1. The sales manager would like to increase the sales price by 10 next quarter, what will...
Question:
1. The sales manager would like to increase the sales price by 10 next quarter, what will be the projected revenues be for the 2nd quarter.
2. The production manager would like to purchase new equipment for next quarter due to the fact that their competitor has purchased equipment which cost $50,000. Will the company be able to make the purchase or will you need more information?
3. The CEO feels that the cash budget is not necessary, please explain to the CEO why cash budgeting is important to the organization.
4. Please explain to the management team how a competitor’s actions can affect business planning.
McClosky Corporation Sales Budget Req A Calculation January February March April May June First Quarter January February March April May June Sales units 9,000 11,000 16,000 14,000 13,000 12,000 36,000 Selling price per unit 15 15 15 15 15 15 15 Total budgeted sales 135,000 165,000 240,000 210,000 195,000 180,000 540,000 9000*15 11000*15 16000*15 14000*15 13000*15 12000*15 Schedule of Cash Receipts Calculation Req A1 January February March First Quarter January February March Collection in the month of sale 94,500 115,500 168,000 378,000 135000*70% 165000*70% 240000*70% Collection in the first month after the sale 17,000 27,000 33,000 77,000 =85000*20% 135000*20% 165000*20% Collection in the second month after the sale 9,000 8,500 13,500 31,000 =90000*10% =85000*10% 135000*10% Total Cash Receipts 120,500 151,000 214,500 486,000 Production budget Reg B January February March April May June First Quarter January February March April May June Sales units 9,000 11,000 16,000 14,000 13,000 12,000 36,000 Desired ending inventory 550 800 700 650 600 600 700 11000*5% 16000*5% 14000*5% 13000*5% 12000*5% 12000*5% Total units available for sale 9,550 11,800 16,700 14,650 13,600 12,600 36,700 Less: Estimated Beginning inventory 500 550 800 700 650 600 500 End Inv of Jan End Inv of Feb End Inv of Mar End Inv of Apr End Inv of May Total units to be produced 9,050 11,250 15,900 13,950 12,950 12,000 36,200 Direct Materials Purchase Budget Req C Units to be produced Materials required per unit January February March April May June First Quarter January February March April May June 9,050.00 11,250.00 15,900.00 13,950.00 12,950.00 12,000.00 36,200.00 1.40 1.40 1.40 1.40 1.40 1.40 1.40 Materials required for Production Desired ending inventory 12,670.00 15,750.00 22,260.00 19,530.00 18,130.00 16,800.00 50,680.00 9050*1.4 11250*1.4 15900*1.4 13950*1.4 12950*1.4 12000*1.4 787.50 1,113.00 976.50 906.50 840.00 976.50 15750*5% 22260*5% 19530*5% 18130*5% 16800*5% Total Materials available for sale 13,457.50 16,863.00 23,236.50 20,436.50 18,970.00 51,656.50 Less: Estimated Beginning inventory 1,100.00 787.50 1,113.00 976.50 906.50 1,100.00 End Inv of Jan End Inv of Feb End Inv of Mar End Inv of Apr Total Materials to be purchased 12,357.50 16,075.50 22,123.50 19,460.00 18,063.50 50,556.50 Cost per pound 0.90 0.90 0.90 0.90 0.90 0.90 Cost of direct Materials to be purchased 11,121.75 14,467.95 19,911.15 17,514.00 16,257.15 45,500.85 12357.5*0.9 16075.5*0.9 22123.5*0.9 19460*0.9 18063.5*0.9 Schedule of Cash Payments for raw materials Req C1 January February March First Quarter January February March Payment in the month of purchase 6,673 8,681 11,947 27,301 11121.75*60% 14467.95*60% 19911.15*60% Payment in the month after purchase 2,650 4,449 5,787 12,886 11121.75*40% 14467.95*40% Total Cash Payments for raw materials 9,323 13,129 17,734 40,186 McClosky Corporation Sales Budget Req A Calculation January February March April May June First Quarter January February March April May June Sales units 9,000 11,000 16,000 14,000 13,000 12,000 36,000 Selling price per unit 15 15 15 15 15 15 15 Total budgeted sales 135,000 165,000 240,000 210,000 195,000 180,000 540,000 9000*15 11000*15 16000*15 14000*15 13000*15 12000*15 Schedule of Cash Receipts Calculation Req A1 January February March First Quarter January February March Collection in the month of sale 94,500 115,500 168,000 378,000 135000*70% 165000*70% 240000*70% Collection in the first month after the sale 17,000 27,000 33,000 77,000 =85000*20% 135000*20% 165000*20% Collection in the second month after the sale 9,000 8,500 13,500 31,000 =90000*10% =85000*10% 135000*10% Total Cash Receipts 120,500 151,000 214,500 486,000 Production budget Reg B January February March April May June First Quarter January February March April May June Sales units 9,000 11,000 16,000 14,000 13,000 12,000 36,000 Desired ending inventory 550 800 700 650 600 600 700 11000*5% 16000*5% 14000*5% 13000*5% 12000*5% 12000*5% Total units available for sale 9,550 11,800 16,700 14,650 13,600 12,600 36,700 Less: Estimated Beginning inventory 500 550 800 700 650 600 500 End Inv of Jan End Inv of Feb End Inv of Mar End Inv of Apr End Inv of May Total units to be produced 9,050 11,250 15,900 13,950 12,950 12,000 36,200 Direct Materials Purchase Budget Req C Units to be produced Materials required per unit January February March April May June First Quarter January February March April May June 9,050.00 11,250.00 15,900.00 13,950.00 12,950.00 12,000.00 36,200.00 1.40 1.40 1.40 1.40 1.40 1.40 1.40 Materials required for Production Desired ending inventory 12,670.00 15,750.00 22,260.00 19,530.00 18,130.00 16,800.00 50,680.00 9050*1.4 11250*1.4 15900*1.4 13950*1.4 12950*1.4 12000*1.4 787.50 1,113.00 976.50 906.50 840.00 976.50 15750*5% 22260*5% 