The accountant for Rooney's Dress Shop prepared the following cash budget. Rooney's desires to maintain a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The accountant for Rooney's Dress Shop prepared the following cash budget. Rooney's desires to maintain a cash cushion of $17,000 at the end of each month. Funds are assumed to be borrowed and repaid on the last day of each month. Interest is charged at the rate of 3 percent per month. Required a. Complete the cash budget by filling in the missing amounts. b. Determine the amount of net cash flows from operating activities Rooney's will report on the third quarter pro forma statement of cash flows. c. Determine the amount of net cash flows from financing activities Rooney's will report on the third quarter pro forma statement of cash flows. Complete this question by entering your answers in the tabs below. Req A Req B and C Complete the cash budget by filling in the missing amounts. (Any shortages or repayments should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) Cash Budget July August September Section 1: Cash receipts Beginning cash balance S 49,000 Add cash receipts 193,000 213,000 253,600 Total cash available 242,000 Section 2: Cash payments For inventory purchases 172,026 146,730 180,652 For S&A expenses 61,000 67,060 67,932 For interest expense 0 Total budgeted disbursements 233,026 Section 3: Financing activities Surplus (shortage) Borrowing (repayments) Ending cash balance 8,974 8,026 S 17,000 $ 0 $ < Req A Req B and C > Complete this question by entering your answers in the tabs below. Req A Req B and C Determine the amount of net cash flows from both operating and financing activities Rooney's will report on the third quarter pro forma statement of cash flows. (Round intermediate calculations and final answers to the nearest whole dollar amount.) Net cash (operating activities) Net cash (financing activities) < Req A Req B and C > The accountant for Rooney's Dress Shop prepared the following cash budget. Rooney's desires to maintain a cash cushion of $17,000 at the end of each month. Funds are assumed to be borrowed and repaid on the last day of each month. Interest is charged at the rate of 3 percent per month. Required a. Complete the cash budget by filling in the missing amounts. b. Determine the amount of net cash flows from operating activities Rooney's will report on the third quarter pro forma statement of cash flows. c. Determine the amount of net cash flows from financing activities Rooney's will report on the third quarter pro forma statement of cash flows. Complete this question by entering your answers in the tabs below. Req A Req B and C Complete the cash budget by filling in the missing amounts. (Any shortages or repayments should be indicated with a minus sign. Round your answers to the nearest whole dollar amount.) Cash Budget July August September Section 1: Cash receipts Beginning cash balance S 49,000 Add cash receipts 193,000 213,000 253,600 Total cash available 242,000 Section 2: Cash payments For inventory purchases 172,026 146,730 180,652 For S&A expenses 61,000 67,060 67,932 For interest expense 0 Total budgeted disbursements 233,026 Section 3: Financing activities Surplus (shortage) Borrowing (repayments) Ending cash balance 8,974 8,026 S 17,000 $ 0 $ < Req A Req B and C > Complete this question by entering your answers in the tabs below. Req A Req B and C Determine the amount of net cash flows from both operating and financing activities Rooney's will report on the third quarter pro forma statement of cash flows. (Round intermediate calculations and final answers to the nearest whole dollar amount.) Net cash (operating activities) Net cash (financing activities) < Req A Req B and C >
Expert Answer:
Answer rating: 100% (QA)
a Complete the cash budget by filling in the missing amounts Cash Budget July August September Secti... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
Posted Date:
Students also viewed these accounting questions
-
The accountant for Ericas Dress Shop prepared the following cash budget. Ericas desires to maintain a cash cushion of $20,000 at the end of each month. Funds are assumed to be borrowed and repaid on...
-
Three partners. Ankamah, Kofi and David share profit and losses in the ratio 5: 3:2 for the year ending 31/12/2016. The profit generated from either business is $600,000. Partners' contributions are...
-
This chapter discussed the free-rider problem. Consider the following two situations in relation to the free-rider concept. a. The Taft-Hartley Act (1947) allows workers to be employed at a firm...
-
Consider the following SQL query that seeks to find a list of titles of all courses taught in Spring 2017 along with the name of the instructor. select name, title from instructor natural join...
-
How do you classify kinematic pairs? Illustrate with examples.
-
During the year, Xero, Inc., experienced an increase in net fixed assets of $300,000 and had depreciation of $200,000. It also experienced an increase in current assets of $150,000 and an increase in...
-
Compute lim x = Number x40+
-
Assume that there are only two shareholders in a company; the controlling shareholder holds 90% of the equity shares of the company whilst the other non-controlling shareholder holds the remaining...
-
Chang Industries purchased a piece of equipment on January 1, 2025. The equipment cost HK\($600,000\) and has an estimated life of 8 years and a residual value of HK\($80,000.\) What was the...
-
According to an observer at rest in the Earth reference frame, ship A travels in one direction at speed \(0.862 c_{0}\) while ship B moves in the opposite direction at \(0.717 c_{0}\). Ship A sends...
-
Some writers of fiction have placed human beings on asteroids or other "planetoids" whose radius, in the illustrations accompanying the stories, seems not too much greater than the height of the...
-
Observer \(\mathrm{O}\) at the origin of a coordinate system is at rest relative to two equidistant space stations located at \(x=+3.00 \times 10^{6} \mathrm{~km}\left( ight.\) station A) and...
-
Charles Cook, an investor, is considering two financing plans for purchasing a parcel of real estate costing \($50,000.\) Alternative X involves paying cash; alternative Y involves obtaining 80%...
-
What common views do you have Attitudes towards People with Disability? What areas of difference? Discuss the basics for your differences of opinion.
-
Funds are separate fiscal and accounting entities, each with its own self-balancing set of accounts. The newly established Society for Ethical Teachings maintains two funds-a general fund for...
-
What are the gears used for intersecting shafts?
-
A pinion of involute profile has 25 teeth and \(150 \mathrm{~mm}\) pitch circle diameter. It drives a rack. The addendum of both pinion and rack is \(6.25 \mathrm{~mm}\). Calculate the least pressure...
-
The path of contact in involute gears is (a) a straight line (b) involute path (c) curved path (d) circle.
Study smarter with the SolutionInn App