The ShireLodge provides a residential convention service in England's Yorkshire Dales. The lodge's general manager is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The ShireLodge provides a residential convention service in England's Yorkshire Dales. The lodge's general manager is concerned about cash flow in the next few months particularly as insurance will soon be due for payment. The following revenue and expense estimates have been developed for the first four months of 2023, Convention sales revenue Fixed costs: Salaries Ground maintenance Insurance January 10.000 4.000 500 420 February 12.000 4.000 500 420 March 13.000 4.000 500 420 It has been estimated that sales in December 2022 will be £8,000. Previous cash collections indicate that 10 per cent of all ales are collected in the month prior to the sale as a deposit. Then, 50 per cent of all sales are collected in the month of the sale, and 40 per cent of sales are collected in the month following the sale. Variable costs are 15 per cent of revenue. Ninety per cent of variable costs are paid in April 14.000 4.000 500 420 Quiz nav 1 2 Finish att Time left Convention sales revenue Fixed costs: Salaries Ground maintenance Insurance 10.000 4.000 500 420 12.000 4.000 500 420 13.000 4.000 500 420 It has been estimated that sales in December 2022 will be £8,000. Previous cash collections indicate that 10 per cent of all ales are collected in the month prior to the sale as a deposit. Then, 50 per cent of all sales are collected in the month of the sale, and 40 per cent of sales are collected in the month following the sale. Variable costs are 15 per cent of revenue. Ninety per cent of variable costs are paid in the month of the sale to which they relate, and the remainder 10 per cent are paid in the month prior to the sale (purchase of some food and other items in preparation for conventions). Salary and ground maintenance fixed cost are paid for as they are incurred. Insurance is paid for twice year, in January and July. It is estimated that on 1st January 2023 the lodge will have £4.200 in its bank account, Prepare a cash budget showing receipts, payments, and opening and closing cash balances for each of the first three months of 2023. April 14,000 4.000 500 420 Time left 0:51: The ShireLodge provides a residential convention service in England's Yorkshire Dales. The lodge's general manager is concerned about cash flow in the next few months particularly as insurance will soon be due for payment. The following revenue and expense estimates have been developed for the first four months of 2023, Convention sales revenue Fixed costs: Salaries Ground maintenance Insurance January 10.000 4.000 500 420 February 12.000 4.000 500 420 March 13.000 4.000 500 420 It has been estimated that sales in December 2022 will be £8,000. Previous cash collections indicate that 10 per cent of all ales are collected in the month prior to the sale as a deposit. Then, 50 per cent of all sales are collected in the month of the sale, and 40 per cent of sales are collected in the month following the sale. Variable costs are 15 per cent of revenue. Ninety per cent of variable costs are paid in April 14.000 4.000 500 420 Quiz nav 1 2 Finish att Time left Convention sales revenue Fixed costs: Salaries Ground maintenance Insurance 10.000 4.000 500 420 12.000 4.000 500 420 13.000 4.000 500 420 It has been estimated that sales in December 2022 will be £8,000. Previous cash collections indicate that 10 per cent of all ales are collected in the month prior to the sale as a deposit. Then, 50 per cent of all sales are collected in the month of the sale, and 40 per cent of sales are collected in the month following the sale. Variable costs are 15 per cent of revenue. Ninety per cent of variable costs are paid in the month of the sale to which they relate, and the remainder 10 per cent are paid in the month prior to the sale (purchase of some food and other items in preparation for conventions). Salary and ground maintenance fixed cost are paid for as they are incurred. Insurance is paid for twice year, in January and July. It is estimated that on 1st January 2023 the lodge will have £4.200 in its bank account, Prepare a cash budget showing receipts, payments, and opening and closing cash balances for each of the first three months of 2023. April 14,000 4.000 500 420 Time left 0:51:
Expert Answer:
Answer rating: 100% (QA)
Based on the information provided we are asked to prepare a cash budget showing receipts payments and opening and closing cash balances for each of th... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
Students also viewed these finance questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The City of Smithville created a Street Improvement Bond Debt Service Fund to be used to retire the bonds issued for the purposes described in Chapter 5 of this cumulative problem, and to pay the...
-
8. Describe each of the following types of isomerism (i) geometrical isomerism (2 marks) (ii) solavate isomerism (2 marks) (iii) coordination isomerism (2 amrks)
-
A quality control effort is being attempted for a process where large steel plates are being manufactured and surface defects are of concern. The goal is to set up a quality control chart for the...
-
What should an organization use if it wants to ensure it can continue mission-critical operations in the event of a disaster? A. BIA B. BCP C. DRP D. BCC
-
An electric motor of mass \(500 \mathrm{~kg}\) operates on the first floor of a building frame that can be modeled by a steel girder supported by two reinforced concrete columns, as shown in Fig....
-
The MBA program at Westmore University has undergone several dramatic changes over the past five years. During this time, the goal of the business school was to recruit as many students as possible...
-
On July 1, X5, Balado lte paid $600,000 to acquire 10,000 common voting shares of the investee lte, representing a 6% stake. Balado Inc. then designates its investment the JV through profit and loss...
-
Figure 4-38 includes an EER diagram for a medium-size software vendor. Transform the diagram into a relational schema that shows referential integrity constraints (see Figure 4-5 for an example of...
-
How much heat is released when 105 mL of 1.55M HCI is mixed with 195 mL of 0.685M NaOH?
-
graph the hyperbola. Find the center, the lines which contain the transverse and conjugate axes, the vertices, the foci and the equations of the asymptotes. x2 y 1. = 1 16 9
-
Consider a function f: Nx N N given by f(x, y) = 37". For what natural n, is 21.5"-3 in the image of f? Enter the numerical value.
-
Given the polynomial: f(x)=-3x - 4x + 2, find the range of polynomial.
-
A tennis ball follows a path described by the function h(d) 144(d-12)+2, where h is the height of the ball above the court and d is the horizontal distance of the ball from the tennis player, both in...
-
Find the inverse function of f informally. f(x) = x-5, x 20 f-1(x) =
-
MJ Ltd. Manufactures and sells four product lines - North, South, East and West. The sales mix in terms of revenue comprises of the following: Product Line Percentage North 33.33% South 41.67% East...
-
5. Convert the following ERD to a relational model. SEATING RTABLE Seating ID Nbr of Guests Start TimeDate End TimeDate RTable Nbr RTable Nbr of Seats RTable Rating Uses EMPLOYEE Employee ID Emp...
-
What are the objectives of governmental reporting?
-
The controller for Saskatoon Potash Inc. has determined that her company has five identifiable segments under IFRS 8. She has gathered the following information on those segments: Required Identify...
-
A capital asset is sold by a subsidiary to its parent company at the assets fair market value, which is less than the assets carrying value on the subsidiarys books. Would the unrealized loss on the...
-
A W14 \(\times 30\) structural A992 steel column is pin connected at is ends and has a length \(L=12 \mathrm{ft}\). Determine the maximum eccentric load \(P\) that can be applied so the column does...
-
A W16 \(\times 45\) structural A992 steel column is fixed at the base and free at the top and has a length \(L=8 \mathrm{ft}\). Determine the maximum eccentric load \(P\) that can be applied so the...
-
Determine the \(\operatorname{load} P\) required to cause the steel \(\mathrm{W} 12 \times 50\) structural A-36 steel column to fail either by buckling or by yielding. The column is fixed at its...
Study smarter with the SolutionInn App