Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 22, Problem P22.54BPGB
Preparing a comprehensive budgeting problem−merchandising company
Learning Objective 5, 6
6. Total cash pmts. $88,200
7. NI $300
Belton Printing Company of Baltimore has applied for a loan. Its bank has requested a
| BELTON PRINTING COMPANYBalance SheetMarch 31, 2018 | ||
| Assets | ||
| Current Assets: | ||
| Cash | $51,100 | |
| 13,600 | ||
| Merchandise Inventory | 12,000 | |
| Total Current Assets | $76,700 | |
| Property, Plant, and Equipment: | ||
| Equipment and Fixtures | 81,100 | |
| Less: Accumulated Depreciation | (12,400) | 68,700 |
| Total Assets | $145,400 | |
| Liabilities | ||
| Current Liabilities: | ||
| Accounts Payable | $8,300 | |
| Common Stock, no par | $35,000 | |
| 102,100 | ||
| Total Stockholders’ Equity | 137,100 | |
| Total Liabilities and Stockholders’ Equity | $145,400 | |
As Belton Printings controller, you have assembled the following additional information:
a. April dividends of $7,000 were declared and paid.
b. April capital expenditures of $17,000 budgeted for cash purchase of equipment.
c. April depreciation expense, $800.
d. Cost of goods sold, 55% of sales.
e. Desired ending inventory for April is $24.800.
f. April selling and administrative expenses includes salaries of $29,000, 20% of which will be paid in cash and the remainder paid next month.
g. Additional April selling and administrative expenses also include miscellaneous expenses of 10% of sales, all paid in April.
h. April budgeted sales, $86,000, 80% collected in April and 20% in May.
i. April cash payments of March 31 liabilities incurred for March purchases of inventory, $8,300.
j. April purchases of inventory, $22,900 for cash and $37,200 on account. Half the credit purchases will be paid in April and half in May.
Requirements
1. Prepare the sales budget for April.
2. Prepare the inventory, purchases, and cost of goods sold budget for April.
3. Prepare the selling and administrative expense budget for April.
4. Prepare the schedule of cash receipts from customers for April.
5. Prepare the schedule of cash payments for selling and administrative expenses for April.
6. Prepare the
7. Prepare the budgeted income statement for April.
8. Prepare the budgeted balance sheet at April 30, 2018.
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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…
Completing a comprehensive budgeting problem—merchandising Company
Alliance Printing Supply of Baltimore has applied for a loan. Its bank has requested a budgeted income statement for April 2018 and a balance sheet at April 30, 2018. The March 31, 2018, balance sheet follows:
As Alliance Printing Supply’s controller, you have assembled the following additional information:
April dividends of $7,000 were declared and paid.
April capital expenditures of $16,300 budgeted for cash purchase of equipment.
April depreciation expense, $1,000.
Cost of goods sold, 40% of sales.
Desired ending inventory for April is $22,400.
April selling and administrative expenses include salaries of $37,000, 30% of which will be paid in cash and the remainder paid next month.
Additional April selling and administrative expenses also include miscellaneous expenses of 10% of sales, all paid in April.
April budgeted sales, $89,000, 80% collected in April and 20°/0 in May.
April cash payments of March 31…
Question-4
REQUIRED
Use the information provided by Empire Traders to prepare the following for March and
April 2024:
4.1 Debtors Collection Schedule
4.2 Cash Budget.
INFORMATION
The following information was provided by Empire Traders:
1. Empire Traders expects to have a favourable bank balance of R60 000 on 28 February 2024.
2. Budgeted sales figures for 2024 are as follows:
3.
4.
5.
6.
7.
Cash sales
Credit sales
9.
January
R320 000
R370 000
Total purchases
February
R370 000
R390 000
March
R310 000
R320 000
Thirty percent (30%) of the cash sales is to informal traders who are entitled to a discount of 10%.
Collections from debtors are usually as follows:
• 80% is collected in the month after the sale.
20% is collected two months after the sale.
Purchases of inventory are expected to be as follows:
January
February
R410 000
R460 000
April
R250 000
R300 000
March
R400 000
April
R380 000
Sixty percent (60%) of the purchases is for cash to take advantage of a discount of 15%. The balance…
Chapter 22 Solutions
Horngren's Accounting (12th Edition)
Ch. 22 - Prob. 1QCCh. 22 - A company prepares a five-year budget. This budget...Ch. 22 - Which of the following is the cornerstone of the...Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - Suppose Iron City manufactures cast iron skillets....Ch. 22 - The budgeted income statement is part of which...Ch. 22 - Prob. 9QCCh. 22 - Suppose Mallcentral sells 1,000 hardcover books...
