Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 8, Problem 1E
At the beginning of the school year, Craig Kovar decided to prepare a
- a. Prepare a cash budget for September, October, November, and December.
- b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?
- c. What are the budget implications for Craig Kovar?
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At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for
the months of September, October, November, and December. The budget must plan for
enough cash on December 31 to pay the spring semester tuition, which is the same as the
fall tuition. The following information relates to the budget: \table[[Cash balance,
September 1 (from a summer job), $8, 430 At the beginning of the school year, Katherine
Malloy decided to prepare a cash budget for the months of September, October,
November, and December. The budget must plan for enough cash on December 31 to pay
the spring semester tuition, which is the same as the fall tuition. The following information
relates to the budget: \table[[Cash balance, September 1 (from a summer job), $8,430
At the beginning of the school year, Craig Kovar decided to prepare a cash budget for the monthsof September, October, November, and December. The budget must plan for enough cash on
December 31 to pay the spring semester tuition, which is the same as the fall tuition. The followinginformation relates to the budget:
Cash balance, September 1 (from a summer job) . . . . . . . . . . . . . . . . . $9,250Purchase season football tickets in September . . . . . . . . . . . . . . . . . . . . . . 160Additional entertainment for each month . . . . . . . . . . . . . . . . . .. . . . . . . . . 250Pay fall semester tuition in September . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,800Pay rent at the beginning of each month . . . . . . . . . . . . . . . . . . . . . . . . . . . 600Pay for food each month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550Pay apartment deposit on September 2 (to be returned December 15) . 600Part-time job earnings each…
1. At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
Cash balance, September 1 (from a summer job)
$7,060
Chapter 8 Solutions
Managerial Accounting
Ch. 8 - Prob. 1DQCh. 8 - Briefly describe the type of human behavior...Ch. 8 - What behavioral problems are associated with...Ch. 8 - What behavioral problems are associated with...Ch. 8 - Under what circumstances would a static budget be...Ch. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Why should the timing of direct materials...Ch. 8 - Prob. 9DQCh. 8 - Give an example of how the capital expenditures...
Ch. 8 - At the beginning of the period, the Fabricating...Ch. 8 - Pasadena Candle Inc. projected sales of 800,000...Ch. 8 - Pasadena Candle Inc. budgeted production of...Ch. 8 - Pasadena Candle Inc. budgeted production of...Ch. 8 - Prob. 5BECh. 8 - Cash budget Pasadena Candle Inc. pays 40% of its...Ch. 8 - At the beginning of the school year, Craig Kovar...Ch. 8 - Digital Solutions Inc. uses flexible budgets that...Ch. 8 - Static budget versus flexible budget The...Ch. 8 - Prob. 4ECh. 8 - Production budget Healthy Measures Inc. produces a...Ch. 8 - Sales and production budgets Sonic Inc....Ch. 8 - Professional foes earned budget for a service...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Direct labor cost budget Ace Racket Company...Ch. 8 - Prob. 13ECh. 8 - Factory overhead cost budget Sweet Tooth Candy...Ch. 8 - Cost of goods sold budget Delaware Chemical...Ch. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Schedule of cash payments for service company...Ch. 8 - Prob. 20ECh. 8 - Capital expenditures budget On January 1, 20Y6,...Ch. 8 - Prob. 1PACh. 8 - Sales, production, direct materials purchases, and...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Cash budget The controller of Bridgeport...Ch. 8 - Budgeted income statement and balance sheet As a...Ch. 8 - Prob. 1PBCh. 8 - Sales, production, direct materials purchases, and...Ch. 8 - Budgeted income statement and supporting budgets...Ch. 8 - Prob. 4PBCh. 8 - Cash budget The controller of Mercury Shoes Inc....Ch. 8 - Budgeted income statement and balance sheet As a...Ch. 8 - Analyze Johnson Stores staffing budget for...Ch. 8 - Prob. 2MADCh. 8 - Prob. 3MADCh. 8 - Prob. 4MADCh. 8 - Ethics in Action The director of marketing for...Ch. 8 - Prob. 3TIFCh. 8 - Evaluating the budgeting system in a service...Ch. 8 - Static budget for a service company A hank manager...Ch. 8 - Objectives of the master budget Dominos Pizza LLC...Ch. 8 - When compared to static budgets, flexible budgets:...Ch. 8 - Prob. 2CMACh. 8 - Ming Company has budgeted sales at 6,300 units for...Ch. 8 - Krouse Company produces two products, forged...
