You have the following information for CM Radio & Co. for the first six months of...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You have the following information for CM Radio & Co. for the first six months of 2012: i. Cost and prices unchanged i1. Cost sales - 25% and credit sales - 75% iii. 60% of credit sales are collected in the month after sales, 30% in the second month and 10% in the third. No bad debts are anticipated iv. Sales forecasts are as follows: October 2011 12, 000, 000 14, 000, 000 16, 000, 000 6, 000, 000 8, 000, 000 March 2012 April 2012 May 2012 8, 000,000 12, 000,000 10, 000, 000 8,000, 000 12, 000, 000 November 2011 December 2011 January 2012 February 2012 June 2012 July 2012 v. Gross profit margin 20% vi. Anticipated purchases: January 2012 February 2012 March 2012 6,400,000 6,400, 000 9,600, 000 8,000, 000 6,400, 000 9,600, 000 April 2012 May 2012 June 2012 vii. Wages and salaries to be paid. January 2012 February2012 March 2012 1,200, 000 1,600, 000 2,000, 000 2,000, 000 1,600, 000 1,400, 000 April 2012 May 2012 June 2012 Interest on $10, 000,000@12% on debentures is due by the end of march and June Excise deposit due in April $2,000,000 Capital expenditure on plant and machinery planned for June S 1, 200, 000 Company can borrow on monthly basis Rent is $ 80,000 per month viii. ix. х. xi. xii. Required: Prepare a cash budget of CM Radio & Co. on the basis of the above information for the first six months of 2012: b. Discuss in detail two alternative budgeting systems of your choice а. You have the following information for CM Radio & Co. for the first six months of 2012: i. Cost and prices unchanged i1. Cost sales - 25% and credit sales - 75% iii. 60% of credit sales are collected in the month after sales, 30% in the second month and 10% in the third. No bad debts are anticipated iv. Sales forecasts are as follows: October 2011 12, 000, 000 14, 000, 000 16, 000, 000 6, 000, 000 8, 000, 000 March 2012 April 2012 May 2012 8, 000,000 12, 000,000 10, 000, 000 8,000, 000 12, 000, 000 November 2011 December 2011 January 2012 February 2012 June 2012 July 2012 v. Gross profit margin 20% vi. Anticipated purchases: January 2012 February 2012 March 2012 6,400,000 6,400, 000 9,600, 000 8,000, 000 6,400, 000 9,600, 000 April 2012 May 2012 June 2012 vii. Wages and salaries to be paid. January 2012 February2012 March 2012 1,200, 000 1,600, 000 2,000, 000 2,000, 000 1,600, 000 1,400, 000 April 2012 May 2012 June 2012 Interest on $10, 000,000@12% on debentures is due by the end of march and June Excise deposit due in April $2,000,000 Capital expenditure on plant and machinery planned for June S 1, 200, 000 Company can borrow on monthly basis Rent is $ 80,000 per month viii. ix. х. xi. xii. Required: Prepare a cash budget of CM Radio & Co. on the basis of the above information for the first six months of 2012: b. Discuss in detail two alternative budgeting systems of your choice а.
Expert Answer:
Answer rating: 100% (QA)
a Cash Budget Cash Budget CM Radio Co six Months Jan 2012june 2012 Jan Feb Mar Apr May Jun Cash Open... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
You have the following information for Bernelli Diamonds. Bernelli Diamonds uses the periodic method of accounting for its inventory transactions. Bernelli only carries one brand and size of...
-
You have the following information for Prospector Gems. Prospector uses the periodic method of accounting for its inventory transactions. Prospector only carries one brand and size of diamondsall are...
-
You have the following information for Gas Saver Plus. Gas Saver Plus uses the periodic method of accounting for its inventory transactions. March 1 Beginning inventory 1,500 litres at a cost of 40...
-
The lower-of-cost-or-net realizable value rule for inventory is an example of the application of: (a) the conservatism convention. (b) the historical cost principle. (c) the materiality concept. (d)...
-
Outline the concept of a cap and trade scheme in relation to CO2 reduction?
-
Veronica is a life insurance agent and she meets with a prospective client, Jason. After the necessary due diligence. Veronica recommends that Jason purchase a participating whole life policy, citing...
-
Chase Publishing Company purchased the copyright to a financial textbook for $\$ 25,000$. Although the author thought the book would serve academia for 10 years, the reality is that the typical life...
-
Government economic data reveals that young adults, not middle-aged or older adults, are having the most difficult time in todays economy. Although the nations labor market shows a decline in the...
-
What role do neuroplasticity and epigenetic modifications play in shaping an individual's susceptibility to stress-related disorders, and how might targeted interventions capitalize on these...
-
bring this packet with you to every class as this is an ongoing problem. Chart of Accounts 11. Cash 31. Jolene Upton, Capital 12. Accounts receivable 14. Supplies 15. Prepaid rent 16 Prepaid...
-
Make the definition of the ellipse by writing the relevant relations and drawing its shape. Prove that B1F1 = B1F2 = a for the ellipse drawn in the figure below.
-
Are all statistically significant findings meaningful? Provide a hypothetical example of a situation where a finding is statistically significant, but not substantively important. can you provide me...
-
Is a undecided major still acceptable these days as far as when you finish school? Do jobs accept that type of degree?
-
Given an unsorted array A of integers of any size, n1, and an integer value x, write an algorithm as a pseudo code (not a program!) that would find out the sum of all elements in the array that have...
-
can you revise this? 1. Thank you for bringing up your concerns. I understand that you may feel like your child isn't learning as much as you would like at school. However, it's important to...
-
Analyze the following code: What is the time complexity? int fun(int n) { int count = 0; for (int i = n; i > 0; i /= 2) for (int j=0; j
-
Balance sheet data for Hanes Company on December 31, the end of the fiscal year, are shown below. 20Y2 20Y1 Current assets 340,890 193,750 Property, plant, and equipment 547,490 511,500 Intangible...
-
You've been asked to take over leadership of a group of paralegals that once had a reputation for being a tight-knit, supportive team, but you quickly figure out that this team is in danger of...
-
Hector Inc. is a retailer operating in British Columbia. Hector uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory; the inventory is...
-
What is the cost of an investment in stock?
-
Konerko Industries had the following transactions. 1. Borrowed $5,000 from the bank by signing a note. 2. Paid $2,500 cash for a computer. 3. Purchased $700 of supplies on account. Instructions (a)...
-
A flow of nitrogen is discharged from a duct with \(M_{2}=0.85, T_{2}=500^{\circ} \mathrm{R}\), and \(p_{2}=28\) psia. The temperature at the inlet is \(560^{\circ} \mathrm{R}\). Compute the pressure...
-
Consider the flow of a perfect gas along a Fanno line. Show that the pressure at the * reference state is given by the relation 1/2 m 2RT, P Ayge(y+1)
-
Air enters a duct with a mass flow rate of \(35 \mathrm{lbm} / \mathrm{sec}\) at \(T_{1}=520^{\circ} \mathrm{R}\) and \(p_{1}=20 \mathrm{psia}\). The duct is square and has an area of \(0.64...
Study smarter with the SolutionInn App