Final Exam - Spring 2024 9 Saved Quarters 1, 2, and 3. It will repay as much of its borrowings as possible as soon as it has more than $5,000 in cash in a given quarter. Suppose the company starts the first quarter with no bank debt. How much total bank debt does the company expect to have at the end of the third quarter? Cash Budget Cash balance, beginning Add collections from customers 00:46:47 Total cash available Quarter (000 omitted) 1 3 $7 ? ? 88 88 ? ? ? Less disbursements: Purchase of inventory 56 65 65 Selling and administrative expenses 39 45 Equipment purchases 7 9 12 Dividends 2 2 ? ? ? Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings ? Repayments ? ? ? Total financing ? ? ? Cash balance, ending ? Multiple Choice о О О $6,000 $50,000 $42,000 ○ $14,000 Help Save & Exit

Final Exam - Spring 2024 9 Saved Quarters 1, 2, and 3. It will repay as much of its borrowings as possible as soon as it has more than $5,000 in cash in a given quarter. Suppose the company starts the first quarter with no bank debt. How much total bank debt does the company expect to have at the end of the third quarter? Cash Budget Cash balance, beginning Add collections from customers 00:46:47 Total cash available Quarter (000 omitted) 1 3 $7 ? ? 88 88 ? ? ? Less disbursements: Purchase of inventory 56 65 65 Selling and administrative expenses 39 45 Equipment purchases 7 9 12 Dividends 2 2 ? ? ? Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings ? Repayments ? ? ? Total financing ? ? ? Cash balance, ending ? Multiple Choice о О О $6,000 $50,000 $42,000 ○ $14,000 Help Save & Exit

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 Cash Budget INFORMATIONThe following information was provided by Intel Enterprises:1. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable).2. Credit sales are expected to be as follows: December 2022 January 2023 February 2023 R576 000 R540 000 R648 000 3. Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customersreceive a 10% discount.4. Credit sales are normally collected as follows:* 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount.* 65% in the following monthThe rest is usually written off as bad debts.5. Budgeted purchases of inventory are as follows: December 2022 January 2023 February 2023 R1 000 000 R800 000 R920 000 6. Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the…
Use the information provided below to prepare the following for January and February 2023: 4.1 Debtors Collection Schedule 4.2 5. 6. 7. 8. 9. 10. INFORMATION The following information was provided by Intel Enterprises: 1. 2. Cash Budget 3. 4. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable). Credit sales are expected to be as follows: December 2022 R576 000 Credit sales are normally collected as follows: 65% in the following month January 2023 Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers receive a 10% discount. The rest is usually written off as bad debts. R540 000 * 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount. December 2022 Budgeted purchases of inventory are as follows: R1 000 000 February 2023 January 2023 R648 000 R800 000 February 2023 R920 000 Fifty percent (50%) of the purchases are for cash. The remainder is paid in the month after the…
REQUIRED Use the following information provided by Ashton Enterprises to prepare the: Debtors Collection Schedule for January and February 2021. 5.1 5.2 Cash Budget for January and February 2021. Note: Where applicable, round off amounts to the nearest Rand. INFORMATION 1. The bank balance on 31 December 2020 is expected to be R40 000 (favourable). 2. Expected credit sales are as follows: December 2020 January 2021 February 2021 R360 000 R390 000 R420 000 3. Credit sales usually make up 60% of the total sales. Cash sales make up the balance. Credit sales are normally collected as follows: 20% in the month in which the transaction took place. These debtors are entitled to a 5% discount. 4. 75% in the following month. The rest is usually written off as bad debts.
