FUNDAMENTALS OF COST ACCOUNTING
6th Edition
ISBN: 9781266742040
Author: LANEN
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 13, Problem 35E
Estimate Cash Collections
Minot Corporation is preparing its
Required
What is the estimated amount of cash receipts from accounts receivable collections in August?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
1. Calculate the expected cash collections for July.
2. Calculate the expected cash disbursements for merchandise purchases for July.
3. Prepare a cash budget for July.
Assets
Cash
$
12,000
77,500
42,000
Accounts receivable
Inventory
Buildings and equipment, net of depreciation
225,000
$ 356,500
Total assets
Liabilities and Stockholders' Equity
Accounts payable
Note payable
$
78,250
19,300
180,000
Common stock
Retained earnings
78,950
$ 356,500
Total liabilities and stockholders' equity
The company is in the process of preparing a budget for May and has assembled the following data:
a. Sales are budgeted at $231,000 for May. Of these sales, $69,300 will be for cash; the remainder will be credit sales. One-half of a
month's credit sales are collected in the month the sales are made, and the remainder is collected in the following month. All of the
April 30 accounts receivable will be collected in May.
b. Purchases of inventory are expected to total $139,000 during May. These purchases will all be on account. Forty percent of all
purchases are paid for in the month of purchase; the remainder are paid in the following month. All of the April 30 accounts…
Required:
The business needs to have a sense of its future cashflows and therefore requires the preparation of the following:
A schedule of budgeted cash collections for trade receivables (sales on account) for each of the months October to
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
Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter and has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement at December 31, 2021. Is that a reasonable request? If yes, what should these amounts be?
Upon receipt of the budget the team manager has now informed…
Chapter 13 Solutions
FUNDAMENTALS OF COST ACCOUNTING
Ch. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - What role does the master budget play in the...Ch. 13 - What problems might arise if a firm relies solely...Ch. 13 - What is the coordinating role of budgeting?Ch. 13 - Prob. 7RQCh. 13 - Write out the inventory equation that is used to...Ch. 13 - What makes creating budgets for marketing and...Ch. 13 - Prob. 10RQ
Ch. 13 - Preparing a budget is a waste of time. The...Ch. 13 - In the Business Application feature, Using the...Ch. 13 - Prob. 13CADQCh. 13 - Would the budgeting plans for a company that uses...Ch. 13 - Government agencies are limited in spending by...Ch. 13 - What is the difference between the planning and...Ch. 13 - When might the master budget start with a forecast...Ch. 13 - In some organizations (firms, universities,...Ch. 13 - Our cash budget shows a surplus for the quarter,...Ch. 13 - Your boss asks for your estimate on the costs of a...Ch. 13 - The chapter identified four techniques used for...Ch. 13 - Role of Budgets and Plans
Cosmic Corporation is a...Ch. 13 - Human Element in Budgeting
Roller Partners is a...Ch. 13 - Estimate Sales Revenues Stubs-R-Us is a local...Ch. 13 - Estimate Sales Revenues Friendly Financial has 160...Ch. 13 - Estimate Sales Revenues Larson, Inc., manufactures...Ch. 13 - Estimate Production Levels Offenbach Son has just...Ch. 13 - Estimate Sales Levels Using Production Budgets...Ch. 13 - Estimate Inventory Levels Using Production Budgets...Ch. 13 - Estimate Production Levels: Capacity Constraints...Ch. 13 - Prob. 31ECh. 13 - Estimate Purchases and Cash Disbursements Midland...Ch. 13 - Estimate Purchases and Cash Disbursements Lakeside...Ch. 13 - Estimate Cash Disbursements Cascade, Ltd., a...Ch. 13 - Estimate Cash Collections Minot Corporation is...Ch. 13 - Estimate Cash Collections Ewing Company is...Ch. 13 - Estimate Cash Receipts Scare-2-B-U (S2BU)...Ch. 13 - Estimate Cash Receipts Varmit-B-Gone is a pest...Ch. 13 - Prepare Budgeted Financial Statements
Refer to the...Ch. 13 - Prepare Budgeted Financial Statements Cycle-1 is a...Ch. 13 - Prepare Budgeted Financial Statements Carreras Caf...Ch. 13 - Budgeting in a Service Organization Executive...Ch. 13 - Prob. 43ECh. 13 - Prob. 44ECh. 13 - Prob. 45ECh. 13 - Prob. 46ECh. 13 - Sensitivity Analysis Sanjanas Sweet Shoppe...Ch. 13 - Sensitivity Analysis Classic Limo, Inc., provides...Ch. 13 - Prob. 49ECh. 13 - Prob. 50ECh. 13 - Prepare Budgeted Financial Statements The...Ch. 13 - Prob. 52PCh. 13 - Prepare Budgeted Financial Statements Gulf States...Ch. 13 - Prob. 54PCh. 13 - Prob. 55PCh. 13 - Prepare a Production Budget Haggstrom, Inc.,...Ch. 13 - Sales Expense Budget SPU, Ltd., has just received...Ch. 13 - Budgeted Purchases and Cash Flows Mast Corporation...Ch. 13 - Prepare Budgeted Financial Statements HomeSuites...Ch. 13 - Prob. 60PCh. 13 - Comprehensive Budget Plan Brighton, Inc.,...Ch. 13 - Comprehensive Budget Plan Panther Corporation...Ch. 13 - Budgeted Financial Statements in a Retail...Ch. 13 - Cash Budgets and Sensitivity Analysis in a Retail...Ch. 13 - Prob. 66IC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The Express Company is preparing its cash budget for the month of June. The following information is available concerning its inventories: Inventories at beginning of June Estimated purchases of June Estimated cost of goods sold for June Estimated payments in June for purchases in May Estimated payments in June for purchases prior to May Estimated payments in June for purchases in June $ 83,500 362,000 369,500 88,250 47,000 B0 What are the estimated cash disbursements for inventories in June? Multple Choice $405,840. O $432,450.arrow_forwardRequired: (a) The business needs to have a sense of its future cash inflows and outflows for the quarter and therefore requires the preparation of the following: ▪ A schedule of budgeted cash collections for trade receivables for each of the months January to March. ▪ A schedule of expected cash disbursements for accounts payable for each of the months January to March. ▪ A cash budget, with a total column, for the quarter ending March 31, 2023, 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. (b) Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter ending March 31, 2023 and has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable request? If yes, what should these amounts be? (c) Upon receipt of the budget, the team manager,…arrow_forwardCalculate the cash receipts $ for the month of September. Calculate the material purchase $ for the appropriate months. Calculate the accounts payable payments for the month September. Calculate the accounts payable balance on the Balance Sheet for the month September. Prepare a cash budget for the month of September.arrow_forward
