Tracy is preparing her budget for next year and needs your assistance. Now that she has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Tracy is preparing her budget for next year and needs your assistance. Now that she has a better idea of what to expect now that she is in business full time, we want to begin having some of her ingredients in stock to avoid not being able to get the ingredients on time. She is ready to prepare her budget for the first four months of 2021. She believes she will sell the following number of cupcakes each month: Month # of cupcakes All cupcakes are sold each month and she has no beginning or ending cupcake inventory. January February March April 7650 7150 - 8150 7250 Tracy would like for you to create a cash collections budget if she sells each cupcake for $3.05 each. She anticipates that 75% of her sales will be cash sales and the remaining 25% will be on account. Of the 25% on account, she believes she will receive 65% the month of sales and 35% the second month. The beginning accounts receivable is $1,950. Lastly, she would like for you to create a direct materials budget. She would like to keep 10% of next month's ingredient inventory on hand at the end of each month. Each cupcake uses 5.5 oz. of material and the cost per ounce is $0.09. Her inventory on January 1 is 3,650 oz. and her presumed ending inventory on April 30h is 3,200 oz. She pays for all materials in the month of purchase. Please complete a Direct Materials Budget and an Expected Cash Disbursement for Materials. Prepare a one page paper where you give Tracy the requested budgets and explain how you determined the amounts. Remember: Write the paper to Tracv as a business document. Tracy is preparing her budget for next year and needs your assistance. Now that she has a better idea of what to expect now that she is in business full time, we want to begin having some of her ingredients in stock to avoid not being able to get the ingredients on time. She is ready to prepare her budget for the first four months of 2021. She believes she will sell the following number of cupcakes each month: Month # of cupcakes All cupcakes are sold each month and she has no beginning or ending cupcake inventory. January February March April 7650 7150 - 8150 7250 Tracy would like for you to create a cash collections budget if she sells each cupcake for $3.05 each. She anticipates that 75% of her sales will be cash sales and the remaining 25% will be on account. Of the 25% on account, she believes she will receive 65% the month of sales and 35% the second month. The beginning accounts receivable is $1,950. Lastly, she would like for you to create a direct materials budget. She would like to keep 10% of next month's ingredient inventory on hand at the end of each month. Each cupcake uses 5.5 oz. of material and the cost per ounce is $0.09. Her inventory on January 1 is 3,650 oz. and her presumed ending inventory on April 30h is 3,200 oz. She pays for all materials in the month of purchase. Please complete a Direct Materials Budget and an Expected Cash Disbursement for Materials. Prepare a one page paper where you give Tracy the requested budgets and explain how you determined the amounts. Remember: Write the paper to Tracv as a business document.
Expert Answer:
Answer rating: 100% (QA)
Dear Tracy Based on the information you provided for the first 4 months of 2021 I have worked out and presented here both Cash Collections Budget and ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Delia, Inc. is preparing a budget for next year and requires a breakdown of the cost of steam used in its factory into fixed and variable components. The following data on the cost of steam used and...
-
The Global Growth Corporation is planning for next year and wants you to help them prepare a Pro Forma Balance Sheet for 2015.Their current Balance Sheet is shown below along with some pre-determined...
-
The Global Growth Corporation is planning for next year and wants you to help them prepare a Pro Forma Balance Sheet for 2011. Their current Balance Sheet is shown below along with some...
-
Consider a cube that has 5cm length sides. What is the surface area to volume ratio of this cube? Report your answer in cm/cm Report your answer to one decimal place. QUESTION 12 Consider a cube that...
-
Why do we study the reversed Carnot cycle even though it is not a realistic model for refrigeration cycles?
-
A company has the following transactions during the month of February. February 2 Pay $510 for radio advertising for February. February 7 Purchase beauty supplies of $1,110 on account. February 14...
-
Specifically, we examine the 2004 Survey of Consumer Finances (SCF), a nationally representative sample that contains extensive information on assets, liabilities, income, and demographic...
-
SWAT Team Surplus began July with 66 tents that cost $23 each. During the month, SWAT Team Surplus made the following purchases at cost: Jul 4 105 tents @ $25 = $2,625 19 157 tents @ $27 = 4,239 25...
-
Use BYD Auto digital marketing strategies to answer the following questions in details; Take the role of marketing consultants who have been hired to design a digital strategy for Pearl River Piano...
-
In this exercise you will be assuming the role of an Account Manager working within our Personal Care Appliances category during Amazon Black Friday. You act as a general manager responsible for...
-
(a) Two biochemical reactors connected in series in a process plant; What is the material balance for the process? How is the dilution related to substrate in the first tank? and How is dilution...
-
Use the following information in the table below to answer the questions that follow: Project A Project B Project C Initial Investment R 100 000,00 R 150 000,00 R 175 000,00 CF Year 1 R 48 000,00 R...
-
Discuss the relative performance of your individual investments. Investment Name Investment Ticker Return META PLATFORMS META 76.1% APPLE AAPL 27.1% TESLA TSLA 68.4% THE PROCTER & GAMBLE COMPANY PG...
-
An Avocado farmer is thinking about hedging his farm produce in the derivatives market. He has heard of but unfamiliar with forwards and futures contracts. Please advise on how he could set up a...
-
Identify three factors that might cause the auditors to assess the inherent risk of an engagement at a higher level.
-
In a 'XYZ' Bank, the loan department needs to predict if the customer will apply for * a housing loan or not. Given past data of customers. Identify the feature which would be the split note in...
-
The Smart Company uses job order costing. At the end of June 2023, three jobs started in June were still in process: Job AB 10 Job KL 20 Job YZ 30 Direct Materials 1,500 1,300 2,200 Direct Labor...
-
Evaluate the line integral, where C is the given curve. C x 2 dx + y 2 dy, C consists of the arc of the circle x 2 + y 2 = 4 from (2, 0) to (0, 2) followed by the line segment from (0, 2) to (4, 3)
-
Given the information below, estimate the nominal rate with the approximation nominal interest rate equation and the true nominal interest rate equation. True Nominal Approximate Rate Real Rate...
-
Complete the balancesheet Partial Income Statement Year Ending 2011 Sales Revenue COGS Fixed Costs SG&A Expenses Depreciation S350,000 $140,000 S43,000 S 28,000 S46,000 Partial Balance Sheet...
-
Bruce Wayne is going public with his new business. Berkman Investment Bank will be his banker and is doing a best-efforts sale with a 4% commission fee. Wayne has been authorized 5,000,000 shares for...
-
The average tax rate on a corporate income of \(\$ 87,000\) is closest to which of the following? a. 15 percent b. 20.5 percent c. 25 percent d. 34 percent
-
True or False: If investment capital is borrowed, the income tax rate equals \(40 \%\), the after-tax MARR is \(12 \%\), and the loan rate is \(10 \%\), then it is best to repay the loan using Plan 4.
-
Calculate the corporate income tax for each of the following corporate taxable incomes. For each, determine the effective (average) tax rate and the marginal tax rate. a. $22,000 b. $93,000 c....
Study smarter with the SolutionInn App