Kowanaso Limited was incorporated some years ago. The financial position as at 31st December, 2019 was...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Kowanaso Limited was incorporated some years ago. The financial position as at 31st December, 2019 was as follows: EQUITY AND LIABILITIES Stated capital: Ordinary share [40,000 at GHC12.50 each] Preference shares [20,000 at GHC8.00 each] Long term capital NON-CURRENT ASSETS Building and Land Equipment Motor Vehicles CURRENT ASSETS Inventory Accounts Receivables Cash at bank CURRENT LIABILITIES Accounts payable TOTAL ASSETS GH¢ 40,000 20,000 124,000 184,000 (14,000) January February March April May June GH¢ 500,000 160,000 660,000 140,000 800,000 400,000 182,000 48,000 630,000 The Company has produced the following estimates: 1) The accounts payable figure of GHe 14,000 stated in the financial statement would be 5 170,000 800,000 paid in January, 2020. The following credit purchases are settled a month after the month of purchase, after deducting two percent (2%) discount. Required: Prepare a monthly Cash Budget for Kowanaso Ltd for January 2020 to June 2020. GH¢ 28,000 42,000 36,000 45,000 41,000 37,000 2) Sales for January will be GHé51,300 and will increase at the rate of 20% per month until March. In April, sales will rise to GH 80,000 and this will rise by 10% per month thereafter. Sales will be divided equally between cash and credit sales. Credit customers are expected to pay two months after the sales.70% of sales will be generated by sales agents who will receive 10% commission on sales. The commission is payable one month after the sales. 3) The company intends to purchase further equipment in August for GH 45,000. However, a deposit of 20% is supposed to be made in June. 5/10 4) Accounts receivable as at 31/12/2010 will be settled in January, 2020. 5) Other overheads will be GH 6,500 per month for the first three months and GH 8,400 thereafter. Wages and salaries will be GH146,000 per month. Both types of expense will be payable when incurred. 6) Depreciation is to be provided at the rate of 10% per annum on land and building and 20% per annum on equipment (depreciation has not been included in the overheads mentioned above). Kowanaso Limited was incorporated some years ago. The financial position as at 31st December, 2019 was as follows: EQUITY AND LIABILITIES Stated capital: Ordinary share [40,000 at GHC12.50 each] Preference shares [20,000 at GHC8.00 each] Long term capital NON-CURRENT ASSETS Building and Land Equipment Motor Vehicles CURRENT ASSETS Inventory Accounts Receivables Cash at bank CURRENT LIABILITIES Accounts payable TOTAL ASSETS GH¢ 40,000 20,000 124,000 184,000 (14,000) January February March April May June GH¢ 500,000 160,000 660,000 140,000 800,000 400,000 182,000 48,000 630,000 The Company has produced the following estimates: 1) The accounts payable figure of GHe 14,000 stated in the financial statement would be 5 170,000 800,000 paid in January, 2020. The following credit purchases are settled a month after the month of purchase, after deducting two percent (2%) discount. Required: Prepare a monthly Cash Budget for Kowanaso Ltd for January 2020 to June 2020. GH¢ 28,000 42,000 36,000 45,000 41,000 37,000 2) Sales for January will be GHé51,300 and will increase at the rate of 20% per month until March. In April, sales will rise to GH 80,000 and this will rise by 10% per month thereafter. Sales will be divided equally between cash and credit sales. Credit customers are expected to pay two months after the sales.70% of sales will be generated by sales agents who will receive 10% commission on sales. The commission is payable one month after the sales. 3) The company intends to purchase further equipment in August for GH 45,000. However, a deposit of 20% is supposed to be made in June. 5/10 4) Accounts receivable as at 31/12/2010 will be settled in January, 2020. 5) Other overheads will be GH 6,500 per month for the first three months and GH 8,400 thereafter. Wages and salaries will be GH146,000 per month. Both types of expense will be payable when incurred. 6) Depreciation is to be provided at the rate of 10% per annum on land and building and 20% per annum on equipment (depreciation has not been included in the overheads mentioned above).
Expert Answer:
Related Book For
Financial Accounting for Decision Makers
ISBN: 978-0273763451
6th Edition
Authors: Peter Atrill, Eddie McLaney
Posted Date:
Students also viewed these accounting questions
-
Prepare a monthly sales budget for the current year, assuming that monthly sales volume (i.e., mechanic hours) will be 10 percent greater than it was in the same month last year.
