Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
15th Edition
ISBN: 9780134476315
Author: Chad J. Zutter, Scott B. Smart
Publisher: PEARSON
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Chapter 4, Problem 4.12P
Learning Goal 4
P4-12 Cash budget: Advanced The actual sales and purchases for Xenocore Inc. for September and October 2019, along with its
Wages and salaries amount to 20% of the preceding month’s sales. Rent of $20,000 per month must be paid. Interest payments of $10,000 are due in January and April. A principal payment of $30,000 is also due in April. The firm expects to pay cash dividends of $20,000 in January and April. Taxes of $80,000 are due in April. The firm also intends to make a $25,000 cash purchase of fixed assets in December.
- a. Assuming that the firm has a cash balance of $22,000 at the beginning of November, determine the end-of- month cash balances for each month, November through April.
- b. Assuming that the firm wishes to maintain a $15,000 minimum cash balance, determine the required total financing or excess cash balance for each month, November through April.
- c. If the firm were requesting a line of credit to cover needed financing for the period November to April, how large would this line have to be? Explain your answer.
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BUS 203: INTRODUCTION TO COST AND MANAGEMENT ACCOUNTING PROJECT: CASH BUDGETING ASSOCIATE DEGREE YEAR 2: SEMESTER 1 (2020/21)Ronstadt Limited’s budget for the four months from January to April includes the following data:1. MonthSalesMaterialsWagesOverheads
$000$000$000$000January615115.030360February636120.033390March690135.036420April684130.040425
2. One-third of sales revenue is received one month after sale and the remainder is received two months after sale. The sales in the previous two months were: November $600 000; December $540 000.3. One-quarter of purchases of materials are paid for in the month of purchase. The remainder are paid for two months later. Purchases in the previous two months were: November $108 000; December $106 000.4. Two-thirds of the wages are paid in the month in which they are earned, and the balance is paid in the following month. The wages for the previous December amounted to $30 000.5. One-half of the overhead expenditure is paid in the month in…
QUESTION 4: CASH BUDGET
JL is preparing its cash budget for the next three quarters of the 2019 financial year. The following data have been
extracted from the operating budgets:
Quarter 1
Quarter 2
Quarter 3
R
R
R
Sales revenue
500 000
450 000
480 000
Direct material purchases
138 000
151 200
115 600
Additional information:
a) JL sells 20% of its goods for cash. It is estimated that 70% of all credit sales is received within the quarter in which
the sales are made; and 30% of all credit sales is received in the following quarter. It is estimated that trade
receivables will be R125 000 at the start of Quarter 1. No credit loss is anticipated.
b) All direct material purchases are made on credit. It is estimated that 50% of all direct material purchases are paid in
the quarter of purchase; the remaining 50% is paid in the quarter following the quarter of purchase. It is estimated
that the amount owning for direct material purchases will be R60 000 at the beginning of Quarter 1.
c) JL…
CASH BUDGET
JL is preparing its cash budget for the next three quarters of the 2019 financial year. The following data have been
extracted from the operating budgets:
Quarter 1
Quarter 2
Quarter 3
R
Sales revenue
500 000
450 000
480 000
Direct material purchases
138 000
151 200
115 600
Additional information:
a) JL sells 20% of its goods for cash. It is estimated that 70% of all credit sales is received within the quarter in which
the sales are made; and 30% of all credit sales is received in the following quarter. It is estimated that trade
receivables will be R125 000 at the start of Quarter 1. No credit loss is anticipated.
b) All direct material purchases are made on credit. It is estimated that 50% of all direct material purchases are paid in
the quarter of purchase; the remaining 50% is paid in the quarter following the quarter of purchase. It is estimated
that the amount owning for direct material purchases will be R60 000 at the beginning of Quarter 1.
c) JL pays its labour and…
Chapter 4 Solutions
Gitman: Principl Manageri Finance_15 (15th Edition) (What's New in Finance)
Ch. 4.1 - Prob. 4.1RQCh. 4.1 - Prob. 4.2RQCh. 4.2 - Briefly describe the first four modified...Ch. 4.2 - Describe the overall cash flow through the firm in...Ch. 4.2 - Prob. 4.5RQCh. 4.2 - 4-B Why is depreciation (as well as amortization...Ch. 4.2 - Prob. 4.7RQCh. 4.2 - Prob. 4.8RQCh. 4.2 - Prob. 4.9RQCh. 4.3 - Prob. 4.10RQ
Ch. 4.3 - Prob. 4.11RQCh. 4.3 - Prob. 4.12RQCh. 4.3 - What is the cause of uncertainty in the cash...Ch. 4.4 - Prob. 4.14RQCh. 4.5 - Prob. 4.15RQCh. 4.5 - Prob. 4.16RQCh. 4.6 - Prob. 4.17RQCh. 4.6 - What is the significance of the plug figure,...Ch. 4.7 - Prob. 4.19RQCh. 4.7 - Prob. 4.20RQCh. 4 - Opener-in-Review The chapter opener described a...Ch. 4 - Learning Goals 2, 3 ST4-1 Depreciation and cash...Ch. 4 - Prob. 4.2STPCh. 4 - Prob. 4.3STPCh. 4 - Prob. 4.1WUECh. 4 - Prob. 4.2WUECh. 4 - Learning Goal 3 E4-3 Determine the operating cash...Ch. 4 - Prob. 4.4WUECh. 4 - Learning Goal 5 E4-5 Rimier Corp. forecasts sales...Ch. 4 - Prob. 4.1PCh. 4 - Learning Goal 2 P4-2 Depreciation In early 2019,...Ch. 4 - Prob. 4.3PCh. 4 - Learning Goals 2, 3 P4-4 Depreciation and...Ch. 4 - Learning Goal 3 P4-5 Classifying inflows and...Ch. 4 - Prob. 4.6PCh. 4 - Learning Goal 4 P4-8 Cash receipts A firm has...Ch. 4 - Learning Goal 4 P4-9 Cash disbursements schedule...Ch. 4 - Learning Goal 4 P4-10 Cash budget: Basic Grenoble...Ch. 4 - Prob. 4.11PCh. 4 - Learning Goal 4 P4-12 Cash budget: Advanced The...Ch. 4 - Prob. 4.13PCh. 4 - Prob. 4.14PCh. 4 - Learning Goal 4 P4-15 Multiple cash budgets:...Ch. 4 - Learning Goal 5 P4-16 Pro forma income statement...Ch. 4 - Learning Goal 5 P4-17 Pro forma income statement:...Ch. 4 - Learning Goal 5 P4-18 Pro forma balance sheet:...Ch. 4 - Learning Goal 5 P4-19 Pro forma balance sheet...Ch. 4 - Learning Goal 5 P4-20 Integrative: Pro forma...Ch. 4 - Learning Goal 5 P4-21 Integrative: Pro forma...Ch. 4 - Prob. 4.22PCh. 4 - Prob. 1SE
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