Exercise 7 (Cash Budget Analysis)A cash budget, by quarters, is given below for a retail company (000 omitted).The company requires a minimum cash balance of P5,000 to start each quarter.Quarter34YearCash balance, beginningP 9P ?P ?P ?P ?125391Add collections from customersTotal cash available85_?Less disbursements:Purchase of inventory.405832?Operating expenses4254180Equipment purchases108.36DividendsTotal disbursements110Excess (deficiency) of cash availableover disbursements(3)30Financing:Borrowings? 20?Repayments (including interest)*(?)(7)(?)1.Total financingCash balance, endingP ? P ?P 2P 2P 2* Interest will total P4,000 for the year.Required:Fill in the missing amounts in the table above.8

Cash Budget:- It is a company's estimation of cash inflow and outflow over a period of time which…

A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of P5,000 to start each quarter. Quarter 3. 4 Year P ? P ? P ? P ? Cash balance, beginning P 9 125 391 Add collections from customers Total cash available 85 Less disbursements: 58 32 Purchase of inventory. Operating expenses Equipment purchases 40 42 54 180 10 8. 8. 36 Dividends 2 Total disbursements 110 Excess (deficiency) of cash available over disbursements (3) 30 Financing: Borrowings 20 Repayments (including interest)* (?) (7) (?) Total financing Cash balance, ending P ? P ? P ? P 2 P 2 * Interest will total P4,000 for the year. Required: Fill in the missing amounts in the table ahove

A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of P5,000 to start each quarter. Quarter 3. 4 Year P ? P ? P ? P ? Cash balance, beginning P 9 125 391 Add collections from customers Total cash available 85 Less disbursements: 58 32 Purchase of inventory. Operating expenses Equipment purchases 40 42 54 180 10 8. 8. 36 Dividends 2 Total disbursements 110 Excess (deficiency) of cash available over disbursements (3) 30 Financing: Borrowings 20 Repayments (including interest)* (?) (7) (?) Total financing Cash balance, ending P ? P ? P ? P 2 P 2 * Interest will total P4,000 for the year. Required: Fill in the missing amounts in the table ahove

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 33E: A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent...

