The following information is known for Eskew Company: A four-month insurance policy will be purchased on
Question:
The following information is known for Eskew Company:
● A four-month insurance policy will be purchased on October 1 for $800.
● Salaries of $5,000 will be paid on October 1 for the period from October 1 to December 22 and accrued for $1,000 on December 31.
● Dividends in the amount of $2,250 are expected to be declared on December 10 but not paid.
● Total sales during the fourth quarter are projected to be $17,000, of which $11,000 is expected to be collected.
a. What amount would appear on the cash disbursements budget for operating activities for the quarter ended December 31?
b. What amount would appear on the cash disbursements budget for financing and investing activities for the quarter ended December 31?
c. What amount would appear on the cash receipts budget for the quarter ended December 31?
d. What net amount would appear on the budgeted quarterly income statement on December 31?
Step by Step Answer:
Managerial Accounting
ISBN: 9780137689453
1st Edition
Authors: Jennifer Cainas, Celina J. Jozsi, Kelly Richmond Pope