QUESTION 3 REQUIRED Use the information provided below to prepare the following for Mustang Enterprises for January and February 2024. 3.1 Debtors Collection Schedule 3.2 Cash Budget. INFORMATION The following information was supplied by Mustang Enterprises: 1. Mustang Enterprises expects to have an unfavourable bank balance of R40 000 on 31 December 2023. 2. The monthly sales were projected as follows: 2023 Units November 44 000 December 53 000 2024 Units January 47 000 February 31 000 3. The selling price is R20 per unit (excluding any discounts). All the goods produced each month are expected to be sold in the same month. Sixty percent (60%) of the sales is expected to be on credit and the balance is for cash. Thirty percent (30%) of the cash sales is subject to a discount of 10%. 4. Credit sales are usually collected as follows: 20% in the month of sale, and these debtors receive a 5% discount. 75% in the month after the sale, and the rest is usually written off as bad debts. 5.…
REQUIRED Use the following information provided by Ashton Enterprises to prepare the: 5.1 Debtors Collection Schedule for January and February 2021. 5.2 Cash Budget for January and February 2021. Note: Where applicable, round off amounts to the nearest Rand. INFORMATION The bank balance on 31 December 2020 is expected to be R40 000 (favourable). Expected credit sales are as follows: December 2020 R360 000 1. 2. 3. 4. 5. 6. 7. 8. 9. * * January 2021 R390 000 February 2021 R420 000 11 Credit sales usually make up 60% of the total sales. Cash sales make up the balance. Credit sales are normally collected as follows: 20% in the month in which the transaction took place. These debtors are entitled to a 5% discount. 75% in the following month. The rest is usually written off as bad debts. The mark-up is 25% on cost. The goods that are sold each month are replaced in the same month. The ratio of cash purchases to credit purchases is 3:1 respectively. Creditors are paid in the month after the…
Prime Products hopes to borrow $79,000 on April 1 and repay it plus interest of $1,140 on June 30. The following data are available for the months April through June, during which the loan will be used: a. On April 1, the start of the loan period, the cash balance will be $16,500. Accounts receivable on April 1 will total $190,400, of which $163,200 will be collected during April and $21,760 will be collected during May. The remainder will be uncollectible. b. The company estimates 30% of a month's sales are collected in the month of sale, 60% in the month following sale, and 8% in the second month following sale. The other 2% are bad debts that are never collected. Budgeted sales and expenses for the three- month period follow: Sales (all on account) Merchandise purchases Payroll Lease payments Advertising Equipment purchases Depreciation April May $ 312,000 $ 204,000 $ 24,000 $ 24,800 $ 79,200 $ 428,000 $ 162,000 $ 24,000 $ 24,800 $ 79,200 $ 17,200 $ 17,200 c. Merchandise purchases…
Question 4 Use the information provided below to prepare the following for January and February 2023: Debtors Collection Schedule Cash Budget INFORMATION The following information was provided by Intel Enterprises: 3. 5. The bank balance on 31 December 2022 is expected to be R40 000 (unfavourable). Credit sales are expected to be as follows. December 2022 R576 000 January 2023 Credit sales are normally collected as follows: 65% in the following month Credit sales usually make up 40% of the total sales. Cash sales make up the balance. Cash customers receive a 10% discount. R540 000 The rest is usually written off as bad debts. 30% in the month in which the transaction takes place, and these customers are entitled to a 5% discount. December 2022 Budgeted purchases of inventory are as follows. R1 000 000 February 2023 January 2023 R648 000 R800 000 February 2023 R920 000
K Cash flow of accounts receivable. Myers and Associates, a famous law firm in California, bills its clients on the first of each month. Clients pay in the following fashion: 40% pay at the end of the first month, 30% pay at the end of the second month, 20% pay at the end of the third month, 5% pay at the end of the fourth month, and 5% default on their bills. Myers wants to know the anticipated cash flow for the first quarter of 2015 if the past billings and anticipated billings follow this same pattern. The actual and anticipated billings are as follows: Click on the icon in order to copy its content into a spreadsheet Fourth Quarter Actual Billings Oct. $421,000 Nov. $334,000 Dec. $305,000 First Quarter Anticipated Billings Jan. $370,000 Feb. $399,000 Mar $447,000 What is the anticipated cash flow for January of 2015 if past billings and anticipated billings follow this same pattern? (Round to the nearest dollar)
