Company is proving details of month's expenses as follows: 2020 Sales Purchases Wages Overheads Months January 85,000 48,000 10,000 12,500 February 90,000 52,000 11,000 13,500 March 1,20,000 60,000 14,000 15,000 Apil 1,30,000 62,000 14,000 16,000 You are required to: 1. Explain Cash Budget 2. Prepare Cash budget for Company 3. Interpret the Results. 4. Give your recommendation for Credit Policy of Company. 5. What do you think about company's Cash or Liquid Position? 6. How company can increase its liquidity?
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- Dear Bartleby, Could you please assist with the following schedule of cash payments, thank you. e. Prepare a schedule of cash payments for materials, by month and in total, for the second quarter of 2019. Soprano Co. is in the process of preparing the second quarter budget for 2019, and the following data have been assembled: The company sells a single product at a selling price of $40 per unit. The estimated sales volume for the next six months is as follows: March 6,000 units June 8,000 units April 7,000 units July 9,000 units May 10,000 units August 6,000 units All sales are on account. The company's collection experience has been that 40% of a month's sales are collected in the month of sale, 55% are collected in the month following the sale, and 5% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $132,000 on March 31, 2019.…Johns industries expects to purchase $160000 of materials in July and $180000 of materials in August. 3/4 of all purchases are paid in the month of purchase and the other one fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be? 1) 120000 2) 175000 3) 180000 0r 4) 135000Nizwa Company prepares its budget for January-April period. On 1 January, the cash available 15000 OMR. The financial information is given in the table below. Sales Purchases Expenses December 72000 45000 7000 January February 85000 53000 9000 90000 54000 6000 March 95000 65000 11000 April Additional Information: (a) Period of credit allowed by suppliers is one month (b) 30 % of sale is cash and the period of credit allowed to customer for credit sale one month. (c) The period allowed in payment of expenses is one month. Which of the following is the total of cash balances at the end of February and March?
- Wellness Products, needs a cash budget for September. The following information is available: 1. The cash balance at the beginning of August is 9,000€. 2. Contribution margin is 50% (COGS are 50% of sales) 3. Actual sales for July and expected sales for August, September and October are as shown below. Some customers pay in cash (Cash sales) and others in account as described in the figure below. Customers that pay in account, make the payment the month after. 4. Purchases of inventory (company just resells what they buy) must be done so that the end of month inventory must cover 20% of next month sales. Initial inventory in July was 5.300€. 100% of a month's inventory purchases are paid for during the month of purchase. 1. Prepare a schedule of expected cash collections for August, September & October. 2. Prepare a merchandise purchases budget for July, August, and September. 3. Prepare a schedule of expected cash flow (cash in minus cash out) for August, and September. Cash Sales…Al Bahr Corporation, a wholesaler, provided the following information (photo) Customers pay 60% of their balances in the month of sale, 30% in the month following sale, and 10% in the second month following sale. Required: Determine the expected cash collection during April.A company has the following information: The production budget for the six-month period to 30 June 2022 shows that the cost of rawmaterials to be used in that period will be P331,000. Required: Calculate the cash that will be paid to suppliers during the six-month period to 30 June 2022.
- Nizwa Company prepares its budget for January-April period. On 1 January, the cash available is 15000 OMR. The financial information is given in the table below. Sales Purchases Expenses December 72000 45000 7000 January 85000 53000 9000 February 90000 54000 6000 March 95000 65000 11000 April 105000 75000 13000 Additional Information: (a) Period of credit allowed by suppliers is one month (b) 30 % of sale is for cash and the period of credit allowed to customer for credit sale one month. (c) The period allowed in payment of expenses is one month. Which of the following is the total of cash balances at the end of February and March? Select one: a. 184100 b. 131300 c. 158300 d. 95600Nizwa Company prepares its budget for January-April period. On 1 January, the cash available is 15000 OMR. The financial information is given in the table below. Sales Purchases Expenses December 72000 45000 7000 January 85000 53000 9000 February 90000 54000 6000 March 95000 65000 11000 April 105000 75000 13000 Additional Information: (a) Period of credit allowed by suppliers is one month (b) 30 % of sale is for cash and the period of credit allowed to customer for credit sale one month. (c) The period allowed in payment of expenses is one month. Which of the following is the total of cash balances at the end of February and March? Select one: a. 158300 b. 95600 c. 131300 d. 184100 Clear my choicea) “LeverUni Bangladesh” has forecasted purchases on account to be BDT 209000 in March, BDT 261000 in April, BDT 313000 in May, and BDT 365000 in June. 80 percent of purchases are paid for in the month of purchase, the remaining are paid in the following month. What are budgeted cash payments for April? (b) Taba Bangladesh intends to produce special type of leather handbags for the upcoming season. The production budget for the next four months is: June 5800 units, July 6600 units, August 7100 units, September 8100 units. Each handbag requires 0.5 square meters of leather. Its leather inventory policy is 40 percent of next month's production needs. On June 1 leather inventory was expected to be 1900 square meters. Leather is expected to cost BDT 6 per square meter in June. What is the expected cost of leather purchases in June?
- Kupa Ltd. has approached their local banker for an overdraft facility in 2021. The banker has asked to provide a cash budget for the first six months of 2021. The company has furnished you with the following information. Oct 2020 Nov 2020 Dec. 2020 Jan. 2021 Feb. 2021 Mar. 2021 Apr. 2021 May 2021 June 2021 July 2021 Aug. 2021 Sep 2021 Sales (Sh.‘000’) 190 170 200 180 220 240 210 160 180 220 240 220 Sales are made 40% cash. Of credit sales, 30% is collected in the month of sale, 40% one month after sale and 25% two months from sales Gross profit margin is 25%. Goods purchased in a month are sold two months after the month of purchase. Purchases are paid 30% one the month of purchase and the remainder two months thereafter. Cash Overheads average 10% of the monthly sales. Cash Operating expenses are 15% of the monthly sales. New equipment costing Sh. 24,000 will, be purchased for cash in April. Annual depreciation on this…Bersatu Kekal Bhd is an engineering company that started a new business with an opening cash balance of RM85,000. This new business will focus on sales component parts to all potential customers located in Pasir Gudang, Johor. The following are the budgeted data of Bersatu Kekal Bhd for the year 2019. 1. In January 2019, to start a business the company has rented a double storey building for its operation at RM5,000 per month with RM20,000 rental deposit. Rental deposit is paid in January and monthly rental will be paid in the month it is incurred. 2. In February, the company is planning to purchase a machine at a cost of RM55,000 which has an estimated useful life of 10 years. Depreciation charge per annum will be RM5,500. Only half of the machine cost will be paid in the month of purchase, while the balance will be paid equally over the next two months. 3. Four (4) administration staff will be employed and each staff will be paid RM1,200 per month. Payment will be in the…Bersatu Kekal Bhd is an engineering company that started a new business with an opening cash balance of RM85,000. This new business will focus on sales component parts to all potential customers located in Pasir Gudang, Johor. The following are the budgeted data of Bersatu Kekal Bhd for the year 2019. 1. In January 2019, to start a business the company has rented a double storey building for its operation at RM5,000 per month with RM20,000 rental deposit. Rental deposit is paid in January and monthly rental will be paid in the month it is incurred. 2. In February, the company is planning to purchase a machine at a cost of RM55,000 which has an estimated useful life of 10 years. Depreciation charge per annum will be RM5,500. Only half of the machine cost will be paid in the month of purchase, while the balance will be paid equally over the next two months. 3. Four (4) administration staff will be employed and each staff will be paid RM1,200 per month. Payment will be in the…