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- 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_forwardIn an attempt to better understand RR’s cash position, Johnson developed a cash budget for the first 2 months of the year. She has the figures for the other months, but they are not shown. After looking at the cash budget, answer the following questions: What does the cash budget show regarding the target cash level? Should depreciation expense be explicitly included in the cash budget? Why or why not? What are some other potential cash inflows besides collections? How can interest earned or paid on short-term securities or loans be incorporated in the cash budget? In her preliminary cash budget, Johnson has assumed that all sales are collected and thus that RR has no bad debts. Is this realistic? If not, how would bad debts be dealt with in a cash budgeting sense? (Hint: Bad debts will affect collections but not purchases.)arrow_forwardowa Imaging Center provided the financial information in Exhibit 5.15 below. Prepare a cash budget for the quarter ending March 20X1. For Blackboard you will enter your ENDING cash balance for the months of January 20X1, February 20X1, March 20X1, and the Quarter ending March 20X1. I want you to submit your work for this problem by email so I can review the entire document. Exhibit 5-15 Iowa Imaging Center Givens Revenues and Expenses Patient Revenues, 20X0 Estimated Patient Revenues, 20X1 Given 1 October $4,000,000 Given 2 January $4,300,000 November $4,200,000 February $4,350,000 December $4,300,000 March $4,400,000 Other Revenues, 20X1 Estimated Cash Outflows, 20X1a Given 3 January $90,000 Given 4 January $4,250,000…arrow_forward
- At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $7,180 Purchase season football tickets in September 100 Additional entertainment for each month 250 Pay fall semester tuition in September 3,900 Pay rent at the beginning of each month 350 Pay for food each month 200 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 890 a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign. b. Are the four monthly budgets that are presented prepared as static…arrow_forwardAt the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $7,650 Purchase season football tickets in September 100 Additional entertainment for each month 270 Pay fall semester tuition in September 4,100 Pay rent at the beginning of each month 370 Pay for food each month 210 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 950 Question Content Area a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign. KATHERINE MALLOYCash BudgetFor the Four Months…arrow_forwardAt the beginning of the school year, Craig Kovar decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job): 6,520 Purchase season football tickets in September: 90 Additional entertainment for each month: 230 Pay fall semester tuition in September: 3,500 Pay rent at the beginning of each month: 320 Pay for food each month: 180 Pay apartment deposit on September 2 (to be returned December 15): 500 Part-time job earnings each month: 810 Prepare a cash budget for September, October, November, and December. Use the minus sign to indicate cash outflows, a decease in cash or cash payments. Refer to the picture below for the template.arrow_forward
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- a. Prepare a revenue budget for the upcoming academic year.b. Determine the number of staff needed to cover classes.c. Assume there is a shortage of full-time academic staff. List at least five actions thatSouth Hampton might take to accommodate the growing student numbers.arrow_forwardAt the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $6,540 Purchase season football tickets in September 90 Additional entertainment for each month 230 Pay fall semester tuition in September 3,500 Pay rent at the beginning of each month 320 Pay for food each month 180 Pay apartment deposit on September 2 (to be returned December 15) 500 Part-time job earnings each month (net of taxes) 810 a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign. KATHERINE MALLOY Cash Budget For the Four Months Ending December…arrow_forwardAt the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget: Cash balance, September 1 (from a summer job) $6,000 Purchase season football tickets in September 150 Additional entertainment for each month 250 Pay fall semester tuition in September 3,500 Pay rent at the beginning of each month 450 Pay for food each month 400 Pay apartment deposit on September 2 (to be returned December 15) 450 Part-time job earnings each month (net of taxes) 1,300 Question Content Area a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign. Priscilla WescottCash BudgetFor the Four Months Ending…arrow_forward
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