12:46 :: 22% ACCT 1003_Document 1_Upload - Saved QUESTION 2 (40 MARKS) Classique Household Furnishings & Appliances a family owned furniture store. You are the management accountant of the concern and have been given the skal preparing the cash b efore business for the quarter ending September 30, 2018 Your data collection de the following Extracts to the sales and purchases budgets are as follows Cash Sales Purchases On Account 500 Any other shows that ar e for sesona are settied according to the following crepation in accordance with the credeterms 53000 35 In the month following the sale 15 the second month following the sale Accounts payable are settled as follows, in accordance with the credit forms - 4/9060 70% in the month in which the inventory is purchased 30 in the following month IM) Monthly rental is received from a tant for storage space rented to him by Classique Household Furnishings & Appliances. The rentals $840.000 per arm and is received quarterly in advance Rental rating to the quarter under review becomes due on July 1 Computer equipment, which is estimated to cost $350,000, will be acquired for cash in August The manager has made arrangements with the seller to make a cash deposit of 50% of the amount upon signing of the agreement in August, with the balance to be settled in four monthly instalmente arting in Selber 2018 An investment instrument purchased by the company with a few of $480,000 wil mature on July 20, 2018 and will be liquidated on that date. At the same time. Quarterly interest computed at of y, per ain will be collected vil) Fund operating expenses which accrue evenly throughout the yow, we estimated to be $100.000 per an n uding depreciation on non-current of $42.000 per mom and are waited monthly vii) Wages and are expected to be $2,304,000 por arm and will be paid monthly Omer operating expensare aspected to be $144.000 per quarter and are the monthly in the month of August, furniture & fixtures, which cost $455,000, will be sold to an employee at a oss of $20,000. Accumulated depreciation on the tuiture futures at that time is expected to be 3305.000 The employee will be allowed to pay a deposit equal to 60% of the selling price in August with the balance settled in two equal amounts in September October Continued The words Question 2 Continued As part of its investing activities, the management of Classique Household Fumi & Aplom is in the process of completing a major addition to the business property which is estimated to $1.200.000, and which is being funded by edema borrowing, $400,000 of the principal, along with interest of $18,000 is due to be paid on July 15, 2018 The cash on September 30, 2018 is expected to be an overdraft of $254.000 wil) 12:44 PM 22% ACCT 1003_Document 1_Upload - Saved July 20, 2018 and will be liquidated on that de Altheme imeQuarry real computed rate of 8% % per annum will also be collected Fred operating expenses, which accrue evenly throughout the year, we simated to be 100 000 per including depreciation on one of $42.000 per mon d anese vil) Wars and we are expected to be 2.301.000 pera and will be paid monthly Other operating expected to be $100.000 per quand we we nt in the month of August. fumituneftures which cost $455 000 will be sold on to loss of $20.000. Accumulated depreciation on the mure & futures at the expected to be $305.000 The employee will be allowed to pay a deposit equal to 60% of the wing price in August with the balance seed in two equal amounts in September & October Continued The word Question 2 Continued xl) As part of its investing activities, the management of Classique Household Furnishings & Appliances is in the process of completing a major adaton to rebus prily which is estimated to con $1,200,000, and which is being funded by extemal borrowing, SABO,000 of the principal, along with interest of $18,000 is due to be paid on July 15, 2018 The cash balance on September 30, 2018 is expected to be overdraft of 5204.000 xil) Required: (a) The business needs to have a sense of its are cashflows and therefore requires the preparation of the following: A schedule of build cash collection for trade cible for each of the months July to September A schedule of expected cash disbursements for accounts payable for each of the months July to September 14 mars A cash budget, with a total column, for the quarter ending September 30, 2018 showing the expected cash receipts and payments for each month and the ending cash bace for each of the morth given that no financing activity lock place (25marts Upon receipt of the budget the team manager has formed you that all companies in the in in which Classique Ho ld Fumige operare required to a minimum cash balance of $140.000 each more Read on the budget prepared will the business be meg this ocurement The business is ready heavy dcted management does not wish to bomowany al funds from outside ouro Su four el eges hatte bu y no prove the organismo chew Each yut betype 