Ch. 22 - Suppose Mallcentral sells 1,000 hardcover books...Ch. 22 - The budgeted balance sheet is part of which...Ch. 22 - Information technology has made it easier for...Ch. 22 - Prob. 1RQCh. 22 - Prob. 2RQCh. 22 - How is benchmarking beneficial?Ch. 22 - What is budgetary slack? Why might managers try to...Ch. 22 - Explain the difference between strategic and...Ch. 22 - Explain the difference between static and flexible...Ch. 22 - What is a master budget?Ch. 22 - In a manufacturing company, what are the three...Ch. 22 - Why is the sales budget considered the cornerstone...Ch. 22 - Prob. 10RQCh. 22 - What is the formula used to determine the amount...Ch. 22 - What are the two types of manufacturing overhead?...Ch. 22 - How is the predetermined overhead allocation rate...Ch. 22 - What is the capital expenditures budget?Ch. 22 - What are the three sections of the cash budget?Ch. 22 - Prob. 16RQCh. 22 - How does the master budget for a merchandising...Ch. 22 - Prob. 18RQCh. 22 - Prob. 19RQCh. 22 - Prob. 20RQCh. 22 - Budgeting benefits Learning Objective 1 List the...Ch. 22 - S22-2 Budgeting types
Learning Objective...Ch. 22 - Prob. S22.3SECh. 22 - S22-4 Preparing an operating budget—production...Ch. 22 - Prob. S22.5SECh. 22 - Prob. S22.6SECh. 22 - Prob. S22.7SECh. 22 - Prob. S22.8SECh. 22 - Prob. S22.9SECh. 22 - Prob. S22.10SECh. 22 - Prob. S22.11SECh. 22 - S22-12 Understanding the components of the master...Ch. 22 - S22-13 Preparing an operating budget—sales...Ch. 22 - Prob. S22.14SECh. 22 - Prob. S22.15SECh. 22 - Prob. S22.16SECh. 22 - Prob. S22.17SECh. 22 - Prob. S22.18SECh. 22 - Prob. S22.19SECh. 22 - Prob. S22.20SECh. 22 - Prob. E22.21ECh. 22 - Prob. E22.22ECh. 22 - Prob. E22.23ECh. 22 - Preparing an operating budget—direct materials,...Ch. 22 - E22-25 Preparing an operating budget—cost of goods...Ch. 22 - Prob. E22.26ECh. 22 - Preparing a financial budget—schedule of cash...Ch. 22 - Prob. E22.28ECh. 22 - E22-29 Preparing the financial budget-cash...Ch. 22 - Preparing the financial budget—budgeted balance...Ch. 22 - Prob. E22.31ECh. 22 - Prob. E22.32ECh. 22 - Prob. E22.33ECh. 22 - Prob. E22.34ECh. 22 - E22-35 Preparing a financial budget—cash...Ch. 22 - Prob. E22.36ECh. 22 - Using sensitivity analysis Learning Objective 7 1....Ch. 22 - Preparing an operating budget—sales, production,...Ch. 22 - Prob. P22.39APGACh. 22 - Preparing a financial budgetbudgeted income...Ch. 22 - Completing a comprehensive budgeting...Ch. 22 - Prob. P22.42APGACh. 22 - Prob. P22.43APGACh. 22 - P22-44A Preparing a financial budget—budgeted...Ch. 22 - Prob. P22.45APGACh. 22 - Prob. P22.46APGACh. 22 - Prob. P22.47BPGBCh. 22 - Prob. P22.48BPGBCh. 22 - Prob. P22.49BPGBCh. 22 - Prob. P22.50BPGBCh. 22 - Prob. P22.51BPGBCh. 22 - Prob. P22.52BPGBCh. 22 - Prob. P22.53BPGBCh. 22 - Preparing a comprehensive budgeting...Ch. 22 - Prob. P22.55BPGBCh. 22 - Using Excel for to prepare an operating budget...Ch. 22 - Prob. P22.57CPCh. 22 - Prob. 22.1TIATCCh. 22 - Prob. 22.1DCCh. 22 - Prob. 22.1EICh. 22 - Prob. 22.1FC
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