Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Chapter 8, Problem 25P
1.
To determine
To calculate: Expected cash collections for the month of April, May and June.
Introduction: A budget is a financial statement that includes the
2.
a.
To determine
To prepare: The purchase budget for the month of April, May and June.
b.
To determine
To prepare: Expected cash disbursement for purchases for the month of April, May and June.
3.
To determine
To prepare:
4.
To determine
To prepare: A memorandum on effect of revised assumptions on cash budget.
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Students have asked these similar questions
QUESTION 1
Which of the following statements is false about cash budgets?
O Cash receipts are calculated by adding up all the cash inflows in a given month
O When calculating the cash budget the firm must consider many aspects such as, cash receipts, cash expenses, minimum desired cash balance, and
previous loans.
O Cash receipts include sales, investment income and interest expenses.
All of the above are true
QUESTION 2
Based on the data below calculate the company's combined cost?
Annual requirements = 7500 units
Ordering cost = BD 12
Holding cost BD 0.5
O125
300
45000
150
0000
2:Company B also uses the Analysis of Receivables method. However,
Management has asked us to take a look at the Income Statement Impact if we
change the Uncollectible Percentages for Each Budget of Aging. The aging
schedule looks like the following:
Customer Total Due
Current
1-60 Past Due 61+Past Due
A
1,000
1,000
B
1,500
1,500
800
800
2,000
2,000
E
500
500
Total:
5,800
2,800
1,000
2,000
Aging Category
Current (Not past due)
As Is
Proposed
3%
2%
1- 60 past due
5%
4%
61+ days past due
9%
8%
The balances in the accounts before any adjustments are as follows: current
Sales are $400,000, Allowance for Doubtful Accounts has a Credit balance of
$250, and bad debt expense has a debit balance of $2,000.
What would be the adjusting entry under the As Is Calculation?
What would be the adjusting entry under the Proposed Calculation?
2: Company B also uses the Analysis of Receivables method. However,
Management has asked us to take a look at the Income Statement Impact if we
change the Uncollectible Percentages for Each Budget of Aging. The aging
schedule looks like the following:
Customer Total Due
Curent
1-60 Past Due 61+Past Due
A
1,000
1,000
B
1,500
1,500
C
800
800
2,000
2,000
E
500
500
Total:
5,800
2,800
1,000
2,000
Aging Category
Current (Not past due)
As Is
Proposed
3%
2%
1- 60 past due
61+ days past due
5%
4%
9%
8%
The balances in the accounts before any adjustments are as follows: current
Sales are $400,000, Allowance for Doubtful Accounts has a Credit balance of
$250, and bad debt expense has a debit balance of $2,000.
If the Company changes from the As Is percentages to the Proposed
Percentages, what happens to Net Income on the Income Statement?
Chapter 8 Solutions
Introduction To Managerial Accounting
Ch. 8 - What is a budget? What is budgetary control?Ch. 8 - Prob. 2QCh. 8 - What is meant by the term responsibility...Ch. 8 - What is a master budget? Briefly describe its...Ch. 8 - Why is the sales forecast the starting point in...Ch. 8 - “As a practical matter, planning and control mean...Ch. 8 - Prob. 7QCh. 8 - What is a self-imposed budget? What are the major...Ch. 8 - How can budgeting assist a company in planning its...Ch. 8 - Prob. 10Q
Ch. 8 - The Excel worksheet form that appears below is to...Ch. 8 - The Excel worksheet form that appears below is to...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Prob. 2F15Ch. 8 - Prob. 3F15Ch. 8 - Prob. 4F15Ch. 8 - Morganton Company makes one product and it...Ch. 8 - Prob. 6F15Ch. 8 - Prob. 7F15Ch. 8 - Prob. 8F15Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Prob. 11F15Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Morganton Company makes one product and ¡t...Ch. 8 - Schedule of Expected Cash Collections LOB-2 Silver...Ch. 8 - Down Under Products, Ltd., of Australia has...Ch. 8 - Direct Materials Budget LOB-4 Three grams of musk...Ch. 8 - Direct Labor Budget LOB-5 The production manager...Ch. 8 - Manufacturing Overhead Budget L.08—6 The direct...Ch. 8 - Weller Company’s budgeted unit sales for the...Ch. 8 - Cash Budget LOB—8 Garden Depot is a retailer that...Ch. 8 - Gig Harbor is the wholesale distributor of a small...Ch. 8 - The management of Mecca copy, a photocopying...Ch. 8 - Production and Direct Materials Budgets LO8—,...Ch. 8 - Cash Budget Analysis LOB—8 A cash budget, by...Ch. 8 - Prob. 12ECh. 8 - Schedules of Expected Cash Collections and...Ch. 8 - Sales and Production Budgets L08—2, L08—3 The...Ch. 8 - Direct Labor and Manufacturing Overhead Budgets...Ch. 8 - Direct Materials and Direct Labor Budgets LOB—4,...Ch. 8 - Cash Flows; Budgeted Income Statement and Balance...Ch. 8 - Cash Flows; Budgeted Income Statement and Balance...Ch. 8 - Cash Budget: Income Statement: Balance Sheet...Ch. 8 - Cash Budget; Income Statement: Balance Sheet;...Ch. 8 - Schedules of Expected Cash Collections and...Ch. 8 - Evaluating a Company’s Budget Procedures LOB—1...Ch. 8 - Prob. 23PCh. 8 - Cash Budget with Supporting Schedules L08-2,...Ch. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Completing a Master Budget LOB—2, LO8—4, LO8—7,...Ch. 8 - Prob. 30PCh. 8 - Completing a Master Budget LOB-2, LOB-4, LOB-7,...
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