P4-12 Cash budget: Advanced The Green PLC has projected following unit sales for Janu- ary 2019 to August 2019. The sales of Green PLC are 30% in cash and the remain- olloo sd der is on a credit for 1 month. It also expects cash receipts from its subsidiaries ds ni borall worth £40,000 in March, £26,000 in April, and £27,000 in June. .000,E 000,0S the following month and the last 40% is paid 2 months later. 202 bos lavn The firm pays 20% in cash for all its purchases. The remaining 40% is paid i Month Sales Purchases w bna don0 ni vlno la ednom auon p ni big ad livw bns ba 0,2 to senni bos lon ybiobo January February 600,000 400,000 350,000 500,000 March 600,000 450,000 April alubare b b 500,000 700,000 475,000 May 300,000 June 800,000 450,000 b. Wi fro Expl July August 750,000 800,000 300,000 350,000 e bud o iadi

P4-12 Cash budget: Advanced The Green PLC has projected following unit sales for Janu- ary 2019 to August 2019. The sales of Green PLC are 30% in cash and the remain- olloo sd der is on a credit for 1 month. It also expects cash receipts from its subsidiaries ds ni borall worth £40,000 in March, £26,000 in April, and £27,000 in June. .000,E 000,0S the following month and the last 40% is paid 2 months later. 202 bos lavn The firm pays 20% in cash for all its purchases. The remaining 40% is paid i Month Sales Purchases w bna don0 ni vlno la ednom auon p ni big ad livw bns ba 0,2 to senni bos lon ybiobo January February 600,000 400,000 350,000 500,000 March 600,000 450,000 April alubare b b 500,000 700,000 475,000 May 300,000 June 800,000 450,000 b. Wi fro Expl July August 750,000 800,000 300,000 350,000 e bud o iadi

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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P4-12 Cash budget: Advanced The Green PLC has projected following unit sales for Janu- ary 2019 to August 2019. The sales of Green PLC are 30% in cash and the remain- der is on a credit for 1 month, It also expects cash receipts from its subsidiaries worth £40,000 in March, £26,000 in April, and £27,000 in June. The firm pays 20% in cash for all its purchases. The remaining 40% is paid in the following month and the last 40% is paid 2 months later. Month Sales Purchases January February 600,000 40,000 500,000 350,000 March 600,000 450,000 April 500,000 700,000 800,000 475,000 May June 300,000 450,000 July August 750,000 s00,000 300,000 350,000 Wages and salaries amount to 25% of the sales in the preceding month. They also need to pay rent of £15,000 every month. The payment for a new machinery will be due in March for £45,000 and will be paid in cash. They have to pay interim tax of £45,000 in May. The firm also expects to pay dividend of £26,000 in March and receive a cash subsidy of…
QUESTION 1You are required to prepare a cash budget for the third quarter of 2020 for STS Corporation.Month Total sales(RM)March 170,000April 100,000May 140,000June 180,000July 200,000AugustSeptemberOctober220,000195,000180,000i) The company makes 10 percent cash sales, and the balance are collected as follows; 60percent is collected one month after sales, 30 percent is collected two months after sales,and 10 percent is collected three months after sales.ii) Purchase of raw materials is 50 percent of sales and are made one month prior to sales.Payment are made equally in the two months after the purchases.iii) Wages and salaries amounting to 10 percent of the last month’s sales. The company fixedmonthly expenses are RM3,000 for rent, RM2,000 for utilities, RM10,000 for depreciation,and RM1,500 for insurance.iv) A quarterly dividend of RM50,000 will be paid at the end of each quarter.v) The company plans to pay RM70,500 in cash for a new machinery installed in August.vi) Ending cash…
REQUIRED Use the information provided below to prepare the Pro-Forma Statement of Comprehensive Income for July and August 2021 (using separate monetary columns for each month). INFORMATION The budgeted Statement of Comprehensive Income of Ryobi Enterprises for the year ended 30 June 2021 is as follows: Sales 3 000 000 Cost of sales (2 000 000) Gross profit 1 000 000 Rent income 108 000 1 108 000 Operating expenses (720 000) Salaries 360 000 Advertising 120 000 Bad debts 60 000 Depreciation Other operating expenses Operating profit Interest expense 30 000 150 000 388 000 (38 000) Net profit 350 000
Case study #3 Hussain Traders LLC is providing the following information. You are required to prepare Cash Budget for the period of 6 months from July to December 2020. All amounts in Rials. Month July August Sales Rent 120,000 6,000 4,000 140,000 7,000 5,000 September 110,000 6,000 7,000 October 130,000 4,000 3,000 November 120,000 6,000 4,000 December 150,000 8,000 5,000 Marketing Expenses Additional information: Salaries 8,000 4,000 5,000 4,000 6,000 7,000 a) Cash sales 50% and the balance in the following month b) Commission received RO 20,000 in the month of November. c) Sale of Fixed Assets in the month of December for RO 5,000 d) Purchase of Printing Machine in September RO 50,000 e) Interest payment to bank RO 40,000 in the month of October f) All other expenses are paid on the 1st of next month. g) Opening Balance for the month of July is RO 50000. Administrative Expenses 1,000 2,000 4,000 3,000 7,000 5,000