19530*5% 18130*5% 16800*5% Total Materials available for sale 13,457.50 16,863.00 23,236.50 20,436.50 18,970.00 51,656.50 Less: Estimated Beginning inventory 1,100.00 787.50 1,113.00 976.50 906.50 1,100.00 End Inv of Jan End Inv of Feb End Inv of Mar End Inv of Apr Total Materials to be purchased 12,357.50 16,075.50 22,123.50 19,460.00 18,063.50 50,556.50 Cost per pound 0.90 0.90 0.90 0.90 0.90 0.90 Cost of direct Materials to be purchased 11,121.75 14,467.95 19,911.15 17,514.00 16,257.15 45,500.85 12357.5*0.9 16075.5*0.9 22123.5*0.9 19460*0.9 18063.5*0.9 Schedule of Cash Payments for raw materials Req C1 January February March First Quarter January February March Payment in the month of purchase 6,673 8,681 11,947 27,301 11121.75*60% 14467.95*60% 19911.15*60% Payment in the month after purchase 2,650 4,449 5,787 12,886 11121.75*40% 14467.95*40% Total Cash Payments for raw materials 9,323 13,129 17,734 40,186
Expert Answer:
REQUIREMENT 1 A B C D E F G H CASH BUDGET PARTICULARS January February March April May June 4 Estimated sales 900000 1100000 1600000 1400000 1300000 1200000 5 Sales 13500000 16500000 24000000 21000000 ... View the full answer
Business research methods
ISBN: 978-1439080672
8th Edition
Authors: William G Zikmund , Barry J. Babin, Jon C. Carr, Mitch Griff
Students also viewed these accounting questions
-
Address the following questions about regression analysis: a. Define simple linear regression. b. When is it most appropriate to rely on raw parameter coefficients and when is it most appropriate to...
-
Address the following questions about the confirmation of customers' accounts receivable. a. Why do confirmations not typically provide reliable evidence about the completeness assertion? b. What is...
-
New Wave Shelving's Inventory Manager would like to start using an ABC inventory classification system. The following table shows the annual inventory usage of all the 19 component items that the...
-
Let v = (2, 5) and w = (3, 2). Find the length of v + w.
-
Extend Algorithms 3.4 and 3.5 to include as output the first and second derivatives of the spline at the nodes.
-
A steel wire of 2.0 mm 2 cross section at 30 C is held straight (but under no tension) by attaching its ends firmly to two points a distance 1.50 m apart. (Of course this will have to be done out in...
-
Determine the COP for a simple vapour compression refrigeration system.
-
In its income statement for the year ended December 31, 2010, Pele Company reported the following condensed data Instructions(a) Prepare a multiple-step income statement.(b) Prepare a single-step...
-
A 5,900-kg truck runs into the rear of a 1,000-kg car that was stationary. The truck and car are locked together after the collision and move with speed 3 m/s. Compute how much kinetic energy was...
-
The following trial balance was extracted from the books of Alice Ltd, a wine merchant, at the close of business on 31 December 2020 Trial Balance Capital Purchases Sales Revenue Trade payable Trade...
-
Return to the FlexMan data in Exercise 4. The company has signed a service-level agreement with its customers and committed to carry safety inventory from one month to the next that equals at least...
-
Consider two whaling firms. Each whaler knows that unrestricted access to the open oceans will increase the risk of hunting whales to extinction.
-
The scope of a project is expanded through the formal change control process, causing the schedule to be extended beyond the original due date. This is an example of which type of influence?
-
The following information as to earnings and deductions for the weekly pay period ended March 9 was taken from a company's p records: Employees' Names Hellen Craig Joseph Lim Dino Patelli Sharleen...
-
Question 2: See the following financial information (Income Statement and balance Sheet) for Thornton Company for the years ending December 31, 1998 and 1999. Notes Payable Inventories Long-term...
-
On January 1, 2024, Alamar Corporation acquired a 35 percent interest in Burks, Incorporated, for $235,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of...
-
1. Sketch stress distribution in the cross-sections (defined by the dashed-lines) for the following loading cases. If there are both normal and shear stresses, sketch them separately. Also indicate...
-
In the figure, two loudspeakers, separated by a distance of d1 = 2.63 m, are in phase. Assume the amplitudes of the sound from the speakers are approximately the same at the position of a listener,...
-
As a manager, what degree of formality would you want from your research department?
-
What forms does interviewer cheating take? How can such cheating be prevented or detected?
-
What type of exploratory research would you suggest in the following situations? a. A product manager suggests development of a nontobacco cigarette blended from wheat, cocoa, and citrus. b. A...
-
The following data is available for an engine working on ideal Otto cycle Temperature at the beginning of compression \(=50^{\circ} \mathrm{C}\). Temperature at the end of compressor \(=373^{\circ}...
-
A single cylinder, four-stroke cycle oil engine works on diesel cycle. The following readings were taken when the engine was running at full load : Calculate (a) FP of engine, (b) mechanical...
-
A six-cylinder, four-stroke petrol engine develops \(40 \mathrm{~kW}\) when running at \(3000 \mathrm{rpm}\). The volumetric efficiency at NTP is \(85 \%\). Indicated thermal efficiency is \(25 \%\)....
Study smarter with the SolutionInn App