Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale. 3. Accounts Receivable of $68,000 at December 31, 2020 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2021. Direct material is expected to be paid: 4. a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. 11. 12 Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. McGregor makes equal quarterly payments of its estimated annual income taxes. Accounts payable of $25,500 at December 31, 2020 are expected to be paid in full in the second quarter. 13. McGregor wishes to maintain a balance of at least $30,000 in cash. 14. Assume interest of $1,000 in the repayment 15. 16. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31, 2020 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section. Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale. 3. Accounts Receivable of $68,000 at December 31, 2020 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2021. Direct material is expected to be paid: 4. a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. 11. 12 Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. McGregor makes equal quarterly payments of its estimated annual income taxes. Accounts payable of $25,500 at December 31, 2020 are expected to be paid in full in the second quarter. 13. McGregor wishes to maintain a balance of at least $30,000 in cash. 14. Assume interest of $1,000 in the repayment 15. 16. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31, 2020 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section. Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale. 3. Accounts Receivable of $68,000 at December 31, 2020 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2021. Direct material is expected to be paid: 4. a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. 11. 12 Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. McGregor makes equal quarterly payments of its estimated annual income taxes. Accounts payable of $25,500 at December 31, 2020 are expected to be paid in full in the second quarter. 13. McGregor wishes to maintain a balance of at least $30,000 in cash. 14. Assume interest of $1,000 in the repayment 15. 16. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31, 2020 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section. Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale. 3. Accounts Receivable of $68,000 at December 31, 2020 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2021. Direct material is expected to be paid: 4. a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. 11. 12 Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. McGregor makes equal quarterly payments of its estimated annual income taxes. Accounts payable of $25,500 at December 31, 2020 are expected to be paid in full in the second quarter. 13. McGregor wishes to maintain a balance of at least $30,000 in cash. 14. Assume interest of $1,000 in the repayment 15. 16. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31, 2020 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section. Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale. 3. Accounts Receivable of $68,000 at December 31, 2020 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2021. Direct material is expected to be paid: 4. a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. 11. 12 Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. McGregor makes equal quarterly payments of its estimated annual income taxes. Accounts payable of $25,500 at December 31, 2020 are expected to be paid in full in the second quarter. 13. McGregor wishes to maintain a balance of at least $30,000 in cash. 14. Assume interest of $1,000 in the repayment 15. 16. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31, 2020 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section. Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale. 3. Accounts Receivable of $68,000 at December 31, 2020 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2021. Direct material is expected to be paid: 4. a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. 11. 12 Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. McGregor makes equal quarterly payments of its estimated annual income taxes. Accounts payable of $25,500 at December 31, 2020 are expected to be paid in full in the second quarter. 13. McGregor wishes to maintain a balance of at least $30,000 in cash. 14. Assume interest of $1,000 in the repayment 15. 16. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31, 2020 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section. Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale. 3. Accounts Receivable of $68,000 at December 31, 2020 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2021. Direct material is expected to be paid: 4. a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. 11. 12 Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. McGregor makes equal quarterly payments of its estimated annual income taxes. Accounts payable of $25,500 at December 31, 2020 are expected to be paid in full in the second quarter. 13. McGregor wishes to maintain a balance of at least $30,000 in cash. 14. Assume interest of $1,000 in the repayment 15. 16. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31, 2020 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section. Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale. 3. Accounts Receivable of $68,000 at December 31, 2020 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2021. Direct material is expected to be paid: 4. a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. 11. 12 Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. McGregor makes equal quarterly payments of its estimated annual income taxes. Accounts payable of $25,500 at December 31, 2020 are expected to be paid in full in the second quarter. 13. McGregor wishes to maintain a balance of at least $30,000 in cash. 14. Assume interest of $1,000 in the repayment 15. 16. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31, 2020 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section.
Expert Answer:
Answer rating: 100% (QA)
1 Cash budget Particulars Quarter 1 Quarter 2 Quarter 3 Quarter 4 Beginning cash balance 60000 10000... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
Students also viewed these accounting questions
-
The real risk-free rate is 3%. Inflation is expected to be 2% this year and 4% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 2-year Treasury securities?...
