Question 3 King Ltd has a division in Juno Island and the Finance manager has approached...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question 3 King Ltd has a division in Juno Island and the Finance manager has approached to you assist them in developing a cash budget for a period of three months from September to November 2023. The company's activities are planned as follows: 1. Planned sales for August, September, October, and November 2023 are $380,000, $400,000, $440,000 and $460,000. 2. 40% of sales are on a cash basis while the remaining sales are on credit and 60% is collected one month after sale. 3. The company's purchases are 65% of sales. Purchases are made one month prior to sales, with payments made in the month following the purchase. 4. The bank balance on 31 August 2023 is expected to be $80,000. 5. Fixed salaries cost the company $6,800 per month. 6. $90,000 worth of Office Equipment is expected to be bought and paid for at the end of November 2023. NOTE: Copy the cash budget format into your answer booklet. King Ltd Cash budget from September to November 2023: Cash receipts: Total sales (for reference only) Cash sales ( Collection from credit customers: % in the month following sales Total Receipts Cash Payments: Purchases - % of Total sales) % of total sales Fixed salaries Purchase of Office Equipment Total Payments Surplus/(Deficit) for the month Cash balance, at start of month Cash balance, at end of month September $ October $ November $ Total Required: Prepare the monthly cash budget for the period of three months ending November 2023 for King Ltd's Juno Island. [Total: 20 marks] Question 3 King Ltd has a division in Juno Island and the Finance manager has approached to you assist them in developing a cash budget for a period of three months from September to November 2023. The company's activities are planned as follows: 1. Planned sales for August, September, October, and November 2023 are $380,000, $400,000, $440,000 and $460,000. 2. 40% of sales are on a cash basis while the remaining sales are on credit and 60% is collected one month after sale. 3. The company's purchases are 65% of sales. Purchases are made one month prior to sales, with payments made in the month following the purchase. 4. The bank balance on 31 August 2023 is expected to be $80,000. 5. Fixed salaries cost the company $6,800 per month. 6. $90,000 worth of Office Equipment is expected to be bought and paid for at the end of November 2023. NOTE: Copy the cash budget format into your answer booklet. King Ltd Cash budget from September to November 2023: Cash receipts: Total sales (for reference only) Cash sales ( Collection from credit customers: % in the month following sales Total Receipts Cash Payments: Purchases - % of Total sales) % of total sales Fixed salaries Purchase of Office Equipment Total Payments Surplus/(Deficit) for the month Cash balance, at start of month Cash balance, at end of month September $ October $ November $ Total Required: Prepare the monthly cash budget for the period of three months ending November 2023 for King Ltd's Juno Island. [Total: 20 marks]
Expert Answer:
Answer rating: 100% (QA)
King Ltd Cash budget from September to November 2023 September October November Total Cash receipts Total sales for reference only 380000 400000 44000... View the full answer
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
Posted Date:
Students also viewed these accounting questions
-
KanD Spares Ltd produces and sells engine spares for major car brands. Currently, it is considering producing and selling prime Volvo engine component to its five wholesale customers from its three...
-
The Burnaby Division of Columbia Ltd. produces and sells component parts. Its variable costs per unit are $80 for directmaterials, $32 for direct labour and $18 for variable factory overhead. It...
-
Precision Balls Ltd produces and sells high-quality lawn bowls sets. Each set of balls is contained in a wooden carrying case, which is purchased from an outside supplier. The wooden cases are held...
-
client with celiac disease asks for a nutrition plan, what should the trainer recommend? Refer to a dietician 3-day food log to prescribe meal plan A templated meal plan Give a breakdown of...
-
In what ways are Ca and Si cycling in ocean waters similar, and in what ways do they differ? How do the calcium and silica cycles couple to the carbon cycle?
-
Cammie received 100 NQOs (each option provides a right to purchase 10 shares of MNL stock for $10 per share) at the time she started working for MNL Corporation four years ago when MNL's stock price...
-
The Forensic Accounting Box of this chapter noted that forensic accounting techniques are being used to help pick stocks for investing. How might identifying accounting concerns be useful for...
-
Develop a fishbone diagram for the possible causes of your car not starting.
-
For the following exercise, first check the assumptions of ANOVA by generating a Q-Q Plot and by running the Shapiro-Wilk test and Bartlett's test. If the assumptions are violated, attempt to fix the...
-
A 12.75-year maturity zero-coupon bond selling at a yield to maturity of 8% (effective annual yield) has convexity of 150.3 and modified duration of 11.81 years. A 30-year maturity 6% coupon bond...
-
Compare & contrast AD vs AS management policies. State the assumptions of the 4th generation Keynesian model and explain how its endogenous variables are determined. Compare & contrast anticipated vs...
-
Simplify. 7,5 a b a b7 3
-
Chester currently has $20,132 (000) in cash and management has decided to issue stocks and bonds worth an additional $8,000 (000). Assuming that cash from operations will be the same for each of the...
-
2. Consider the following pieces of JAVA code: public Course { public String name; public int enrollment; public double averageGrade; Course(String setName, String setEnrollment, double...
-
Describe and explain what a written program rationale or justification is used to gain the support of ?
-
Describe and explain what project documents should be archived?
-
Use technology to construct the confidence intervals for the population variance o and the population standard deviation . Assume the sample is taken from a normally distributed population. ;=...
-
What impact has the Internet had on the globalization of small firms? How do you think small companies will use the Internet for business in the future?
-
What is risk management and why is it included in the ASXCGC Principles of Good Corporate Governance and Best Practice Recommendations?
-
Fit and Fantastic Ltd produces and sells a range of fitness equipment. Its capital expenditure for the current year of new plant was $240 000, and dividends paid were $30 000. Current liabilities and...
-
On 31 December 2013 the inventory of tennis rackets for Opal Sports Retailers Ltd consisted of: Required: a) Determine the total value of closing inventory at 31 December 2013 applying the inventory...
-
Microsoft, Inc., recognizes revenue from its licensed software products at the time of sale or time of installation. Despite receiving such revenue in cash, Microsoft defers the recognition of a...
-
In September 2015, Boeing agreed to terms to sell 300 planes to China in one of the largest long-term airline contracts ever signed. With contracts to sell a plane, a company such as Boeing would...
-
On April 14, 2006, The Wall Street Journal carried an article headlined Research in Motion Skeptics Pipe Up. The article concerned Research in Motion Ltd. (RIM), the manufacturer of the BlackBerry....
Study smarter with the SolutionInn App