Construction Accounting And Financial Management (4th Edition)
4th Edition
ISBN: 9780135232873
Author: Steven J. Peterson MBA PE
Publisher: PEARSON
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Textbook Question
Chapter 9, Problem 7P
Determine the annual budget for office utilities using the data from the past 12 months shown in Figure 9-7. Utility costs are expected to increase by 7% per year due to inflation. The company is planning on doubling its office space in July by expanding into some unoccupied space adjacent to its existing office space.
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Instructions
Prepare the following schedules for each month in the first quarter of 2017 and for the quarter in total:
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Cash DisbursementTimber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $64,000 is paid for computer services. Sales revenue is forecast as follows
Month
Sales Revenue
February
$220,000
March
260,000
April
270,000
May
310,000
June
290,000
July
330,000
RequiredPrepare a schedule of cash disbursements for April, May, and June.Do not use a negative sign with your answers.
Timber Company
Schedule of Cash Disbursements
April, May, and June
April
May
June
Lumbers purchases
Answer
Answer
Answer
Wages
Answer
Answer
Answer
Operating expenses
Answer
Answer…
Chapter 9 Solutions
Construction Accounting And Financial Management (4th Edition)
Ch. 9 - What is general overhead?Ch. 9 - What are the two types of general overhead budgets...Ch. 9 - You are preparing a general overhead budget to be...Ch. 9 - Why must meals and entertainment be kept separate...Ch. 9 - Why are fixed costs fixed only over a specified...Ch. 9 - Determine the annual budget for office utilities...Ch. 9 - Determine the annual budget for office utilities...Ch. 9 - Prob. 8PCh. 9 - Prob. 9P
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