : Dear student as per the Q&A guideline we are required to answer the first…
Q: The accounting principle that considered the business to have a separate and distinct personality…
A: Accounting is a systematic process of identifying, measuring, recording, classifying, summarising,…
Q: You are considering investing $64,000 in new equipment. You estimate that the net cash flows will be…
A: Investing in new Equipment $ 64,000 Life of Equipment 8 year Salvage Value $…
Q: Find the future value of an ordinary annuity of $300 paid quarterly for 8 years, if the interest…
A: Solution: Future value of annuity is the future value of a series of payments of equal amount at…
Q: The owner of ABC Company invested cash to the business amounting ₱500,000 and office furniture and…
A: Owner Capital at the end of the period = Owner Capital at the beginning of the period + Additional…
Q: Auchiel and Ben are working in patnership as accountants. Kuria gives auchiel ksh. 100,000 for…
A: Partnership: A partnership is a for-benefit business association included at least two people. State…
Q: Khaki shorts pairs Khaki pants pairs
A: Calculation of Contribution margin per pair of shorts per minute and giving rank to the products…
Q: Case Scenario1 - Hien Hien is in business selling high quality glassware to retailers. Her…
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Which of the following accounts is included in the Post-Closing Trial Balance? O Allowance for Bad…
A: Solution 1: Post closing trial balance is prepared after closing the temporary accounts in income…
Q: LAMPERT ROOFING Worksheet For the Month Ended March 31, 2022 Account Titles Trial…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: There are differences between the IFRS and GAAP (after FASB issued ASU 2017-04 to simplify the…
A: GIVEB There are differences between the IFRS and GAAP (after FASB issued ASU 2017-04 to simplify…
Q: On December 31, 2020, Sack Port Ventures Inc. borrowed $103,000 by signing a four-year, 8.0%…
A: Formula: Amount of principal in each payment = Total borrowed amount / Number of years note.
Q: True or false Total net cash provided from the three major activities less total net cash used…
A: Net increase or decrease in cash or cash equivalents = Net cash provided from the three major…
Q: Credit termog 1/10, n/30 means
A: A discount provided by the seller to the buyer on the purchase of the goods and services by reducing…
Q: Question 9: During a recent week, Jonathan Phelps worked 38 regular hours. He earns $10.25/hour and…
A: Federal tax withholding is where your employer takes a certain amount of money out of your paycheck…
Q: a-1. Determine the unadjusted rate of return and (use ave places. (i.e., 0.2345 should be entered as…
A: IRR is a tool that is used to calculate the return over the project cash flow or its investment. If…
Q: The following transactions of MORALES Accounting Firm during the first month of Operations: April 1…
A: The journal is prepared to record the transactions of the business on daily basis. The ledger…
Q: JB has earned the following income in 2022 Salary as a professor, net of withholding tax of P50, 000…
A: Income Tax Rate for 2022 as per BIR for individuals in Phillipines Income…
Q: Example 62(a). A manufacturing firm purchases 2000 units of a particular item per year at a unit…
A: Optimum Order Quantity=2×Annual Demand×Ordering Cost per orderCarrying Cost per unit per annum
Q: Dargent Trading applies a markup of 40%. At the start and end of the year, inventory was valued at…
A:
Q: On December 31, 2020, Sack Port Ventures Inc. borrowed $103,000 by signing a four-year, 8.0%…
A: Installment Notes is an Financial instrument which is used to borrow money from financial…
Q: Prettiest Company is a manufacturing firm that uses job-order costing. The company's inventory…
A: Preparation of cost sheet is based on classification of cost i.e. prime cost (direct material +…
Q: A credit sale of $4000 is made on April 25, terms 2/10, n/30, on which a return of $250 is granted…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Harbin Ltd. has a 31 December year end. A motor vehicle was acquired in July 2019 for £20,000.…
A: Depreciation: It implies to a decrease in the book value of a fixed asset over the time because of…
Q: John's Tree Service depreciation for the month is $500. The adjusting journal entry is: O A.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Why do unions that have few or no minimum wage workers work to raise the minimum wage? O To drive as…
A: Wages When a payment is made for the work done to an employee by the employer is known as a wage…
Q: Domingo Corporation uses the weighted-average method in its process costing system. This month, the…
A: Solution... Beginning inventory + units started in - units completed and transferred out. = 1,800…
Q: QUESTION 2 Itemized deductions are an add back for AMT purposes O True False
A: Solution Itemized deduction is the expense which is substracted from adjusted gross income in order…
Q: Accounting Jay owns 100% of Kaye Company. In 2020, Kaye Company recognizes a long-term capital gain…
A: Solution Sole proprietorship is a type of business in which only person are able to carry on…
Q: Prepare a 3 column cash book from the following information 1st January 2011 HI
A: Answer:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2019 and 2020: Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2019. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal, and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and the remainder are credit sales. The company finds that typically 10 percent of a months credit sales are paid in the month of sale, 70 percent are paid the next month, and 15 percent are paid in the second month after sale. Expected cash receipts in July are budgeted at what amount? a. 114,520 b. 143,150 c. 145,720 d. 156,000Relevant data from the operating budget of The Framers are: Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May The beginning cash balance was $50,000 and a required minimum cash balance is $10,000. Prepare a cash budget for the first two quarters of the year.