-
Estimated sales January February March April May Total Coffee sales (units) 15,000 16,000 18,000 17,500 14,500 Your friend, Chris Coffee, has been running a successful coffee shop for the last couple...
-
Prepare the consolidation statement of financial position as at 31 December 20X0 of Ala Ltd and its subsidiaries. The following are the summarised statements of financial position of a group of...
-
How does the range of hFE (Fig. 3.23j, normalized from hFE = 100) compare with the range of hfe (Fig. 3.23f) for the range of IC from 0.1 to 10 mA?
-
Splinter Company forecasts sales of 6,000 units for April. Beginning inventory is 1,000 units. The desired ending inventory is 30% higher than the beginning inventory. How many units should Splinter...
-
The General Social Survey (GSS) has been collecting demographic, behavioral, and attitudinal information since 1972 to monitor changes within the US and to compare the US to other nations. Support...
-
The breaking strength of hockey stick shafts made of two different graphite-kevlar composites yields the following results (in newtons). Can you conclude that the standard deviation of the breaking...
-
Duval Manufacturing recently reported the following information: Net income $600,000 ROA 8% Interest expense $225,000 Duvals tax rate is 35%. What is its basic earning power (BEP)?
-
Assume the following information: 360day U.S. interest rate = 4% 360day British interest rate = 5% 360day forward rate of British pound = $2.00/ Spot rate of British pound = $2.02/ Hampshire Co. has...
-
The following is the statement of financial position of Rasheed Brothers Corporation (amounts in thousands). Instructions Evaluate the statement of financial position presented. State briefly the...
-
C# PLEASE Lab9B: Binary Bubbles. Binary search is a very fastsearching algorithm, however it requires a set of numbers to besorted first. Lab9B: Binary Bubbles. Binary search is a very fast searching...
-
You are making a $120,000 investment and feel that a 22% rate of return is reasonable, given the nature of the risks involved. You expect to receive $48,000 in the first year, $54,000 in the second...
-
U . S . tax liability ( before reductions for the foreign tax credit ) is $ 1 2 0 , 7 5 0 . Requirement What is Halo's foreign tax credit? What is Halo's foreign tax credit carryback or carryover?...
-
The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: Units to be produced 1st Quarter 2nd Quarter 3rd...
-
Lindon Company is the exclusive distributor for an automotive product that sells for $32.00 per unit and has a CM ratio of 30%. The company's fixed expenses are $177,600 per year. The company plans...
-
Rios Co . Is a regional insurance company that began operations on January 1 , 2 0 V 2 . The following selected transactions relate to investments acquired by Rios Co , which has a fiscal year ending...
-
What does a negative net export indicate? O a. A country is experiencing a trade surplus O b. A country is importing more goods and services than it is exporting O c. A country is not engaged in...
-
Calculate the change in entropy when 100 kJ of energy is transferred reversibly and isothermally as heat to a large block of copper at (i) 0 C, (ii) 50 C.
-
The following financial statements for Blackstone plc are a slightly simplified set of published accounts. Blackstone plc is an engineering business that developed a new range of products in 2007....
-
In respect of each of the following transactions, state in which two accounts an entry must be made and whether the entry is a debit or a credit. (For example, if the transaction were buying...
-
While on holiday in Bridlington, Helen had her credit cards and purse stolen from the beach while she was swimming. She was left with only 40, which she had kept in her hotel room, but she had three...
-
Expand \((\vec{V} \cdot abla) \vec{V}\) in cylindrical coordinates by direct substitution of the velocity vector to obtain the convective acceleration of a fluid particle. Verify the results given in...
-
Consider a flow field represented by the stream function \(\psi=3 x^{5} y-10 x^{3} y^{3}+3 x y^{5}\). Is this a possible two-dimensional incompressible flow? Is the flow irrotational?
-
Consider the velocity field for flow in a rectangular "corner," \(\vec{V}=A x \hat{i}-A y \hat{i}\), with \(A=0.3 \mathrm{~s}^{-1}\), as in Example 5.8. Evaluate the circulation about the unit square...
Study smarter with the SolutionInn App