Please assist. (ix) The management of G & J Merchandising & More has negotiated with a tenant to rent office space to herbeginning February 1. The rental is $540,000 per anmum. The first month'srent along with one month's safety deposit is expected to be collected on February 1.Thereafter, monthly rental income becomes đue at the beginning of each month.(x) Wages and salaries are expected to be $2,976,000 per anmum and will be paid monthly.(xi) As part of its investing activities, the management of G & J Merchandising & More has justconcluded an expansion project relating to the business's storage facilities. The projectrequired capital outlay of $1,800,000 and was funded by a loan from a family member, whois a partner in the business. $340,000 of the principal along with interest of $35,000 willbecome due and payable in January 2021.(xii) The cash balance on March 31, 2021 is expected to be an overdraft of $92,000Required:(b) Another team member who is preparing the Budgeted Balance Sheet for the business forthe same quarter and has asked you to furnish him with the figures for the expected tradereceivables and payables to be included in the statement. Is that a reasonable request? Ifyes, what should these amounts be?(c) Upon receipt of the budget the team manager has now informed you that the managementof G & J Merchandising & More have indicated a desire to maintain a minimum cashbalance of $155,000 each month. Based on the budget prepared, will the business beachieving this desired target? Given that the management does not wish to borrow anyfunds from outside sources, suggest three (3) internal strategies that the business mayemploy in order to improve the organization's monthly cash flow. Each strategy must be fullyexplained. G& J Merchandising & More is a family-owned auto-parts store. You are the managementaccountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending March 31, 2021. Your data collection has yielded the following:Extracts from the sales and purchases budgets are as follows:MonthCash SalesSales on AccountPurchasesNovember 2020-March 2021November151,100145,500159,025169,350176,200480,000600,000390,000360,000505,000400,000518,000DecemberJanuaryFebruary700,000650,000800,00March(ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale25% in the second month following the sale(iii) Expected purchases include cash purchases of $25,000 in January and $18,000 in March.All other purchases are on account. Accounts payable are settled as follows, in accordancewith the crecit terms 4/30, n60:75% in the month in which the inventory is purchased25% in the following month(iv) The management of G & J Merchandising & More is in the process of upgrading its fleet ofmotor vehicles. During March the company expects to sell an old Toyota Corolla motorvehicle that cost $500,000 at a gain of $45,000. Accumulated depreciation on this motorvehicle at that time is expected to be $340,000. The employee will be allowed to pay adeposit equal to 60% of the selling price in March; the balance will be settled in two equalamounts in April & May of 2021.(1) An air conditioning unit, which is estimated to cost $300,000, will be purchased in February.The manager has made arrangements with the suppliers to make a cash deposit of 40%upon signing of the agreement in February. The balance will be settled in four (4) equalmonthly instalments beginning March 2021.(vi) A long-term bond purchased by G & J Merchandising & More 4 years ago, with a face valueof $500,000 will mature on January 20, 2021. In order to meet the financial obligations ofthe business, management has decided to liquidate the investment upon maturity. On thatdate quarterly interest computed at a rate of 5%% per anmum is also expected to becollected.(vii) Fixed operating expenses which accrue evenly throughout the year, are estimated to be$2,016,000 per anmum, [including depreciation on non-current assets of $42,000 per month]and are settled monthly.(viii) Other operating expenses are expected to be $177,000 per quarter and are settled monthly.

Budgeted Balance sheet refers to the standard kind of balance sheet that is normally made by any…

(ix) The management of G & J Merchandising & More has negotiated with a tenant to rent office space to her beginning February 1. The rental is $540,000 per anmum. The first month's rent along with one month's safety deposit is expected to be collected on February 1. Thereafter, monthly rental income becomes due at the beginning of each month. (x) Wages and salaries are expected to be $2,976,000 per ammum and will be paid monthly. (xi) As part of its investing activities, the management of G & J Merchandising & More has just concluded an expansion project relating to the business's storage facilities. The project required capital outlay of $1,800,000 and was funded by a loan from a family member, who is a partner in the business. $340,000 of the principal along with interest of $35,000 will become đue and payable in January 2021. (xii) The cash balance on March 31, 2021 is expected to be an overdraft of $92,000

(ix) The management of G & J Merchandising & More has negotiated with a tenant to rent office space to her beginning February 1. The rental is $540,000 per anmum. The first month's rent along with one month's safety deposit is expected to be collected on February 1. Thereafter, monthly rental income becomes due at the beginning of each month. (x) Wages and salaries are expected to be $2,976,000 per ammum and will be paid monthly. (xi) As part of its investing activities, the management of G & J Merchandising & More has just concluded an expansion project relating to the business's storage facilities. The project required capital outlay of $1,800,000 and was funded by a loan from a family member, who is a partner in the business. $340,000 of the principal along with interest of $35,000 will become đue and payable in January 2021. (xii) The cash balance on March 31, 2021 is expected to be an overdraft of $92,000

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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G & J Merchandising & More is a family-owned auto-parts store. You are the managementaccountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending March 31, 2021. Your data collection has yielded the following: (i) Extracts from the sales and purchases budgets are as follows: Month Novemer 2020- March 2021 Cash Sales Sales on Account Purchases November $151,100 $480,000 $390,000 December $145,500 $600,000 $360,000 January $159,025 $700,000 $505,000 February $169,350 $650,000 $400,000 March $176,200 $800,000 $518,000 (ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale25% in the second month following the sale G & J Merchandising & more Schedule of budgeted cash collection – Sales on A/C…
G & J Merchandising & More is a family-owned auto-parts store. You are the managementaccountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending March 31, 2021. Your data collection has yielded the following: (i) Extracts from the sales and purchases budgets are as follows: Month Novemer 2020- March 2021 Cash Sales Sales on Account Purchases November $151,100 $480,000 $390,000 December $145,500 $600,000 $360,000 January $159,025 $700,000 $505,000 February $169,350 $650,000 $400,000 March $176,200 $800,000 $518,000 (ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale25% in the second month following the sale (iii) Expected purchases include cash purchases of $25,000 in January and $18,000 in March.All…
G & J Merchandising & More is a family-owned auto-parts store. You are the managementaccountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending March 31, 2021. Your data collection has yielded the following:(i) Extracts from the sales and purchases budgets are as follows:MonthNovember 2020 – March 2021CashSalesSalesOnAccountPurchasesNovember $151,100 $480,000 $390,000December $145,500 $600,000 $360,000January $159,025 $700,000 $505,000February $169,350 $650,000 $400,000March $176,200 $800,000 $518,000(ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale25% in the second month following the sale(iii) Expected purchases include cash purchases of $25,000 in January and $18,000 in March.All other purchases are on account.…
G & J Merchandising & More is a family-owned auto-parts store. You are the managementaccountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending March 31, 2021. Your data collection has yielded the following:(i) Extracts from the sales and purchases budgets are as follows:MonthNovember 2020 – March 2021CashSalesSalesOnAccountPurchasesNovember $151,100 $480,000 $390,000December $145,500 $600,000 $360,000January $159,025 $700,000 $505,000February $169,350 $650,000 $400,000March $176,200 $800,000 $518,000(ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale25% in the second month following the sale(iii) Expected purchases include cash purchases of $25,000 in January and $18,000 in March.All other purchases are on account.…
G & J Merchandising & More is a family-owned auto-parts store. You are the managementaccountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending March 31, 2021. Your data collection has yielded the following:(i) Extracts from the sales and purchases budgets are as follows:MonthNovember 2020 – March 2021CashSalesSalesOnAccountPurchasesNovember $151,100 $480,000 $390,000December $145,500 $600,000 $360,000January $159,025 $700,000 $505,000February $169,350 $650,000 $400,000March $176,200 $800,000 $518,000(ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale25% in the second month following the sale(iii) Expected purchases include cash purchases of $25,000 in January and $18,000 in March.All other purchases are on account.…
G & J Merchandising & More is a family-owned auto-parts store. You are the managementaccountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending March 31, 2021. Your data collection has yielded the following:(i) Extracts from the sales and purchases budgets are as follows:MonthNovember 2020 – March 2021CashSalesSalesOnAccountPurchasesNovember $151,100 $480,000 $390,000December $145,500 $600,000 $360,000January $159,025 $700,000 $505,000February $169,350 $650,000 $400,000March $176,200 $800,000 $518,000(ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale25% in the second month following the sale(iii) Expected purchases include cash purchases of $25,000 in January and $18,000 in March.All other purchases are on account.…
G & J Merchandising & More is a family-owned auto-parts store. You are the managementaccountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending March 31, 2021. Your data collection has yielded the following:(i) Extracts from the sales and purchases budgets are as follows:MonthNovember 2020 – March 2021 Cash Sales Sales on Account Purchases November $151,100 $480,000 $390,000December $145,500 $600,000 $360,000January $159,025 $700,000 $505,000February $169,350 $650,000 $400,000March $176,200 $800,000 $518,000 (ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30% in the first month following the sale25% in…
G & J Merchandising & More is a family-owned auto-parts store. You are the managementaccountant of the concern and have been given the task of preparing the cash budget for thebusiness for the quarter ending March 31, 2021. Your data collection has yielded the following:(i) Extracts from the sales and purchases budgets are as follows:MonthNovember 2020 – March 2021 Cash Sales Sales on Account Purchases November $151,100 $480,000 $390,000December $145,500 $600,000 $360,000January $159,025 $700,000 $505,000February $169,350 $650,000 $400,000March $176,200 $800,000 $518,000 (ii) An analysis of the records shows that trade receivables (accounts receivable) are settledaccording to the following credit pattern, in accordance with the credit terms 2/30, n90:45% in the month of sale30%…
G & J Merchandising & More is a family-owned auto-parts store. You are the management accountant of the concern and have been given the task of preparing the cash budget for the business for the quarter ending March 31, 2021. Your data collection has yielded the following: (i) Extracts from the sales and purchases budgets are as follows: Month November 2020 – March 2021 Cash Sales Sales On Account Purchases November $151,100 $480,000 $390,000 December $145,500 $600,000 $360,000 January $159,025 $700,000 $505,000 February $169,350 $650,000 $400,000 March $176,200 $800,000 $518,000 (ii) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 2/30, n90: 45% in the month of sale 30% in the first month following the sale 25% in the second month following the sale (iii) Expected purchases include cash purchases of $25,000 in January and $18,000 in March. All other…
G & J Merchandising & More is a family-owned auto-parts store. You are the management accountant of the concern and have been given the task of preparing the cash budget for the business for the quarter ending March 31, 2021. Your data collection has yielded the following: (i) Extracts from the sales and purchases budgets are as follows: Month November 2020 – March 2021 Cash Sales Sales On Account Purchases November $151,100 $480,000 $390,000 December $145,500 $600,000 $360,000 January $159,025 $700,000 $505,000 February $169,350 $650,000 $400,000 March $176,200 $800,000 $518,000 (ii) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 2/30, n90: 45% in the month of sale 30% in the first month following the sale 25% in the second month following the sale (iii) Expected purchases include cash purchases of $25,000 in January and $18,000 in March. All other…
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