Budgeted S&A Expenses Salary expenses Sales commissions, 5% of sales Insurance expenses Rent Depreciation on equipment Utilities Total operating expenses Schedule of Cash Payments for S&A Expenses Salary Expenses 100% of prior month sales commissions Insurance Expense Rent 100% of Prior months utilities expenses Total payments foe S&A expenses The amount of cash paid for S&A expenses during the month of November is: October November December 10,000 5,000 2,000 2,400 1,500 1,100 22,000 ? 5,100 2,000 ? 1,200 10,500 5,500 2,000 2,499 1,500 1,300 23,200 10,500 ? 2,000 ? ? ? 11,000 5,300 2,000 2,400 1,500 1,500 23,700 ? ? 2,000 2,400 ? ?

Budgeted S&A Expenses Salary expenses Sales commissions, 5% of sales Insurance expenses Rent Depreciation on equipment Utilities Total operating expenses Schedule of Cash Payments for S&A Expenses Salary Expenses 100% of prior month sales commissions Insurance Expense Rent 100% of Prior months utilities expenses Total payments foe S&A expenses The amount of cash paid for S&A expenses during the month of November is: October November December 10,000 5,000 2,000 2,400 1,500 1,100 22,000 ? 5,100 2,000 ? 1,200 10,500 5,500 2,000 2,499 1,500 1,300 23,200 10,500 ? 2,000 ? ? ? 11,000 5,300 2,000 2,400 1,500 1,500 23,700 ? ? 2,000 2,400 ? ?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 20E

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Relevant data from the operating budget of The Framers are: Other data: Capital assets were sold in quarter 1 and $8,000 was collected in quarter 1 and $500 collected in quarter 2. Dividends of $500 will be paid in May The beginning cash balance was $50,000 and a required minimum cash balance is $10,000. Prepare a cash budget for the first two quarters of the year.
3. The Uthred Company, a merchandising firm, has planned the following sales for the next four months: March $50,000 Аpril $70,000 Мay $90,000 June July $90,000 Total budgeted Sales $60,000 Sales are made 60% on account and 40% cash. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale 60% • First month following month of sale . • Second month following month of sale • Uncollectible 28% 10% 2% Uthred has a building that is not used in the business operation; they rented it out and receive $10,080 rent every month. The company requires a minimum cash balance of $14,000 to start a month.
Budgeted Selling and Administrative Expenses Salary Expense Sales Commissions 5% of Sales Insurance Expense Rent Depreciation on equipment Utilities Total Operating Expenses Schedule of Cash Payments for Selling_and Administrative Expenses Salary Expense 100% of Prior Month Sales Commissions Insurance Expense Rent 100% of Prior Months Utilities Expense Total Payments for Selling and Administrative Expenses October 46,000 23,000 20,000 24,000 28,500 2,900 144,400 ? 23,100 20,000 ? 3,000 ? November December 46,500 47,000 23,500 23,300 20,000 20,000 24,000 24,000 28,500 28,500 3,100 3,300 145,600 146,100 46,500 ? 20,000 ? ? ? ? ? 20,000 24,000 ? ? What is the total amount of Selling and Administrative expenses for the fourth quarter that the company will report on its pro forma income statement?
Budgeted Selling and Administrative Expenses Salary Expense Sales Commissions 5% of Sales Insurance Expense Rent Depreciation on equipment Utilities Total Operating Expenses Schedule of Cash Payments for Selling and Administrative Expenses Salary Expense 100% of Prior Month Sales Commissions Insurance Expense October November December Multiple Choice 30,000 30,500 15,000 15,500 12,000 12,000 14,400 14,400 16,500 16,500 2,100 2,300 90,000 91, 200 ? 15,100 12,000 ? 2,200 ? 30,500 ? 12,000 ? ? ? Rent 100% of Prior Months Utilities Expense Total Payments for Selling and Administrative Expenses The amount of cash paid for Selling and Administrative expenses during the month of November is: 31,000 15,300 12,000 14,400 16,500 2,500 91,700 ? ? 12,000 14,400 ?
Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: Fixed Cost Cost per Car Washed $ 0.70 $ 0.09 $ 0.20 $ 0.30 per Month Cleaning supplies Electricity $ 1,400 Maintenance $ 4,500 $ 8,100 $ 2,100 $ 1,400 Wages and salaries Depreciation Rent Administrative expenses $ 0.03 For example, electricity costs are $1,400 per month plus $0.09 per car washed. The company expects to wash 8,000 cars in August and to collect an average of $6.30 per car washed.
