Your question: Course: ACC 212 Sweet Acacia Company prepares monthly cash budgets. Relevant data from operating budgets
Question:
Your question:
Course: ACC 212
Sweet Acacia Company prepares monthly cash budgets. Relevant data from operating budgets for 2023 are as follows:
January | February | |||
Sales | $349,000 | $396,000 | ||
Direct materials purchases | 121,000 | 109,000 | ||
Direct labour | 84,000 | 114,000 | ||
Manufacturing overhead | 60,000 | 76,000 | ||
Selling and administrative expenses | 74,000 | 79,000 |
All sales are on account. Sweet Acacia expects collections to be 50% in the month of sale, 40% in the first month following the sale, and 10% in the second month following the sale. It pays 30% of direct materials purchases in cash in the month of purchase and the balance due in the month following the purchase. Other data are as follows:
1. | Credit sales: November 2022, $198,000; December 2022, $281,000 |
2. | Purchases of direct materials: December 2022, $91,000 |
3. | Other receipts: January?collection of December 31, 2022, notes receivable $4,000; February?proceeds from sale of securities $7,000 |
4. | Other disbursements: February?payment of $21,000 for land |
The company expects its cash balance on January 1, 2023, to be $51,000. It wants to maintain a minimum cash balance of $40,000. Prepare a cash budget for January and February using columns for each month. Please fill all the yellow blanks / all the numbers given are correct answers Please tell me the answer in order. 1.
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Managerial Accounting Tools For Business Decision Making
ISBN: 9781119731825
6th Canadian Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso