3. The Uthred Company, a merchandising firm, has planned the following sales forthe next four months:March$50,000Аpril$70,000Мay$90,000JuneJuly$90,000Total budgetedSales$60,000Sales are made 60% on account and 40% cash. From experience, the company haslearned that a month's sales on account are collected according to the followingpattern:Month of sale60%• First month following month of sale .• Second month following month of sale• Uncollectible28%10%2%Uthred has a building that is not used in the business operation; they rented it out andreceive $10,080 rent every month.The company requires a minimum cash balance of $14,000 to start a month. a) Compute the budgeted cash receipts for June.b) Assume the following budgeted data for June:$52,000$10,000$18,000$18,000.$12,000$4,000$5,700Purchases .Selling and administrative expenses .• Depreciation .Equipment purchases• Dividend payment• Tax payment..• Cash balance, beginning of JuneUsing this data, along with your answer to part (1) above, prepare a cash budget ingood form for June. The company can borrow in any dollar amount, but will not payany interest until the following month.

Budgets are estimates or forecasts that are made for the future. These are the quantitative form for…

a) Compute the budgeted cash receipts for June. b) Assume the following budgeted data for June: • Purchases .. • Selling and administrative expenses • Depreciation . Equipment purchases • Dividend payment . • Tax payment.. • Cash balance, beginning of June. $52,000 $10,000 $18,000 $18,000 .$12,000 $4,000 $5,700 Using this data, along with your answer to part (1) above, prepare a cash budget in good form for June. The company can borrow in any dollar amount, but will not pay any interest until the following month.

a) Compute the budgeted cash receipts for June. b) Assume the following budgeted data for June: • Purchases .. • Selling and administrative expenses • Depreciation . Equipment purchases • Dividend payment . • Tax payment.. • Cash balance, beginning of June. $52,000 $10,000 $18,000 $18,000 .$12,000 $4,000 $5,700 Using this data, along with your answer to part (1) above, prepare a cash budget in good form for June. The company can borrow in any dollar amount, but will not pay any interest until the following month.

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 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

See similar textbooks

Similar questions

Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and 18,000 in February. Each lens consists of 2 pounds of silicon costing $2.50 per pound, 3 oz of solution costing $3 per ounce, and 30 minutes of direct labor at a labor rate of $18 per hour. Desired inventory levels are: Â Prepare a sales budget, production budget. direct materials budget for silicon and solution, and a direct labor budget.
One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.
Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?
Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost of the sales order processing activity is 250,000 and 50,000 sales orders are estimated to be processed. a. Determine the activity rate of the sales order processing activity. b. Determine the amount of sales order processing cost associated with 30,000 sales orders.
The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.
The sales department of F. Pollard Manufacturing Co. has forecast sales in March to be 20,000 units. Additional information follows: Materials used in production: Prepare the following: a. A production budget for March (in units). b. A direct materials budget for the month (in units and dollars).
Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.
Blue Book printing is budgeting sales of 25,000 units and already has 5,000 in beginning inventory. How many units must be produced to also meet the 7,000 units required in ending inventory?
Sunrise Poles manufactures hiking poles and is planning on producing 4,000 units in March and 3,700 in April. Each pole requires a half pound of material, which costs $1.20 per pound. The companys policy is to have enough material on hand to equal 10% of the next months production needs and to maintain a finished goods inventory equal to 25% of the next months production needs. What is the budgeted cost of purchases for March?
Alyssum, Inc., a merchandising company, has provided the following extracts from their budget for the first quarter of the forthcoming year: Jan Feb Purchases on account $262,000 $294,000 March $360,000 The vendors have required the following terms of payment Month of purchase First month after the purchase Second month after the purchase 30% 35% 35% Calculate the total payment on account for the month of March. O A. $360,000 OB. $180,030 OC. $136,220 OD. $302,600 13
The Uthred Company, a merchandising firm, has planned the following sales for the next four months: March April May June Total budgeted Sales $50,000 $70,000 $90,000 $60,000 Sales are made 40% for cash and 60% on account. From experience, the company has learned that a month’s sales on account are collected according to the following pattern: Month of sale.......................................................... 70% First month following month of sale...................... 20% Second month following month of sale.................. 8% Uncollectible.......................................................... 2% The company requires a minimum cash balance of $10,000 to start a month. Required Compute the budgeted cash receipts for May. Assume the following budgeted data for May: Purchases...................................................... $52,000 Selling and administrative expenses............ $12,000…
3. The Uthred Company, a merchandising firm, has planned the following sales for the next four months: March $50,000 Аpril $70,000 Мay $90,000 June July $90,000 Total budgeted Sales $60,000 Sales are made 60% on account and 40% cash. From experience, the company has learned that a month's sales on account are collected according to the following pattern: Month of sale 60% • First month following month of sale . • Second month following month of sale • Uncollectible 28% 10% 2% Uthred has a building that is not used in the business operation; they rented it out and receive $10,080 rent every month. The company requires a minimum cash balance of $14,000 to start a month.