- Required: (a)The business needs to have a sense of its future cash inflows and outflows for the quarter and therefore requires the preparation of the following: A schedule of budgeted cash collections for trade receivables for each of the months January to March. A schedule of expected cash disbursements for accounts payable for each of the months January to March.arrow_forwardFrancis and Company has planned a cash budget for the third quarter of 2004. The cash balance on July 1, 2004 is expected to be an overdraft of $s82,000. Extracts from the sales and purchases budgets are as follows: Budgeted Budgeted Month Sales Purchases May June July August September $800,000 $900,000 $750,000 $650,000 $800,000 $600,000 $550,000 $450,000 $500,000 All sales are on credit and an analysis of the records shows that debtors settle according to the following pattern, in accordance with the credit terms 5/30, i) n90: 50% in the month of sale 30% in the month following sale 20% the following month All purchases are on credit and past experience shows that 80% are settled in the month of purchase in order to take advantage of a 10% prompt settlement ii) discount. The balance will be disbursed in the month after purchase. The credit terms of the suppliers - 10/30, n60. iii) Wages and salaries are expected to be $1,800,000 per annum and are paid monthly. iv) Fixed operating…arrow_forwardBuilt-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow: July $64,000 August $80,000 September $ 48,000 Budgeted sales Budgeted cash payments for Direct materials 16,160 4,040 20,200 13,440 3,360 16,800 13,760 3,440 17,200 Direct labor Factory overhead Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,000 in accounts receivable; and a $5,000 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month- end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office…arrow_forward
- Required:(a) The business needs to have a sense of its future cash flows and therefore requires thepreparation of the following:▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each ofthe months July to September. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account)for each of the months July to September.▪ A cash budget, with a total column, for the quarter ending September 30, 2022, showing theexpected cash receipts and payments for each month and the ending cash balance for eachof the three months, given that no financing activities took place.arrow_forwardThe following information was taken from Concord Corporation cash budget for the month of July: Beginning cash balance $100000 Cash receipts 96000 Cash disbursements 136000 If the company has a policy of maintaining an end of the month cash balance of $100000, the amount the company would have to borrow isarrow_forwardRequired: (a) The business needs to have a sense of its future cash flows and therefore requires the preparation of the following: ▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each of the months from January to March. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account) for each of the months from January to March. ▪ A cash budget, with a total column, for the quarter ending March 31, 2022, 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.arrow_forward
- Required:(a) The business needs to have a sense of its future cash flows and therefore requires thepreparation of the following:▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each ofthe months January to March. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account)for each of the months January to March. ▪ A cash budget, with a total column, for the quarter ending March 31, 2022, showing theexpected cash receipts and payments for each month and the ending cash balance for eachof the three months, given that no financing activities took place.arrow_forwardFrom the attached photo answer the following: 1. What is the sales collection schedule for the six (6) months showing the accounts receivable at the end of the six months ending June 2021.2.What is he purchase payment schedule for the six (6) months showing discounts received and accounts payable at the end of the six months ending June 2021.3. What is the cash budget including a total column for the three (3) months ending June 2021 (April to June 2021).arrow_forwardRequired: (a) The business needs to have a sense of its future cash flows and therefore requires the preparation of the following:▪ A schedule of budgeted cash collections for trade receivables (sales on account) for each of the months January to March. ▪ A schedule of expected cash disbursements for accounts payable (purchases on account)for each of the months January to March. ▪ A cash budget, with a total column, for the quarter ending March 31, 2022, 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. (b) Another team member who is preparing the Budgeted Balance Sheet for the business for the same quarter ending March 31, 2022 and has asked you to furnish him with the figures for the expected trade receivables and payables to be included in the statement. Is that a reasonable request? If yes, what should these amounts be? (c) Upon receipt of the budget, the team…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
The management of receivables Introduction - ACCA Financial Management (FM); Author: OpenTuition;https://www.youtube.com/watch?v=tLmePnbC3ZQ;License: Standard YouTube License, CC-BY