12:46 :: 22% ACCT 1003_Document 1_Upload - Saved QUESTION 2 (40 MARKS) Classique Household Furnishings & Appliances a family owned furniture store. You are the management accountant of the concern and have been given the skal preparing the cash b efore business for the quarter ending September 30, 2018 Your data collection de the following Extracts to the sales and purchases budgets are as follows Cash Sales Purchases On Account 500 Any other shows that ar e for sesona are settied according to the following crepation in accordance with the credeterms 53000 35 In the month following the sale 15 the second month following the sale Accounts payable are settled as follows, in accordance with the credit forms - 4/9060 70% in the month in which the inventory is purchased 30 in the following month IM) Monthly rental is received from a tant for storage space rented to him by Classique Household Furnishings & Appliances. The rentals $840.000 per arm and is received quarterly in advance Rental rating to the quarter under review becomes due on July 1 Computer equipment, which is estimated to cost $350,000, will be acquired for cash in August The manager has made arrangements with the seller to make a cash deposit of 50% of the amount upon signing of the agreement in August, with the balance to be settled in four monthly instalmente arting in Selber 2018 An investment instrument purchased by the company with a few of $480,000 wil mature on July 20, 2018 and will be liquidated on that date. At the same time. Quarterly interest computed at of y, per ain will be collected vil) Fund operating expenses which accrue evenly throughout the yow, we estimated to be $100.000 per an n uding depreciation on non-current of $42.000 per mom and are waited monthly vii) Wages and are expected to be $2,304,000 por arm and will be paid monthly Omer operating expensare aspected to be $144.000 per quarter and are the monthly in the month of August, furniture & fixtures, which cost $455,000, will be sold to an employee at a oss of $20,000. Accumulated depreciation on the tuiture futures at that time is expected to be 3305.000 The employee will be allowed to pay a deposit equal to 60% of the selling price in August with the balance settled in two equal amounts in September October Continued The words Question 2 Continued As part of its investing activities, the management of Classique Household Fumi & Aplom is in the process of completing a major addition to the business property which is estimated to $1.200.000, and which is being funded by edema borrowing, $400,000 of the principal, along with interest of $18,000 is due to be paid on July 15, 2018 The cash on September 30, 2018 is expected to be an overdraft of $254.000 wil) 12:44 PM 22% ACCT 1003_Document 1_Upload - Saved July 20, 2018 and will be liquidated on that de Altheme imeQuarry real computed rate of 8% % per annum will also be collected Fred operating expenses, which accrue evenly throughout the year, we simated to be 100 000 per including depreciation on one of $42.000 per mon d anese vil) Wars and we are expected to be 2.301.000 pera and will be paid monthly Other operating expected to be $100.000 per quand we we nt in the month of August. fumituneftures which cost $455 000 will be sold on to loss of $20.000. Accumulated depreciation on the mure & futures at the expected to be $305.000 The employee will be allowed to pay a deposit equal to 60% of the wing price in August with the balance seed in two equal amounts in September & October Continued The word Question 2 Continued xl) As part of its investing activities, the management of Classique Household Furnishings & Appliances is in the process of completing a major adaton to rebus prily which is estimated to con $1,200,000, and which is being funded by extemal borrowing, SABO,000 of the principal, along with interest of $18,000 is due to be paid on July 15, 2018 The cash balance on September 30, 2018 is expected to be overdraft of 5204.000 xil) Required: (a) The business needs to have a sense of its are cashflows and therefore requires the preparation of the following: A schedule of build cash collection for trade cible for each of the months July to September A schedule of expected cash disbursements for accounts payable for each of the months July to September 14 mars A cash budget, with a total column, for the quarter ending September 30, 2018 showing the expected cash receipts and payments for each month and the ending cash bace for each of the morth given that no financing activity lock place (25marts Upon receipt of the budget the team manager has formed you that all companies in the in in which Classique Ho ld Fumige operare required to a minimum cash balance of $140.000 each more Read on the budget prepared will the business be meg this ocurement The business is ready heavy dcted management does not wish to bomowany al funds from outside ouro Su four el eges hatte bu y no prove the organismo chew Each yut betype