Garden Sculptures presents the following data relating to the expected operations for the months of January to
Question:
Garden Sculptures presents the following data relating to the expected operations for the months of January to March 2021.
Required
(a) Prepare a cash budget on a monthly basis for the three months ending March 2021. The cash balance at 31 December 2020 is $25000.
(b) Explain how a variance report would help the owner of Garden Sculptures monitor the entity’s cash position.
(c) The following actual cash receipts and payments occur during January: receipts from accounts receivable $15 500; new equipment $22000; payments for supplies $3200; the other cash receipts and cash payments as per the budget. Prepare a variance report for January.
(d) What might have caused the lower than expected receipts from the accounts receivable amount?
Step by Step Answer:
Accounting Business Reporting For Decision Making
ISBN: 9780730369325
7th Edition
Authors: Jacqueline Birt, Keryn Chalmers, Suzanne Maloney, Albie Brooks, Judy Oliver, David Bond