Melanie Inc. provides you with the following budgeted information for two months in year 2013: March April
Fantastic news! We've Found the answer you've been seeking!
Question:
Melanie Inc. provides you with the following budgeted information for two months in year 2013:
March | April | |
Sales | $600,000 | $630,000 |
Manufacturing Costs | 230,000 | 400,000 |
Capital Expenditures* | 275,000 | 25,000 |
General and Administration Costs (including amortization) | 100,000 | 125,000 |
*includes training programs, machines and buildings |
Expectations:
- Cash sales represent 10% of total sales
- All sales on account are collected in the following month
- 65% of March’s $275,000 worth of capital expenditures is to be paid at the end of March. The remainder is to be paid in the following month. April's capital expenditure will be paid in May.
- Monthly amortization represents 20% of general and administration costs
- Manufacturing costs and general and administration costs are to be paid in the month in which they are incurred
- Dividends of $7,000 are expected to be declared in March and paid in April
- Melanie Inc. obtains the minimum financing needed to ensure at least a $6,000 cash balance at the end of the month through a bank loan. Assume that any amount taken out of the bank loan may be repaid only at year end.
As of March 1
Cash | $20,000 |
Accounts Receivable* | 187,000 |
Inventory | 30,000 |
Long-Term Assets | 85,000 |
Accumulated Depreciation | 8,000 |
Accounts Payable | 13,000 |
Dividends Payable (in March) | 5,000 |
Notes Payable | 193,000 |
Stockholder's Equity | 103,000 |
*Comprised only of sales on account incurred in February |
Do not enter dollar signs or commas in the input boxes.
Use the negative sign for negative values.
a) Prepare a cash budget for March and April.
Receipts:
Melanie Inc. Cash Budget for March and April | ||
March | April | |
Cash from sales | $Answer | $Answer |
Collection from customers | $Answer | $Answer |
Total cash receipts: | $Answer | $Answer |
Disbursements: | ||
Manufacturing costs | $Answer | $Answer |
General and admin. costs | $Answer | $Answer |
Capital Expenditures | $Answer | $Answer |
Dividend Payment | $Answer | $Answer |
Total Cash Disbursements: | $Answer | $Answer |
Cash Excess (Deficit) | $Answer | $Answer |
Financing Requirements: | ||
Bank Loan | $Answer | $Answer |
Total Cash Inflow / (Outflow) | $Answer | $Answer |
Opening Cash Balance | $Answer | $Answer |
Ending Cash Balance | $Answer | $Answer |
Related Book For
Managerial Accounting
ISBN: 978-1118385388
2nd edition
Authors: Ramji Balakrishnan, Konduru Sivaramakrishnan, Geoff B. Sprinkle
Posted Date: