Managerial Accounting
16th Edition
ISBN: 9781259995484
Author: Ray Garrison
Publisher: MCGRAW-HILL HIGHER EDUCATION
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 8, Problem 11E
EXERCISE 8-11
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter.
Quarter
| 1 | 2 | 3 | 4 | Year | |
| Cash balance, beginning | $ 6 | $ ? | $ ? | $ ? | $ ? |
| Add collections from customers | ? | ? |
96 |
? |
323 |
| — | — | ||||
| Total cash available | 71 | ? |
? |
? |
? |
| Less disbursements: | |||||
| Purchase of inventory | 35 | 45 | ? | 35 | ? |
| Selling and administrative expenses | 7 | 30 | 30 | ? | 113 |
| Equipment purchases | 8 | 8 | 10 | ? | 36 |
| Dividends | 2 | 2 | 2 | 2 | ? |
| — | — | — | |||
| Total disbursements | ? | 85 |
? |
? |
? |
| Excess (deficiency) of cash available | |||||
| over disbursements | (2) | ? |
11 |
? |
? |
| Financing: | |||||
| Borrowings | ? | 15 | - | — | ? |
| Repayments (including Interest)* | ____-_ | - | (?) | (17) | (?) |
| Total financing | ? | ? | ? | _? | ? |
| Cash balance, ending | ... $ ? | $ ? |
$ ? |
$ ? |
$ ? |
'Interest will total $ 1,000 (or the year.
Required:
Fill in the missing amounts in the above table.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Exercise 7 (Cash Budget Analysis)
A cash budget, by quarters, is given below for a retail company (000 omitted).
The company requires a minimum cash balance of P5,000 to start each quarter.
Quarter
3
4
Year
Cash balance, beginning
P 9
P ?
P ?
P ?
P ?
125
391
Add collections from customers
Total cash available
85
_?
Less disbursements:
Purchase of inventory.
40
58
32
?
Operating expenses
42
54
180
Equipment purchases
10
8.
36
Dividends
Total disbursements
110
Excess (deficiency) of cash available
over disbursements
(3)
30
Financing:
Borrowings
? 20
?
Repayments (including interest)*
(?)
(7)
(?)
1.
Total financing
Cash balance, ending
P ? P ?
P 2
P 2
P 2
* Interest will total P4,000 for the year.
Required:
Fill in the missing amounts in the table above.
8
Exercise 7 (Cash Budget Analysis)
A cash budget, by quarters, is given below for a retail company. (000 omitted).
The company requires a minimum cash balance of P5,000 to start each quarter.
Quarter
1
2
3
4
Year
Cashbalance,beginning..
P9
P ?
P ?
P?
P?
Add collectionsfromcustomers....
?
?
125
?
391
Totalcash available...
85
?
?
Less disbursements:
Purchaseofinventory.
40
58
?
32
Operatingexpenses.
42
54
?
180
Equipmentpurchases..
10
8
8
36
Dividends...
2
2
2
2
?
Totaldisbursement..
110
?
?
?
Excess (deficiency) of cash available
Ordisbursements....
(3)
30
?
?
Financing:
Borrowings..
?
20
Repayments (including interest)*..
(?)
(7)
(?)
Total financing...
?
?
(?)
(?)
Cash balance, ending....
P ?
P ?
P ?
P ?
P?
*Interest will total P4, 000 for the year.
Required:
Fill in the missing amounts in the table above.
Exercise 7 (Cash Budget Analysis)
A cash budget, by quarters, is given below for a retail company. (000 omitted).
The company requires a minimum cash balance of P5,000 to start each quarter.
Quarter
1 2 3 4 Year
Cash balance, beginning..................... P9 P? P? P? P?
Add collections from customers….. ? ? 125 ? 391
Total cash available………………. 85 ? ? ? ?
Less disbursements:
Purchase of inventory….................. 40 58 ? 32 ?
Operating expenses…………... ? 42 54 ? 180
Equipment purchases…................ 10 8 8 ? 36
Dividends…………………….. 2 2 2 2 ?
