Hurtt's Java Seeds is an independent roaster of specialty coffee beans. During March, the company plans...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hurtt's Java Seeds is an independent roaster of specialty coffee beans. During March, the company plans to sell 10,000 pounds of beans at $12.00 per pound. Internet sales account for 50 percent of total sales and are paid for by customers when they place their orders. Of the remaining 50 percent, threefifths are paid for in the month of sale and twofifths in the month following the sale. In February, roasted coffee bean sales are expected to total $99,600. Hurtt's pays for 40 percent of its green coffee beans in the month of purchase and the remaining 60 percent in the month following the purchase. (Refer to your answer for Unit 5.3 Exercise for March purchases.) February's purchases of green coffee beans are expected to total $25,000. Variable selling and administrative expenses are 20 percent of sales, and fixed administrative expenses are $30,000 per month. Both are paid in the month incurred, as are direct labor costs and manufacturing overhead. In March, Hurtt's must make a $30,000 payment on its longterm loan, of which $5,000 is interest. At the end of February, Hurtt's cash balance is expected to be $14,000. The company must maintain a minimum cash balance of $12,000 as a condition of a longterm loan. Any cash required to maintain the minimum balance can be borrowed in $1,000 increments at a 12 percent annual interest rate. Interest is paid only when principal is repaid. However, it is accrued at the end of every month. Required 1. Prepare Hurtt's cash receipts budget for March. 2. Prepare Hurtt's cash payments for purchases budget for March. 3. Prepare Hurtt's cash budget for March. Hurtt's Java Seeds is an independent roaster of specialty coffee beans. During March, the company plans to sell 10,000 pounds of beans at $12.00 per pound. Internet sales account for 50 percent of total sales and are paid for by customers when they place their orders. Of the remaining 50 percent, threefifths are paid for in the month of sale and twofifths in the month following the sale. In February, roasted coffee bean sales are expected to total $99,600. Hurtt's pays for 40 percent of its green coffee beans in the month of purchase and the remaining 60 percent in the month following the purchase. (Refer to your answer for Unit 5.3 Exercise for March purchases.) February's purchases of green coffee beans are expected to total $25,000. Variable selling and administrative expenses are 20 percent of sales, and fixed administrative expenses are $30,000 per month. Both are paid in the month incurred, as are direct labor costs and manufacturing overhead. In March, Hurtt's must make a $30,000 payment on its longterm loan, of which $5,000 is interest. At the end of February, Hurtt's cash balance is expected to be $14,000. The company must maintain a minimum cash balance of $12,000 as a condition of a longterm loan. Any cash required to maintain the minimum balance can be borrowed in $1,000 increments at a 12 percent annual interest rate. Interest is paid only when principal is repaid. However, it is accrued at the end of every month. Required 1. Prepare Hurtt's cash receipts budget for March. 2. Prepare Hurtt's cash payments for purchases budget for March. 3. Prepare Hurtt's cash budget for March.
Expert Answer:
Answer rating: 100% (QA)
1 Cash Receipts Budget March Internet sales 10000 pounds 1200 per pound 120000 Cash sales 3000 pound... View the full answer
Related Book For
Finance for Executives Managing for Value Creation
ISBN: 9780538751346
4th edition
Authors: Gabriel Hawawini, Claude Viallet
Posted Date:
Students also viewed these accounting questions

The Oil City Company plans to sell an additional 1 million shares of common stock through a rights offering. The company currently has 12 million shares outstanding. Each shareholder will receive one...

Sharp Company manufactures a product for which the following standards have been set: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 3 feet $ 5 per foot $ 15 Direct...

The company plans to raise $500 000 by issuing 10year corporate bonds that pay interest at 6% annually. The cash will be used in the expansion of offices and an equipment base in Windsor, Ontario....

You will act as a senior HR manager of a very large, publicly traded company known as XYZ Inc. The CEO of XYZ Inc. has asked you to prepare an important orientation presentation for the global HR...

Find Fiat's weighted average cost of capital under each of the following scenarios. a. Fiat has a market value debttovalue ratio of 25 percent. The euro riskfree rate is 5 percent. The risk...

Select one city in one of the states or areas mentioned in the case and do an online search of dollar stores within a 5mile radius. Does your research confirm or deny the assertion that dollar...

A construction contract has the following language: It is the responsibility of the contractor to inspect and become familiar with the Project and to acquaint itself thoroughly with all conditions...

Nature Cosmetics Company applies overhead costs on the basis of machine hours. The overhead rate is computed by analyzing data from the previous year to determine the percentage change in costs....

the tuition fee for maths tuition for john is expected to be 6500 per year if he attend tuition for 4 year starting from 4 years from now how much does he have to have in her account which yields 6...

Q1. Use the LIFO costflow assumption to answer the following questions. YEAR 1: Purchase #1 1,000 units @ $1 = $1,000 Purchase #2 1,000 units @ $1 = $1,000 a. How much is goods available for sale?...

Rewrite the iterated integrals in the order dzdyda 11y? 1y S S S f(x,Y, 2)ddzdy 0 0 0 1y2 So So So f(z, Y, z)dzdydx So So = So f(z, Y, z)dzdydz O 1I 1 I So So S f(x, y, z)dzdydx O 1 c1y 1 y? So...

Although, comparing ABC to ordinary cost accounting, ABC is far more intricate and thorough(Reyhanoglu, 2004). Conventional systems combine a large number of expenses into a small number of diverse...

NYC Museum is an arts organization that has a June 30th fiscal yearend close and follows the accrual basis of accounting. Its account balances as of June 30, 2023 were as follows: Cash $150,000...

What is the annual straightline depreciation of a vehicle purchased for $80,919, with a useful life of 7 years that can be sold for $15,636 at the end of its useful life? Round to the nearest whole...

Audit Implications of the New Revenue Reporting Standard A Panel Discussion By CPAJ Staff Featured, February 2019 Issue  March 2019 Get Copyright Permission About the Panelists The panel featured...

What does the article "Accounting of Debt securities in the age of Silicon Valley Bank" (https://www.bostonfed.org//media/Documents/Workingpapers/PDF/2023/sranote2301.pdf) summarizes as a whole...

A simply supported beam is to be constructed by nailing four 1 in. X 6 in. pieces of lumber as shown. The nails are spaced at 0.5 in. in the beam axial direction. The allowable shear stress in the...

What are the three kinds of research types? Explain each type.

Chateau Cheval Noir is one of the leading premium wine producers of France, with its fiftyacre vineyard at St. Julien in the Bordeaux region. The owners have wanted to expand their production, but...

The General Construction Company (GCC) is expecting next year a cash flow from assets of 50 million that is expected to grow forever at 3 percent. Its cost of capital is 11 percent. The firm is...

Although he was initially satisfied by the apparent profitability of the new project, the Avon company's chief executive officer (CEO) was troubled by some other aspects of the project that he...

Let \(X_{1}, \ldots, X_{n}\) be a set of independent and identically distributed random variables from a distribution \(F\) with variance \(\mu_{2}\) where \(E\left(\leftX_{1}ight^{4}ight) a. Prove...

Consider a sequence of independent random variables \(\left\{X_{n}ight\}_{n=1}^{\infty}\) where \(X_{n}\) has probability distribution function \[f_{n}(x)= \begin{cases}2^{(n+1)} &...

Let \(X_{1}, \ldots, X_{n}\) be a set of independent and identically distributed random variables from a shifted exponential density of the form \[f(x)= \begin{cases}\exp [(x\theta)] & \text { for...
Study smarter with the SolutionInn App