The following information is provided to assist in the preparation of the Cash Budget for TSA...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information is provided to assist in the preparation of the Cash Budget for TSA Ltd. for June, 2012: • The cash balance at 1¹ June, 2012 is $30,000 • All sales are on credit March April May June . Actual/Budgeted Sales $ • 140,000 120,000 130,000 155,000 Budgeted Purchases $ Cash collections from credit customers are: 70% in the month following the sale 20% in the second month following the sale 10% in the third month following the sale • All purchases are made on credit and payments are made as follows: 60% of purchases are paid for in the month of purchase 40% of purchases are paid for in the month following the purchase. 72,000 64,000 68,000 82,000 • Selling and administrative expenses each month are $24,000 plus 15% of sales for that month. This includes $6,000 per month for depreciation. • Equipment costing $35,000 is expected to be bought in May and paid for in June Required: (i) Prepare a schedule of cash collections for the month of June, 2012. (ii) Prepare a cash budget for the month of June, 2012. The following information is provided to assist in the preparation of the Cash Budget for TSA Ltd. for June, 2012: • The cash balance at 1¹ June, 2012 is $30,000 • All sales are on credit March April May June . Actual/Budgeted Sales $ • 140,000 120,000 130,000 155,000 Budgeted Purchases $ Cash collections from credit customers are: 70% in the month following the sale 20% in the second month following the sale 10% in the third month following the sale • All purchases are made on credit and payments are made as follows: 60% of purchases are paid for in the month of purchase 40% of purchases are paid for in the month following the purchase. 72,000 64,000 68,000 82,000 • Selling and administrative expenses each month are $24,000 plus 15% of sales for that month. This includes $6,000 per month for depreciation. • Equipment costing $35,000 is expected to be bought in May and paid for in June Required: (i) Prepare a schedule of cash collections for the month of June, 2012. (ii) Prepare a cash budget for the month of June, 2012.
Expert Answer:
Answer rating: 100% (QA)
1 Schedule of Cash Collections for June 2012 To determine the cash collections for June 2012 we need ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
As a new employee of Clayton Asset Management, you are assigned to evaluate the credit quality of BRT Corp. bonds. Clayton holds the bonds in its high-yield bond portfolio. The following information...
-
You were recently hired as an assistant controller at Just Tables (JT). JT sells one product, dining room tables made out of red cedar. You have been charged with preparing a cash budget for the...
-
Manny Fold owns a factory that specializes in making titanium valves for high-performance engines on a just in time basis. Thus, Manny produces what he sells in a particular month. There are no...
-
The acquisition committee of KE plc is considering making takeover bids for two competitors, Scot plc, a listed company, and Ring Ltd. Summarised financial data is given below for these companies....
-
This problem continues the Draper Consulting, Inc., situation from Problem 17-35 of Chapter 17. Recall that Draper allocated indirect costs to jobs based on a predetermined indirect cost allocation...
-
Describe the nuances of the terms medical records and health information. Why does HIPAA use the latter term?
-
Oncology Tech is a manufacturer of cancer therapy devices called compensators. CMS was a company that sold cancer treatment planning software for use in purchasing cancer treatment devices. In 2006,...
-
(Entries and Questions for Bond Transactions) On June 30, 2010, Mackes Company issued $5,000,000 face value of 13%, 20-year bonds at $5,376,150, a yield of 12%. Mackes uses the effective-interest...
-
Video - Youtube -Lease Accounting Basic Example To Determine Lease Type (Capital Vs Operating Lease) https://www.youtube.com/watch?v=slNrpKODlSw
-
7.32. An asteroid is at a distance of 2 106 km from Earth and is moving with a speed of 10 km/s. With- out gravitational pull, the asteroid would miss Earth by a perpendicular distance of 25,000 km...
-
Draw a structural formula of the S configuration of the compound shown below. a) b) c) Use the wedge/hash bond tools to indicate stereochemistry. Include H atoms at chiral centers only. If a group...
-
Kohinoor Agency. operates a talent agency called Kohinoor Agency. Some clients pay in advance for services; others are billed after services have been performed. Advance payments are credited to an...
-
Navy Federal Credit Union Union's ROA is 1.17%, very similar to most publicly listed commercial banks. If you can get a ROA of 14% on Johnson and Johnson or 17% on Apple why would you ever invest in...
-
Gwen is putting aside $350/month to help save for a down payment on her first house. Assume she will get 9% per year for the entire period and will save for 12 years. How much will she have at the...
-
Assume Companies 1, 2, 3, and 4 performed equally well in Year 202X. The only differences between the companies are shown in the following table: Depreciable Life of Plant & Equipment Company 1 2 3 4...
-
An asset is acquired for a 5-year project. The book value of the asset will be worth $760,000 at the end of 5 years. The asset has an acquisition cost of $17,460,000 and will be sold for $880,000 at...
-
2. Consider the S.L.E. x1 + x2 + x3 + x4 + 3x5 = 2 x+3x2+2x3+4x4 + 2x5 = 2 2x2 + x3 + 3x4+x5 = 2 (a) Write this S.L.E. as a matrix equation Ax = b. (b) Put the augmented matrix for this S.L.E. in...
-
Show that every group G with identity e and such that x * x = e for all x G is abelian.
-
The budgeted unit sales of Haerve Company for the upcoming fiscal year are provided below: The companys variable selling and administrative expenses per unit are $2.75. Fixed selling and...
-
The Central Area Well-Baby Clinic provides a variety of health services to newborn babies and their parents. The clinic is organized into a number of departments, one of which is the Immunization...
-
Fred Austin is employed by White Company where he assembles a component part for one of the companys products. Fred is paid $12 per hour for regular time, and he is paid time and a half (i.e., $18...
-
The Pure Food and Drug Act of 1906 is known as Dr. Wileys Law. It is generally regarded by non-economic historians as representing the triumph of consumer interests over producer interests. a. Why...
-
The elasticity of the supply of labor in part determines who bears the burden of Social Security taxes. Those taxes are typically levied in matching 6.2 percent shares on workers wages and wages paid...
-
When the price of ketchup rises by 18 percent, the demand for hot dogs falls by 2 percent. a. Calculate the cross-price elasticity of demand. b. Are the goods complements or substitutes? c. In the...
Study smarter with the SolutionInn App