Question 3 The Plantd’ Company’s budgeted sales for the first quarter of 2020 are as follows: N$ January 400 000 February 320 000 March 480 000 Total 1 200 000 Credit sales are normally collected as follows: Percent (%) In the month of sale 50 The month following the sale 30 The second month following the month of the sale 20 Total…
Question6: Company wants to prepare a cash budget for May, June, and July. At the end of every month the cash balance will be Rs. 20,000. Determine whether borrowing will be necessary during the period, and if it is, when and for how much. The following information has been provided: As of April 30, the firm had a balance of Rs. 20,000 in cash. Actual Sales Rs. Forecast Sales Rs. January 50,000 May 70,000 February 50,000 June 80,000 March 60,000 July 100,000 April 60,000 August 100,000 50% of total sales are for cash. The remaining will be collected equally during the following two months. Cost of purchases are 70% of sales, 90% of this cost is paid during the first month after incurrence and the remaining 10% is paid in the following month. Dividend of Rs. 10,000 declared on June will be paid in the month of July. Company plans to sell machinery costing Rs. 10,000 at an expected gain of Rs. 5,000 in June. Purchase plant…
From the following forecast of income and expenditure prepare a Cash Budget for the three months ending on May, 20X8 Month Sales ₹ Purchase ₹ Wages ₹ Misc. ₹ Jan 'X8 2,20,000 1,34,000 30,000 17,000 Feb 'X8 2,30,000 1,50,000 32,000 18,000 Mar 'X8 1,80,000 1,54,000 28,000 16,000 Apr 'X8 2,16,000 1,56,000 30,000 22,000 May 'X8 1,88,000 1,30,000 28,000 16,000 Additional Information: (i) Sales:30% realized in the month of sales, discount allowed 2%, balance realized equally in two subsequent months. (ii) Purchases: These are paid in the month following the month of supply (iii) Wages: 30% paid in arrears following month (iv) Misc. Expenses: Paid a month in arrears (v) Rent: ₹2000 per month paid quarterly in advance due, in March (vi) Income Tax: First Instalment of advance tax, ₹30,000 due on or before 15th May to be paid within the month (vii) Income from Investment: ₹15,000 received quarterly in March,…
ABC company Bhd provides the following infor mation in respect of its 3 month cash budget for the year 2019 as showr in the table bel ow. • ABC company Bhd currently has a cash balance of RM40,000 and intends to maintain a minimum cash balance of RM20,000 each month The company can barrow at the beginring of the month in which the funds are needed to maintain the minimun cash balance and the interest an loan is 24% per year. The interest an out standing loan is paid in the month that follows the month in which the loan is dot ained. You are requir ed to complete the 3-month (Oct ober, Novenber, and Decenber) cash budget table for ABC company. Note: Provide answers ONLY far cdaured baxes A to N Month Oct ober November December 1 Beginning cash balance RM40,000 E J Net Change in cash for the period (RM40,200) RV8,604 RM12,240 3 New financing needed A F K 4 Interest an loan В G L 5 Loan repayment H M 6 Ending cash balance 7 Minimumcash balance (RM20,000) (RM20,000) (RV20,000) 2.
A. Prepare the cash budget of Meridian Machine Tools LLC for March to May 2020 from the following information. The company estimates its sales, purchases and other eexpenses as following January February March April Мay Particulars OMR OMR OMR OMR OMR 120,000 180,000 270,000 405,000 180,000 270,000 Sales 80,000 Purchases 60,000 90,000 135,000 Wages Admin -Expenses Selling & Distribution Expenses 18,000 23,000 32,000 45,000 50,000 10,000 20,000 25,000 30,000 35,000 12,000 24,000 36,000 48,000 42,000 The company also provides additional information to its estimates: 1. Cash sale are 20% of total sales; 50% of sales amount is collected in one month and the balance in two months 2. 25% of purchases are made on cash basis; 50% of purchases amount is paid within one month and the balance in two months 3. The time lag in the payments of wages is half (1/2) of the month and that of Admin. Expenses one month; Admin Expenses for each month include deprecation amounting to RO 5,000. 4. 10,000 6%…
A company has the following budgeted sales in each quarter of the year 2024: Expected Sales Q1 Q2 Q3 Q4 Cash collection information is as follows: $240,000 $280,000 $300,000 $420,000 1. Of all sales, 70% are on credit REMBRA 2. 60% of credit sales are collected in the quarter in which the sale is made; 30% are collected in the following quarter, and 10% are collected in the second quarter after the sale. 3. Accounts Receivable is estimated to be $63,000 on December 31,2023. The company expects to collect all outstanding receivabl in the first quarter of 2024. Q. What is the total cash collection for the second quarter of 2024? Answer. (Click to select) (Click to select) None of the answers are correct $231,000 $168,000 $252,000 $315,000
SALES BUDGET – INCLUDING A SCHEDULE OF EXPECTED CASH BUDGETHollow Company manufactures and sells one product only. Following financial information have been obtained for next four quarters of the year 2022: Quarter-1 Quarter-2 Quarter-3 Quarter-4Sales in units 300 400 400 600 Further information• Price will remain for the first and second quarter Rs. 200 and third and fourth quarter Rs. 190 for each product respectively.• Sales at 70% realized in the quarter of sales. Balance 30% realized in the next quarter. Required: A sales budget, including a schedule of expected cash receipts for the year 2022.
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