AD-DEEN CONSULTANCY is estimating its cash requirement for the second quarter of year 2012. The company's...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
AD-DEEN CONSULTANCY is estimating its cash requirement for the second quarter of year 2012. The company's forecasted sales are as follows: a) b) c) d) e) f) g) h) i) j) k) Month January February March April May June July Total sale 3 m 5m 5 m 6m 3 m 2 m 2 m Cash sale are 50percent of the current month's sale, while another 50percent were sold on credit. 70percent of the month's credit sale will be collected in the next month, 20percent will be collected two month after the sale and the balance of 10percent is bad debt. The purchase of raw material are 60percent of sales and were made one month before sales, and the payment will be made a month later. Office and warehouse rentals are RM100,000 per month. Payment of dividends for 2012 will be made on May is RM50,000. Salary and wages RM30,000 per month. Depreciation cost is RM150,000 per month, taxation cost involved for first half year of 2012 is RM45,000 will be made in June. The company will pay insurance premiums of RM2,800 in the month of June. The purchase of a new asset involving a cost of RM400,000 will be made in the month of April 2012. Ending cash balance of the company for March is RM300,000. The cash balance of the company for March is RM300,000. Interest rate of 10percent per year will be charged if the company makes a loan. Required Prepare a cash budget for the second quarter of 2012 of AD-DEEN CONSULTANCY. AD-DEEN CONSULTANCY is estimating its cash requirement for the second quarter of year 2012. The company's forecasted sales are as follows: a) b) c) d) e) f) g) h) i) j) k) Month January February March April May June July Total sale 3 m 5m 5 m 6m 3 m 2 m 2 m Cash sale are 50percent of the current month's sale, while another 50percent were sold on credit. 70percent of the month's credit sale will be collected in the next month, 20percent will be collected two month after the sale and the balance of 10percent is bad debt. The purchase of raw material are 60percent of sales and were made one month before sales, and the payment will be made a month later. Office and warehouse rentals are RM100,000 per month. Payment of dividends for 2012 will be made on May is RM50,000. Salary and wages RM30,000 per month. Depreciation cost is RM150,000 per month, taxation cost involved for first half year of 2012 is RM45,000 will be made in June. The company will pay insurance premiums of RM2,800 in the month of June. The purchase of a new asset involving a cost of RM400,000 will be made in the month of April 2012. Ending cash balance of the company for March is RM300,000. The cash balance of the company for March is RM300,000. Interest rate of 10percent per year will be charged if the company makes a loan. Required Prepare a cash budget for the second quarter of 2012 of AD-DEEN CONSULTANCY.
Expert Answer:
Answer rating: 100% (QA)
To estimate ADDEEN CONSULTANCYs cash requirement for the second quarter of 2012 we need to consider ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Calculate the Return on Invested Capital Cash Receivables Inventory Total current assets Net fixed assets Total assets Sales Cost of goods sold: Materials Labor Heat, light, and power Indirect labor...
-
A psychology professor decides to give a quiz at the beginning of every class in hopes that it will encourage her students to do the assigned readings. However, after a few quizzes have been given,...
-
In problem 3.5 at the end of Chapter 3, you calculated measures of central tendency for four variables for 15 respondents. Two of those variables are reproduced here. Calculate the mean (if...
-
Suppose the money supply is $250 million dollars and the demand for money is given by Qm D = 400 - 40i, where Qm D is in millions of dollars. A. What is the equilibrium interest rate in this economy?...
-
Distinguish between mortgage and debenture bonds.
-
Use rules of exponents to simplify the expression. Use positive exponents to write your answer. ()
-
When the Concepcions went to AT&T to get a phone, they were confused as to why they were paying money for the phone when it was advertised as being free. They had to pay sales tax on the full normal...
-
Comprehensive variance analysis, responsibility issues (CMA, adapted) Styles, Inc. manufactures a full line of well-known sunglasses frames and lenses. Styles uses a standard costing system to set...
-
1. Create a demand graph using the following table of values: PRICE QUANTITY 500 10 20 450 30 400 40 350 50 300 60 250 70 200 2. Create a supply graph using the following table of values: PRICE...
-
Whitestone Company produces two subassemblies, JR-14 and RM-13, used in manufacturing trucks. The company is currently using an absorption costing system that applies overhead based on direct-labor...
-
One option Pets-R-awesOMe is considering for its call center is to cross-train the two staff so they can both take orders or solve problems. In this case, all customers (i.e., those wishing to place...
-
Water is being pushed through a pipe that has a 5 cm diameter at a rate of 2.0 cm/s. The pipe then enters a constriction as goes down to a smaller pipe of 3.0 cm in diameter. How fast is the water...
-
A ball with a mass of 0.50 kg and a speed of 6 m/s collides perpendicularly with a wall and bounces off with a speed of 4 m/s in the opposite direction. What is the magnitude of the impulse acting on...
-
A light source with an intensity I, is shining on a sequence of polarizers. What will be the intensity on the other side of the first polarizer? Now imagine that you place a second polarizer behind...
-
You are thinking about taking gymnastics, so you go to the facility and get an idea of what to expect by looking out from the viewing room. The viewing room window is 2.00 m above the trampoline...
-
Two spherical, nonconducting, and very thin shells of uniformly distributed positive charge Q and radius d are located a distance 12d from each other. A positive point charge q is placed inside one...
-
Consider the following bond portfolio: Bond Value Maturity A B $300 million 3 years 300 4 8 400 Coupon 0% 6 0 Yield 10% 10 10 a) What is the bond portfolio's duration? b) Calculate the capital loss...
-
With your classmates, form small teams of skunkworks. Your task is to identify an innovation that you think would benefit your school, college, or university, and to outline an action plan for...
-
What is a real return bond?
-
Describe the suicide clause.
-
What is discounting?
-
The expected effect on market efficiency of opening a securities market to trading by foreigners would be to: A. Decrease market efficiency. B. Leave market efficiency unchanged. C. Increase market...
-
Suppose that a speculative-grade bond issuer announces, just before bond markets open, that it will default on an upcoming interest payment. In the announcement, the issuer confirms various reports...
-
1. An analyst estimates that a securitys intrinsic value is lower than its market value. The security appears to be: A. Undervalued. B. Fairly valued. C. Overvalued. 2. A market in which assets...
Study smarter with the SolutionInn App