P. Tiro provides you with the following figures: March actual sales April budgeted sales May budgeted...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
P. Tiro provides you with the following figures: March actual sales April budgeted sales May budgeted sales June budgeted saies 42.000 39 000 36 000 25 200 Sales are expected to be 70% credit and 30% cash and iaclude GST. Invoices for credit sales are issued at the end of the monch. Accounts receivable pay: 70% within 30 days of invoice receiving 5% discount. Discount is recognised in the month it is allowed. 20% within 60 days. 5% within 90 days. 5% bad debts. Accounts receivable balances as at 31 March are $47400. The ageing list shows that this balance is dissected as follows: Month of sale 3 600 14 400 29 400 January February March Purchases (GST ipclusive) are paid for in the month in which they ace made. Budgeted purchases are: 24 000 April May June 22 800 12 000 Marketing expenses (GST inclusive) are budgeted at 10% of sales and are paid in the month they are incurred. Ocier expenses are expected to be: April May June 9 000 7 200 10 800 Other expenses are paid in the same month they are incurred and include GST except for depreciation. Depreciation is included in other expenses and is $3 000 per month. Equipment will be paid for on 15 June for $30000 (including GST). GST is accounted for by the cash method. Cash balance at 31 March is S48000. Required Prepare a cash budget for April, May and June showing monthly figures. P. Tiro provides you with the following figures: March actual sales April budgeted sales May budgeted sales June budgeted saies 42.000 39 000 36 000 25 200 Sales are expected to be 70% credit and 30% cash and iaclude GST. Invoices for credit sales are issued at the end of the monch. Accounts receivable pay: 70% within 30 days of invoice receiving 5% discount. Discount is recognised in the month it is allowed. 20% within 60 days. 5% within 90 days. 5% bad debts. Accounts receivable balances as at 31 March are $47400. The ageing list shows that this balance is dissected as follows: Month of sale 3 600 14 400 29 400 January February March Purchases (GST ipclusive) are paid for in the month in which they ace made. Budgeted purchases are: 24 000 April May June 22 800 12 000 Marketing expenses (GST inclusive) are budgeted at 10% of sales and are paid in the month they are incurred. Ocier expenses are expected to be: April May June 9 000 7 200 10 800 Other expenses are paid in the same month they are incurred and include GST except for depreciation. Depreciation is included in other expenses and is $3 000 per month. Equipment will be paid for on 15 June for $30000 (including GST). GST is accounted for by the cash method. Cash balance at 31 March is S48000. Required Prepare a cash budget for April, May and June showing monthly figures.
Expert Answer:
Answer rating: 100% (QA)
March April May June Bad Debts Discounts Sales 42000 39000 36000 25200 Cash sales30 126... View the full answer
Posted Date:
Students also viewed these accounting questions
-
The Ethan Company provides you with the following information on December 31, 2015 as it prepares to close its books for the year Accounts Receivable Balance (before write...
-
The chairman provides you with the following data, covering one year, concerning the portfolios of two of the fund's equity managers (manager A and manager B). Although the portfolios consist...
-
Sales for October, November, and December are expected to be $200,000, $180,000, and $220,000, respectively, for the Gurumai Company. All sales are on account (terms 2/15, net 30 days) and are...
-
A business has the following transactions: The business is started by receiving cash from an investor in exchange for common stock $20,000 The business purchases supplies on account $500 The...
-
Lupulin Limited stocks a variety of sports equipment for sale to institutions. The following stock record card for basketballs was taken from the records at the December 31, 2014 year end: A physical...
-
Rally Corporations management wants to maintain a minimum monthly cash balance of $9,000. At the beginning of September the cash balance is $12,300; expected cash receipts for September are $97,200;...
-
Last year, Token Corporation reported \($1,230,000\) in sales with a cost of goods sold of \($520,000,\) and operating expenses of \($440,000.\) The increase in the firms retained earnings was...
-
John Wills, Bates & Hill Fabricators' budget director, has received budget information from several managers (see Exercises 5-8, 9, 11, 15, 17, 19, 20, 23, and 25) and is preparing the company's cash...
-
Question 1 Which class is needed to read data from the console? Input System Reader Scanner 1 pts
-
The steam cycle of a marine nuclear propulsion plant may be modeled as an ideal Rankine cycle. a . Using the information provided below determine the enthalpy of the working substance in each state....
-
In an income statement where the NIBITDA % is 12.0% and $145,023: calculate the Net Sales in dollars for the retailer: 1,208,525.00 O 162,425.76 164,798.86 O 190,819.74
-
Two alternatives, Alpha and Beta, have the net cash flow (NCF) and salvage value (SV) profiles shown in the table below for their first cycles. Both alternatives can be repeated; however, the cash...
-
Enter the following transactions in the accounts of L. Linda: 2017 July 1 Started in business with 20,000 in the bank. 2 D. Rupert lent us 5,000 in cash. 3 Bought goods on time from B. Brown 1,530...
-
Write up the following transactions in the books of J. Dunn: 2017 May 1 Started in business with cash 30,000. 2 Bought goods on time from T. Lamb 700. 3 Paid rent by cash 1,740. 4 Paid 25,000 of the...
-
Since monetary policy changes made through the fed funds rate occur with a lag, policymakers are usually more concerned with adjusting policy according to changes in the forecasted or expected...
-
These first three sections of the chapter have explained the meaning of a standard and the various different approaches to the creation of a standard. Read the sections again and satisfy yourself...
-
Consider the array A = ( 1 2 , 8 , 7 , 8 , 6 , 5 , 7 , 9 , 7 ) : Draw the corresponding potential binary heap. Is it a max - heap ( YES or NO , with justification ) ?
-
This problem continues the Draper Consulting, Inc., situation from Problem 12-45 of Chapter 12. In October, Draper has the following transactions related to its common shares: Oct 1 Draper...
-
Using what you learned in this chapter of Dessler Human Resource Management, build on the companys new system by recommending two more specific career development activities the hotel should...
-
Many hotel jobs are inherently dead end; for example, maids, laundry workers, and valets, either have no great aspirations to move up, or are just using these jobs temporarily, for instance, to help...
-
Is there another incentive plan you think would work better for the pressers? Describe it.
Study smarter with the SolutionInn App