MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
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Chapter 8, Problem 8.25P
a.
To determine
Introduction:
Cash collection schedule:
A cash collection schedule refers to the amount which is receivable for the business enterprise in different time periods.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 1
To prepare: A schedule of expected cash collections for April, May, and June, and the quarter in total.
b.
To determine
Introduction:
Merchandise purchases budget:
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 2
To prepare: (a) A merchandise purchases budget for April, May, and June and (b) a schedule of expected cash disbursements for merchandise purchases for April, May, June, and Quarters in total.
c.
To determine
Introduction:
A cash budget refers to the forecasted cash flow of a business enterprise in a particular time period.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 3
To prepare: A cash budget for April, May, June, and Quarters in total.
d.
To determine
Introduction:
Cash budget:
A cash budget refers to the forecasted cash flow of a business enterprise in a particular time period.
Given Information: Company G assumes that sales will continue to 20% for cash and 80% on credit, April to June period 25%, 65%, and 10% respectively. Its ending inventory levels from April to June at 15% of the cost of the merchandise and the merchandise inventory in March end is $84,000 with a $126,000 payable amount.
Requirement 4
To prepare: A brief memorandum for the company’s president that shows how his revised assumptions affect the cash budget.
Expert Solution & Answer
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Students have asked these similar questions
2:Company B also uses the Analysis of Receivables method. However,
Management has asked us to take a look at the Income Statement Impact if we
change the Uncollectible Percentages for Each Budget of Aging. The aging
schedule looks like the following:
Customer Total Due
Current
1-60 Past Due 61+Past Due
A
1,000
1,000
B
1,500
1,500
800
800
2,000
2,000
E
500
500
Total:
5,800
2,800
1,000
2,000
Aging Category
Current (Not past due)
As Is
Proposed
3%
2%
1- 60 past due
5%
4%
61+ days past due
9%
8%
The balances in the accounts before any adjustments are as follows: current
Sales are $400,000, Allowance for Doubtful Accounts has a Credit balance of
$250, and bad debt expense has a debit balance of $2,000.
What would be the adjusting entry under the As Is Calculation?
What would be the adjusting entry under the Proposed Calculation?
Which one of the following budget is not affected when credit period to customers is changed from 30 days to 90 days to achieve 30% inrease in sales?
A. Capital budget
B. Production Budget
C. Cash Budgets
D. Sales Budge
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
?
?
?
?
?
Chapter 8 Solutions
MANAGERIAL ACCOUNTING F/MGRS.
Ch. 8 - Prob. 8.1QCh. 8 - Prob. 8.2QCh. 8 - Prob. 8.3QCh. 8 - Prob. 8.4QCh. 8 - Prob. 8.5QCh. 8 - Prob. 8.6QCh. 8 - Prob. 8.7QCh. 8 - Prob. 8.8QCh. 8 - Prob. 8.9QCh. 8 - Prob. 8.10Q
Ch. 8 - Prob. 8.1AECh. 8 - Morganton Company makes one product, and it...Ch. 8 - Prob. 8.1ECh. 8 - Prob. 8.2ECh. 8 - Prob. 8.3ECh. 8 - Prob. 8.4ECh. 8 - Prob. 8.5ECh. 8 - Prob. 8.6ECh. 8 - Prob. 8.7ECh. 8 - Prob. 8.8ECh. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - Prob. 8.12ECh. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - Prob. 8.17ECh. 8 - Prob. 8.18ECh. 8 - Prob. 8.19PCh. 8 - Prob. 8.20PCh. 8 - Prob. 8.21PCh. 8 - Prob. 8.22PCh. 8 - Prob. 8.23PCh. 8 - Prob. 8.24PCh. 8 - Prob. 8.25PCh. 8 - Prob. 8.26PCh. 8 - Prob. 8.27PCh. 8 - Prob. 8.28PCh. 8 - Prob. 8.29PCh. 8 - Prob. 8.30PCh. 8 - Prob. 8.31PCh. 8 - Prob. 8.32CCh. 8 - Prob. 8.33C
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