-
The PW value for an alternative is expected to be one of two values based on bids from two vendors. Your office partner told you that the low bid is $3200 per year. If she indicates a chance of 70%...
-
The US inflation rate is expected to be Rs.3 per cent annually and that of India is expected to be 4.5 per cent annually. The current spot rate of US $ in India is Rs.47.4060/US $.Find the expected...
-
a) Verify the above differential equation is not exact. b) Find an integrating factor that will make the differential equation exact. Verify your work. c) Solve the differential equation (implicit...
-
Explain the difference between job simplification and job expansion.
-
Coca-Cola markets PowerAde as a sports drink that competes with Gatorade. Competition for sports drinks is fierce where they are sold in the coolers of convenience stores. Coca-Cola is thinking about...
-
Thomas Rusnack and his then-wife, Analisa Rusnack, opened a home equity line of credit (HELOC) with Cardinal Bank in August 2003. Between 2003 and 2006, the Rusnacks periodically drew on the HELOC...
-
Ignatenko's Custom Electronics (ICE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing....
-
In its simplest form, profit is: Fixed costs - Depreciation - Interest = Profit Sales/Turnover - Variable costs/Used goods = Profit (Actual retail price - cost)/ Actual retail price = Profit (Price -...
-
Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Required a. What number must Grove Audio sell annually to break...
-
You have a stock solution certified by a manufacturer to contain 150.0 z 0.3 mg SO42- /mL. You would like to dilute it by a factor of 100 to obtain 1.500 mg SO42- /mL. Two possible dilution methods...
-
There are several classes of stock discussed this week. Describe how each type of stock is different and the stockholders' rights associated with each. Discuss how corporations use stocks to raise...
-
suggest statements of understanding, applying, analyzing, evaluating, and creating for the following: I can process financial data for up to 10 million dollars in revenue sales; Well enough to...
-
The judge knows relatively little about each case. Group of answer choices True False
-
Attempt a fundamental evaluation of Torrington on a standalone basis
-
What are the cost elements in EOQ? Question 5Answer a. Heating costs, obsolescence, and theft b. Shrinkage, gross stock errors, and net stock errors. c. Holding costs and shipping costs d. Shipping...
-
18. Assume a large open economy is defined by the following equations: Y = C+I+G + NX C = 0.5 (Y T) I = 1500 250r NX: T = 1000 M P M G = 1500 NCO = 500 250r = 1000 - 250e NX = NCO = = : 0.5Y - 500r...
-
a. What is meant by the term tax haven? b. What are the desired characteristics for a country if it expects to be used as a tax haven? c. What are the advantages leading an MNE to use a tax haven...
-
Explain briefly the dividend irrelevance theory that was put forward by Modigliani and Miller. What were the key assumptions underlying their theory?
-
Investors expect a company to announce a 10% increase in earnings; instead, the company announces a 1% increase. If the market is semi-strong form efficient, which of the following would you expect...
-
Walter Industries has $5 billion in sales and $1.7 billion in fixed assets. Currently, the companys fixed assets are operating at 90% of capacity. a. What level of sales could Walter Industries have...
-
At a point \(P\) in a body, Cartesian stress components are given by \(\sigma_{x x}=80 \mathrm{MPa}, \sigma_{y y}=-40\) \(\mathrm{MPa}, \sigma_{z z}=-40 \mathrm{MPa}\), and \(\tau_{x y}=\tau_{y...
-
Find the principal stresses and the orientation of the principal axes of stresses for the following cases of plane stress. a. \(\sigma_{x x}=40 \mathrm{MPa}, \sigma_{y y}=0 \mathrm{MPa}, \tau_{x...
-
Determine the principal stresses and their associated directions, when the stress matrix at a point is given by 11 1 [6]=112 MPa. [121]
Study smarter with the SolutionInn App