- 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: 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 50,000 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 in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Cash budget The controller of Mercury Shoes Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 60% are expected to be collected in the month following the sale and the remainder the following month (second month after sale). Depreciation, insurance, and property tax expense represent 12,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in February, and the annual property taxes are paid in November. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of June 1 include cash of 42,000, marketable securities of 25,000, and accounts receivable of 198,000 (150,000 from May sales and 48,000 from April sales). Sales on account in April and May were 120,000 and 150,000, respectively. Current liabilities as of June 1 include 13,000 of accounts payable incurred in May for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 24,000 will be made in July. Mercury Shoes regular quarterly dividend of 15,000 is expected to be declared in July and paid in August. Management desires to maintain a minimum cash balance of 40,000. Instructions Prepare a monthly cash budget and supporting schedules for June, July, and August. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?Cash Budget The controller of Feinberg Company is gathering data to prepare the cash budget for July. He plans to develop the budget from the following information: a. Of all sales, 40% are cash sales. b. Of credit sales, 45% are collected within the month of sale. Half of the credit sales collected within the month receive a 2% cash discount (for accounts paid within 10 days). Thirty percent of credit sales are collected in the following month; remaining credit sales are collected the month thereafter. There are virtually no bad debts. c. Sales for the second two quarters of the year follow. (Note: The first 3 months are actual sales, and the last 3 months are estimated sales.) d. The company sells all that it produces each month. The cost of raw materials equals 26% of each sales dollar. The company requires a monthly ending inventory of raw materials equal to the coming months production requirements. Of raw materials purchases, 50% is paid for in the month of purchase. The remaining 50% is paid for in the following month. e. Wages total 105,000 each month and are paid in the month incurred. f. Budgeted monthly operating expenses total 376,000, of which 45,000 is depreciation and 6,000 is expiration of prepaid insurance (the annual premium of 72,000 is paid on January 1). g. Dividends of 130,000, declared on June 30, will be paid on July 15. h. Old equipment will be sold for 25,200 on July 4. i. On July 13, new equipment will be purchased for 173,000. j. The company maintains a minimum cash balance of 20,000. k. The cash balance on July 1 is 27,000. Required: Prepare a cash budget for July. Give a supporting schedule that details the cash collections from sales.
- Review the completed master budget and answer the following questions: Is Ranger Industries expecting to earn a profit during the next quarter? If so, how much? Does the company need to borrow cash during the quarter? Can it make any repayments? Explain. (Carefully review rows 74 through 80.)Carmichael Corporation is in the process of preparing next years budget. The pro forma income statement for the current year is as follows: Required: 1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year? 2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a 60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)Before the year began, the following static budget was developed for the estimated sales of 50,000. Sales are higher than expected and management needs to revise its budget. Prepare a flexible budget for 100,000 and 110,000 units of sales.
- A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent inflation rate. Listed below are selected items from next years budget before the adjustment. After adjusting for the 3 percent inflation rate, what is the companys total budget for the selected items before taxes for next year? a. 858,150 b. 860,412 c. 810,971 d. 858,971CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2014 and 2015: May 2014 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360.000 November 360,000 December 90,000 January 2015 180.000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale, 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2014 90,000 June 90,000 July 126,000 August 882.000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depreciation charges are 36,000 a month. Miscellaneous expenses arc S2,700 a month. Income tax payments of 63,000 arc due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2014. b. Prepare monthly estimates of the required financing or excess funds that is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 130 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if all financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.CASH BUDGETING Helen Bowers, owner of Helens Fashion Designs, is planning to request a line of credit from her bank. She has estimated the following sales forecasts for the firm for parts of 2016 and 2017. May 2016 180,000 June 180,000 July 360,000 August 540,000 September 720,000 October 360,000 November 360,000 December 90,000 January 2017 180,000 Estimates regarding payments obtained from the credit department are as follows: collected within the month of sale, 10%; collected the month following the sale. 75%; collected the second month following the sale, 15%. Payments for labor and raw materials are made the month after these services were provided. Here are the estimated costs of labor plus raw materials: May 2016 90,000 June 90,000 July 126,000 August 882,000 September 306,000 October 234,000 November 162,000 December 90,000 General and administrative salaries are approximately 27,000 a month. Lease payments under long-term leases are 9,000 a month. Depredation charges are 36,000 a month. Miscellaneous expenses are 2,700 a month. Income tax payments of 63,000 are due in September and December. A progress payment of 180,000 on a new design studio must be paid in October. Cash on hand on July 1 will be 132,000, and a minimum cash balance of 90,000 should be maintained throughout the cash budget period. a. Prepare a monthly cash budget for the last 6 months of 2016. b. Prepare monthly estimates of the required financing or excess fundsthat is, the amount of money Bowers will need to borrow or will have available to invest. c. Now suppose receipts from sales come in uniformly during the month (that is, cash receipts come in at the rate of 1/30 each day), but all outflows must be paid on the 5th. Will this affect the cash budget? That is, will the cash budget you prepared be valid under these assumptions? If not, what could be done to make a valid estimate of the peak financing requirements? No calculations are required, although if you prefer, you can use calculations to illustrate the effects. d. Bowers sales are seasonal; and her company produces on a seasonal basis, just ahead of sales. Without making any calculations, discuss how the companys current and debt ratios would vary during the year if ail financial requirements were met with short-term bank loans. Could changes in these ratios affect the firms ability to obtain bank credit? Explain.