Relevant data from Picta Company’s operating budgets are presented below. The company’s financial year ends on 30 June. Quarter 1Quarter 2Sales$248,470$251,539Direct material purchases120,295128,832Direct labor76,55374,289Manufacturing overhead26,00024,400Selling and administration expenses33,50033,500Depreciation included in selling and administration expenses 2,000 2,500 Collection from customers230,524220,116Cash payments for purchases114,345118,346 Additional data:Equipment was sold in July for $8,000 and $4,500 in November. Dividends of $5,500 were paid in August. The beginning cash balance was $80,395 and a required minimum cash balance per quarter is $60,000. The company has a 15% open line of credit for $70 000 with their bank. Required: a) Use this information to prepare a cash budget for the first two quarters of the year. bi) Briefly comment on Picta Company’s expected cashflow position in the first two quarters of the year.
Following is Budgeted Data of R Ltd. Prepare Cash Budget for the quarter ended 31st March 2007. Month Sales Purchases Wages Misc.Exps November’06 1,30,000.00 98,000.00 12,000.00 8,000.00 December’06 1,50,000.00 1,10,000.00 15,000.00 9,000.00 January’07 90,000.00 1,14,000.00 9,000.00 7,000.00 February’07 1,26,000.00 1,16,000.00 12,000.00 14,000.00 March’07 98,000.00 85,000.00 8,000.00 7,000.00 Additional Information: - 1. Cash on Hand as on 1st January 2007 is Rs 5,000/-. Sales: - 20% realized in the month of sale, discount allowed 2% and balance is subsequent 2 months. 2. Purchases are paid for in the following month of supply. 3. Wages are 50% in arrears and paid in subsequent month. 4. Miscellaneous Expenses are paid a month in arrears. 5. Rent of Rs 1,000 per month is paid quarterly in advance. 6. Income Tax is due on 15th March 2007 Rs 21,500/-. 7. Interest on…
Budgeted cash payments. Would I begin with Cost of Direct materiasl purchase of April-3,010, May-3,650,June-4,015, 2nd Quarter -10,675?
You are provided with the following information taken from Wildhorse Inc.'s March 31, 2025, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 1. 2. 3. 4. 5. Additional information concerning Wildhorse Inc. is as follows. 6. 7. Gross profit is 25% of sales. Actual and budgeted sales data: March (actual) April (budgeted) March April Purchases March $48,200 $19,280 42,420 $61,700 Purchases April $11,600 70,700 20,180 36,010 Sales are both cash and credit. Cash collections expected in April are: (40% of $48,200) (60% of $70,700) 120,800 22,560 154,500 11.680 Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expecte $22,560 28,320 $50,880 Cash operating costs are anticipated to be $12,630 for the month of April. Equipment costing $2,560 will be purchased for cash in April. The company wishes to maintain a minimum cash balance…
Sonoma Housewares Inc. Cash Budget For the Three Months Ending July 31 May June July Estimated cash receipts from: Cash sales $ $ Collection of accounts receivable Total cash receipts $ Estimated cash payments for: Manufacturing costs Selling and administrative expenses Capital expenditures Other purposes: Income tax Dividends Total cash payments Cash increase or (decrease) $ bala at beginning Cash balance at end of month Minimum cash balance Excess (deficiency) $
Required information [The following information applies to the questions displayed below.] Lamonte Company reports the following budgeted December 31 adjusted trial balance. Debit $ 52,200 122, 200 66, 200 127,200 Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation-Equipment Accounts payable Loan payable Common stock Retained earnings (beginning year balance) Sales Cost of goods sold Loan interest expense Depreciation expense Salaries expense Totals LAMONTE COMPANY Budgeted Income Statement For Year Ended December 31 Gross profit Selling, general and administrative expenses 362,200 10, 200 12, 200 124, 200 $ 876,600 Prepare the budgeted income statement for the current year ended December 31. Ignore income taxes. $ Credit 0 0 $ 27,200 36,200 24, 200 205,500 61,300 522, 200 $ 876,600
Wheeling Company is a merchandiser that provided a balance sheet as of September 30 as shown below: Assets Cash. Accounts receivable Inventory Buildings and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity Wheeling Company Balance Sheet September 30 $ 59,000 90,000 32,400 214,000 $395,400 $ 73,000 216,000 106,400 $395,400 The company is in the process of preparing a budget for October and has assembled the following data: 1. Sales are budgeted at $240,000 for October and $250,000 for November. Of these sales, 35% will be for cash; the remainder will be credit sales. Forty percent of a month's credit sales are collected in the month the sales are made, and the remaining 60% is collected in the following month. All of the September 30 accounts receivable will be collected in October. 2. The budgeted cost of goods sold is always 45% of sales and the ending merchandise…