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A companys controller is adjusting next years budget to reflect the impact of an expected 3 percent inflation rate. Listed below are selected items from next years budget before the adjustment. After adjusting for the 3 percent inflation rate, what is the companys total budget for the selected items before taxes for next year? a. 858,150 b. 860,412 c. 810,971 d. 858,971
A. Discuss the purpose of the cash budget. B. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used?
Exercise 7 (Cash Budget Analysis) A cash budget, by quarters, is given below for a retail company. (000 omitted). The company requires a minimum cash balance of P5,000 to start each quarter. Quarter 1 2 3 4 Year Cashbalance,beginning.. P9 P ? P ? P? P? Add collectionsfromcustomers.... ? ? 125 ? 391 Totalcash available... 85 ? ? Less disbursements: Purchaseofinventory. 40 58 ? 32 Operatingexpenses. 42 54 ? 180 Equipmentpurchases.. 10 8 8 36 Dividends... 2 2 2 2 ? Totaldisbursement.. 110 ? ? ? Excess (deficiency) of cash available Ordisbursements.... (3) 30 ? ? Financing: Borrowings.. ? 20 Repayments (including interest)*.. (?) (7) (?) Total financing... ? ? (?) (?) Cash balance, ending.... P ? P ? P ? P ? P? *Interest will total P4, 000 for the year. Required: Fill in the missing amounts in the table above.
Exercise 7 (Cash Budget Analysis) A cash budget, by quarters, is given below for a retail company. (000 omitted). The company requires a minimum cash balance of P5,000 to start each quarter. Quarter 1 2 3 4 Year Cash balance, beginning..................... P9 P? P? P? P? Add collections from customers….. ? ? 125 ? 391 Total cash available………………. 85 ? ? ? ? Less disbursements: Purchase of inventory….................. 40 58 ? 32 ? Operating expenses…………... ? 42 54 ? 180 Equipment purchases…................ 10 8 8 ? 36 Dividends…………………….. 2 2 2 2 ? Total disbursement………………..…
Question 1 The following data is available from the various functional budgets prepared at Nur Ika Enterprise for the year 2022: January RM '000 February RM '000 March RM '000 April RM 000 Cash sales 128 84 72 90 Credit sales 640 1,140 880 760 800 Purchases for resale Salaries and wages Overhead expenses 560 520 320 266 280 238 248 160 150 160 140 Other information is available as follows: (1) 5% of all sales on credit are expected to become bad debts. Receipts from credit customers are due in the following sales. All goods are bought on credit from suppliers who allow 2.5% cash discount for payment in the month following purchase. (ii) (iii) Salaries and wages are paid in the month they are earned. (iv) Payments for overhead expenses are made in the month the expenses are incurred. The above overhead budget includes RM28,000 per month for depreciation. Purchase two new vans, costing RM21,000 each, are to be paid in April. (v) (vi) Rental for new office amounting RM175,000 is to be…
QUESTION 3: Based on the following assumptions and policies ; a) Prepare the budget for Collectables from Sales! b) Prepare the budget for Purchases! c) Prepare the budget of Cash Payment for Purchases! d) Set the company’s Cash Budget for 2021 BOARD Policies & Assumptions - Company’s projected sales for the three months as followings: Sales Forecast for 2021 January 2021 200.000 USD February 2021 220.000 USD March 2021 240.000 USD - All Sales are credited: %40 of sales are collected as in form of cash. %30 of sales are credited for 1 month and %30 of it for the next month. Rule: 40;30;30 - Accounts Receivables by quarter ending 31/12/2020 amounted to 120.000 USD a) 30.000 USD of Account Receivables belong to November Sales ( 11/2020) b) 90.000 USD of Account Receivables belong to December Sales ( 12/2020) - All purchases are credited: %50 of purchases are paid in advance and %50 of purchases are debited - Projected Inventories by the…
A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires aminimum cash balance of at least $5,000 to start each quarter.Quarter1 2 3 4 YearCash balance, beginning ............................ $ 6 $ ? $ ? $ ? $ ?Add collections from customers ................. ? ? 96 ? 323Total cash available ................................... 71 ? ? ? ?Less disbursements:Purchase of inventory ............................. 35 45 ? 35 ?Operating expenses ................................ ? 30 30 ? 113Equipment purchases ............................. 8 8 10 ? 36Dividends ................................................ 2 2 2 2 ?Total disbursements .................................... ? 85 ? ? ?Excess (defi ciency) of cash availableover disbursements ................................. (2) ? 11 ? ?Financing:Borrowings .............................................. ? 15 — — ?Repayments (including interest)* ............ — — (?) (17) (?)Total fi nancing…
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…
ces A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $10,000 to start each quarter. Required: Fill in the missing amounts. (Enter your answers in thousands of dollars. Cash deficiencies and Repayments should be indicated by a minus sign.) Cash balance, beginning Add collections from customers Total cash available Less disbursements. Purchase of inventory Selling and administrative expenses Equipment purchases Dividends Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments (including interest) * Total financing Cash balance, ending *Interest will total $1,000 for the year. $ 1 9 71 80 50 13 2 (5) Quarter (000 omitted) 2 3 60 45 9 2 116 16 111 30 25 2 12 4 34 2 (30) (000 omitted) Year 389 119 57
A cash budget, by quarters, is given below for a retail company. (000 omitted) company requires a minimum cash balance of at least Br 5,000to start each quarter. Quarter 1 Quarter 2 Quarter 3 Quarter 4 Year Cash balance, beginning 6 ? ? ? ? Add collections from customers ? ? 96 ? 323 Total cash available 71 ? ? ? ? Less disbursement: Purchase inventory 35 45 ? 35 ? Operating expense ? 30 30 ? 113 Equipment purchase 8 8 10 ? 36 Dividends 2 2 2 2 ? Total disbursement ? 85 ? ? ? Excess (deficiency) of each cash (2) ? 11 ? ? Financing: Borrowing ? 15 - - ? Repayments (including interest) - - ? (17) ? Total financing ? ? ? ? ? Cash balance, ending ? ? ? ? ?
Cash Budget Analysis A cash budget, by quarters, is given below for a retail company (000 omitted). The company requires a minimum cash balance of at least $5,000 to start each quarter. Required: Fill in the missing amounts in the above table.
Exercises 1: Questions for discussion 1. Describe the items reflected in the sales budget. 2. List the items included in the production budget 3. Identify the items that comprise the operating budget Exercises 2: Word Problems Roel Trading Company presents the actual sales for the first three months of year 2019 in its own products as follows: Product B P 540,000 P 567,000 P 595,350 Product A Total Sales Janaury February March P 880,000 P 941,000 P 1,006,750 The business expects that the trends for the past three months will P 340,000 P 374,000 P 411400 continue in April and May 2019. Required: Determined the projected sales for April and May 2019 for the two products. Round the amounts to thousand pesos.