Total disbursement………………..…
Chapter 8 Solutions
Managerial Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - 8-4 What is a master budget? Briefly describe its...Ch. 8 - 8—5 Why is the sales forecast the starting point...Ch. 8 - Prob. 6QCh. 8 - 8-7 Why is it a good idea to create a ‘"Budgeting...Ch. 8 - 8-8 What is a self-imposed budget? What are the...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 -
The Excel worksheet form that appears below is to...Ch. 8 - Prob. 2AECh. 8 - Prob. 1F15Ch. 8 - Prob. 2F15Ch. 8 - Prob. 3F15Ch. 8 - Prob. 4F15Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Prob. 11F15Ch. 8 - Prob. 12F15Ch. 8 - Prob. 13F15Ch. 8 - Prob. 14F15Ch. 8 - Prob. 15F15Ch. 8 - EXERCISE 8-1 Schedule of Expected Cash Collections...Ch. 8 - Prob. 2ECh. 8 - EXERCISE 8-3 Direct Materials Budget LOW Three...Ch. 8 -
EXERCISE 8-4 Direct Labor Budget...Ch. 8 -
EXERCISE 8-5 Manufacturing Overhead Budget...Ch. 8 -
...Ch. 8 -
The company's beginning cash balance for the...Ch. 8 - EXERCISE 8-8 Budgeted Income Statement LO8-9 Gig...Ch. 8 - EXERCISE 8-9 Budgeted Balance Sheet LO8-10 The...Ch. 8 -
EXERCISE 8-10 Production and Direct Materials...Ch. 8 - EXERCISE 8-11 Cash Budget Analysis LOB-8 A cash...Ch. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 -
EXERCISE 8-14 Sales and Production Budgets LO8-2,...Ch. 8 - EXERCISE 8-15 Direct Labor and Manufacturing...Ch. 8 - EXERCISE 8-16 Direct Materials and Direct Labor...Ch. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - PROBLEM 8-19 Cash Budget: Income Statement:...Ch. 8 -
PROBLEM 8-20 Cash Budget; Income Statement;...Ch. 8 - Prob. 21PCh. 8 -
PROBLEM 8-22 Evaluating a Company’s Budget...Ch. 8 - PROBLEM 8—23 schedule or Expected cash...Ch. 8 - PROBLEM 8-24 Cash Budget with Supporting Schedules...Ch. 8 - PROBLEM B-25 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-26 Behavioral Aspects of Budgeting:...Ch. 8 - (
$
55,000
$ 55, 000
...Ch. 8 -
PROBLEM 8-28 Cash Budget with Supporting...Ch. 8 - PROBLEM 8-29 Completing a Master Budget LO8-2,...Ch. 8 - PROBLEM 8-30 Integration of the Sales, Production,...Ch. 8 - Prob. 31PCh. 8 -
CASE 8-32 Evaluatinga Company’s Budget Procedures...Ch. 8 - CASE 8-33 Master Budget with Supporting Schedules...
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
- A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?arrow_forwardProblem 5 Prepare a cash budget by month for the month quarter ending September 30, 2009, from the following data obtained from the Peninsula Co. Support your solution with schedules of estimated receipts & payments. August P 16,000 150,000 120,000 18,000 2,000 July P 12,000 110.000 90,000 Operating Expenses 15,000 September P 18,000 120,000 110,000 16,000 Cash sales Credit sales Purchases Interest expense Credit are collected 50% in the month of sales. 40% in the month following, 8% in the second month following and 2% uncollectible. Credit sales for May and June are expected to be P100,000 and P90,000 respectively. Purchases of merchandise, all on account are paid 60% in the month of purchase and 40% in the month fallowing. Purchase for June are estimated at 80,000 are paid in the month incurred. Cash balance on June 30, 2009 is P27,000.arrow_forwardCash Budget Analysis A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. Required: Fill in the missing amounts in the above table.arrow_forward
- 2.1arrow_forward-/1 Question 11 View Policies Current Attempt in Progress A company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder is never collected. Budgeted credit sales were: ort $310000 January 166000 February 490000 March The cash inflow in the month of March is expected to be O $294000. O $359300 O $240300. O $343800. hp ho l t 44 12 Su prt sc delete home enc & 7 backspace lock T Y P home K enter 4 M N Iarrow_forwardExercise 1 (Schedule of expected Cash Collection) Peak sales for Mideast Products, Inc., occur in August. The company's sales budget for the third quarter showing these peak sales is given below: July August September Total Budgeted sales ................ P600,000 P900,000 P500,000 P2,000.000 From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, that another 70% is collected in the month following sale, and that the remaining 10% is collected in the second month following sale. Bad debts are negligible and can be ignored. May sales totaled P430,000 and June sales totaled P540,000. Required: Prepare a schedule of expected cash collections from sales, by month and in total, for the third quarter. Assume that the company will prepare a budgeted statement of financial position as of September 30. Compute the accounts receivable as of that date.arrow_forward
- Question number 4,5,6arrow_forward2. Cash Receipts Budget and Accounts Receivable Aging Schedule Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the following sales: Quarter 1 $4,620,000 Quarter 2 5,610,000 Quarter 3 1,190,000 Quarter 4 7,840,000 In Shalimar’s experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are $5,640,000 and for the fourth quarter of the current year are $7,320,000. Required: Question Content Area 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. Quarter Cash Sales Credit Sales 3, current year $fill in the blank 0b62a1fb700f07d_1 $fill in the blank…arrow_forwardQuestion 4 Part I Advent used their historic collection percentages to budget for sales revenue for the first quarter of 2020as follows: January $100,000 February $175,000 March $250,000The company anticipates that approximately 80% of sales each month will be on credit. The historic percentages on collection are: 50% in the month of sale 40% in the month following the sale 10% two months following the sale Required: Prepare a monthly cash collections/receipts budget for the first quarter of 2020.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Financial & Managerial AccountingAccountingISBN:9781337119207Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Responsibility Accounting| Responsibility Centers and Segments| US CMA Part 1| US CMA course; Master Budget and Responsibility Accounting-Intro to Managerial Accounting- Su. 2013-Prof. Gershberg; Author: Mera Skill; Rutgers Accounting Web;https://www.youtube.com/watch?v=SYQ4u1BP24g;License: Standard YouTube License, CC-BY