Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 14, Problem 13E
Exercise 7-13A Preparing a
The accountant for Jean’s Dress Shop prepared the following cash budget. Jean’s desires to maintain a cash cushion of $10,000 at the end of each month. Funds are assumed to be borrowed and repaid on the last day of each month. Interest is charged at the rate of 1 percent per month.
| Cash Budget | July | August | September |
| Section 1: Cash receipts | |||
| Beginning cash balance | $25,000 | $ ? | $ ? |
| Add cash receipts | 90,000 | 100,000 | 120,300 |
| Total cash available (a) | 115,000 | ? | ? |
| Section 2: Cash payments | |||
| For inventory purchases | 82,750 | 70,115 | 87,076 |
| For S&A expenses | 27,250 | 30,280 | 30,716 |
| For interest expense | 0 | ? | ? |
| Total budgeted disbursements (b) | 110,000 | ? | ? |
| Section 3: Financing activities | |||
| Surplus (shortage) | 5,000 | ? | ? |
| Borrowing (repayments) (c) | 5,000 | ? | ? |
| Ending cash balance (a − b + c) | $10,000 | $ 10,000 | $ 10,000 |
Required
- a. Complete the cash budget by filling in the missing amounts. Round all computations to the nearest whole dollar.
- b. Determine the amount of net
cash flows from operating activities Jean’s will report on the third quarter pro forma statement of cash flows. - c. Determine the amount of net cash flows from financing activities Jean’s will report on the third quarter pro forma statement of cash flows.
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b.
a.
Prepare a schedule of cash payments for Fein Company for
the month of August.
OBJECTIVE 3
C.
Exercise 9-45 Cash Budget
The owner of a building supply company has requested a
cash budget for June. After examining the records of the
company, you find the following:
Cash balance on June 1 is R7,360.
b. Actual sales for April and May are as follows:
d.
F.
a.
April
May
Cash sales
R180,000
Credit sales
to 00
R530,000
Total sales
R389,000
c. Credit sales are collected over a three-month period: R
40% in the month of sale, 30% in the second month, and
20% in the third month. The sales collected in the third
month are subject to a 2% late fee, which is paid by those
customers in addition to what they owe. The remaining
sales are uncollectible.
d. Inventory purchases average 64% of a month's total B
sales. Of those purchases, 20% are paid for in the month
of purchase. The remaining 80% are paid for in the
following month.
Salaries and wages total R117,500 per month, including a
R45,000…
Question 2
A. The Rilex and Chill Coffee Shop has requested a cash budget for August. After
examining the records of the company, you find the following:
1.
Cash balance on 1 August is RM43,280.
2. Actual sales for June and July are as follows:
June
RM
Cash sales
Credit sales
Total sales
10,200
26,100
36,300
July
RM
14,700
33,900
48,600
3. Credit sales are collected over three months: 30% in the month of sales, 40% in the
second month, and 25% in the third month. The customers who paid in the month of
sales are qualified for 3% discounts on the amount owed. While the sales collected in the
third month are subject to a 2% late fee, which is paid by those customers in addition to
what they owe. The remaining sales are uncollectible.
4. Inventory purchases average 80% of a month's total sales. Of those purchases, 60% are
paid for in the month of purchase. The remaining 40% is paid for in the following month.
5.
Salaries and wages total RM13,800 per month.
6. The company received interest…
Complete a and b thank you
Chapter 14 Solutions
Survey Of Accounting
Ch. 14 - Prob. 1QCh. 14 - Prob. 2QCh. 14 - 3.What are the three levels of planning? Explain...Ch. 14 - 4.What is the primary factor that distinguishes...Ch. 14 - 5.What is the advantage of using a perpetual...Ch. 14 - Prob. 6QCh. 14 - Prob. 7QCh. 14 - 8. Ken Shilov, manager of the marketing...Ch. 14 - Prob. 9QCh. 14 - 10.What is the normal starting point in developing...
Ch. 14 - 11. How does the level of inventory affect the...Ch. 14 - 12.What are the components of the cash budget?...Ch. 14 - 13.The primary reason for preparing a cash budget...Ch. 14 - 14.What information does the pro forma income...Ch. 14 - 15.How does the pro forma statement of cash flows...Ch. 14 - Exercise 7-1A Budget responsibility Teresa...Ch. 14 - Exercise 7-2A Preparing a sales budget Parliament...Ch. 14 - Prob. 3ECh. 14 - Exercise 7-4A Preparing sales budgets with...Ch. 14 - Exercise 7-5A Determining cash receipts from...Ch. 14 - Exercise 7-6A Using judgment in making a sales...Ch. 14 - Exercise 7-7A Preparing an inventory purchases...Ch. 14 - Exercise 7-8A Preparing a schedule of cash...Ch. 14 - Exercise 7-9A Determining the amount of expected...Ch. 14 - Exercise 7-10A Preparing inventory purchases...Ch. 14 - Exercise 7-11A Preparing a schedule of cash...Ch. 14 - Prob. 12ECh. 14 - Exercise 7-13A Preparing a cash budget The...Ch. 14 - Exercise 7-14A Determining amount to borrow and...Ch. 14 - Prob. 15ECh. 14 - Problem 7-16A Behavioral impact of budgeting...Ch. 14 - Prob. 17PCh. 14 - Problem 7-18A Preparing an inventory purchases...Ch. 14 - Prob. 19PCh. 14 - Problem 7-21A Preparing a cash budget Fayette...Ch. 14 - Prob. 21PCh. 14 - Problem 7-22A Preparing budgets with multiple...Ch. 14 - Problem 7-23A Preparing a master budget for retail...Ch. 14 - ATC 7-1 Business Applications Case Preparing and...Ch. 14 - ATC7-2 Group Assignment Master budget and pro...Ch. 14 - ATC 7-4 Writing Assignment Continuous budgeting...Ch. 14 - Ethical Dilemma Bad budget system or unethical...
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