1. Cash at bank on 1 January 2023 amounted to R200 000.2. Projected sales for the first four months of 2023:January R220 000February R600 000March R720 000April R850 000Fifty percent (50%) of the sales are for cash and fifty percent (50%) are on credit. Cash customers are entitled to a 5% cash discount.23. Collection of credit sales:· 60% of the credit sales are collected in the month of the sale.· 30% is collected in the following month and the balance is written off as a bad debt.4. Purchases for the first four months of 2023 are expected to be as follows:January R100 000February R150 000March R160 000April R180 000All purchases are on credit. 50% of the purchases will be paid for in the month of purchase and the remaining 50% in the following month.5. Fixed overheads total R200 000 per year and are paid for equally each month.6. Administrative expenses are paid for in the month in which they are incurred and are estimated at a total of R10 000 per monthAn investment of R200 000…
Question 1Ming Chung Limited is applying for additional bank overdraft finance to enable thecompany to make the plant and machinery purchase described below. The directorshave has asked you to draw up a cash budget for the 6 months to 30 June 2020 toprove to the bank that that overdraft finance will be repaid by 30 June 2020. Thecompany provides you with the following financial information:Month Sales Purchases Wages Overheads£ £ £ £November 2019 (actual) 45,800 18,400 9,600 6,000December 2019 (actual) 34,600 13,900 9,800 14,000January 2020 (budgeted) 42,200 16,800 10,500 7,000February 2020 (budgeted) 44,000 17,600 11,200 7,500March 2020 (budgeted) 54,000 21,600 13,500 18,800April 2020 (budgeted) 57,600 23,000 14,400 8,000May 2020 (budgeted) 61,800 24,700 15,300 9,200June 2020 (budgeted) 63,700 25,500 15,900 9,800Notes♦ The bank balance at 1 January 2020 is expected to be £25,000.♦ 60% of sales are for cash with the other 40% being on credit. 70% of creditsales pay in the month…
Kat Ltd.'s September balance sheet contains the following information: Cash Accounts receivable. Allowance for doubtful accounts Merchandise inventory $ 37,500 (dr) 126,000 (dr) 2,800 (cr) 26,250 (dr) Management has designated $37,500 as the firm's minimum monthly cash balance. Other information about the firm and its operations is as follows: a. Sales revenues of $350,000, $420,000, and $312,500 are expected for October, November, and December, respectively. All goods are sold on account. b. The collection pattern for accounts receivable is 60% in the month of sale, 39% in the month following the month of sale, and 1% uncollectible, which is set up as an allowance. c. Cost of goods sold is 60% of sales revenues. d. Management's target ending balance of merchandise inventory is 10% of the current month's budgeted cost of goods sold. e. All accounts payable for inventory are paid in the month of purchase. f. Other monthly expenses are $49,250, which includes $3,500 of depreciation and…
Question-4 REQUIRED Use the information provided by Empire Traders to prepare the following for March and April 2024: 4.1 Debtors Collection Schedule 4.2 Cash Budget. INFORMATION The following information was provided by Empire Traders: 1. Empire Traders expects to have a favourable bank balance of R60 000 on 28 February 2024. 2. Budgeted sales figures for 2024 are as follows: 3. 4. 5. 6. 7. Cash sales Credit sales 9. January R320 000 R370 000 Total purchases February R370 000 R390 000 March R310 000 R320 000 Thirty percent (30%) of the cash sales is to informal traders who are entitled to a discount of 10%. Collections from debtors are usually as follows: • 80% is collected in the month after the sale. 20% is collected two months after the sale. Purchases of inventory are expected to be as follows: January February R410 000 R460 000 April R250 000 R300 000 March R400 000 April R380 000 Sixty percent (60%) of the purchases is for cash to take advantage of a discount of 15%. The balance…