![nathanscastr02](/avatars/48196.jpg)
nathanscastr02
05.08.2020 •
Business
The treasurer of Systems Company has accumulated the following budget information for the first two months of the coming year:
March April
Sales. $450,000 $520,000
Manufacturing costs 290,000 350,000
Selling and administrative expenses 41,400 46,400
Capital additions 250,000
The company expects to sell about 35% of its merchandise for cash. Of sales on account, 80% are collected in full in the month of the sale and the remainder in the month following the sale. One-fourth of the manufacturing costs are paid in the month in which they are incurred and the other three-fourths in the following month. Depreciation, insurance, and property taxes represent $6,400 of the monthly selling and administrative expenses. Insurance is paid in February, and property taxes are paid yearly in September. A $40,000 installment on income taxes is to be paid in April. Of the remainder of the selling and administrative expenses, one-half is to be paid in the month in which they are incurred and the balance in the following month. Capital additions of $250,000 are paid in March.
Current assets as of March 1 are composed of cash of $45,000 and accounts receivable of $51,000. Current liabilities as of March 1 are composed of accounts payable of $121,500 ($102,000 for materials purchases and $19,500 for operating expenses). Management desires to maintain a minimum cash balance of $20,000.
Required:
Prepare a monthly cash budget for March and April.
Solved
Show answers
More tips
- A Animals and plants Man s Best Friend: Which Dog Breed Is the Most Friendly?...
- H Health and Medicine 10 Simple Techniques on How to Boost Your Mood...
- G Goods and services How to Choose the Right High Chair for Your Baby?...
- S Style and Beauty Learn how to tie a keffiyeh on your head like a pro...
- S Style and Beauty How to braid friendship bracelets?...
Answers on questions: Business
- B Business Given the following information for Blue Bell Company for last year: Net sales (all on account) $5,200,000 Cost of goods sold 2,080,000 Interest expense 240,000 Income tax expense...
- B Business Which one of the following statements is TRUE? a. An agency conflict between inside owners/managers and outside owners occurs when the outside owners sell their shares to someone...
- B Business Digby has a new design for their product Daft next round that can reduce their material cost of producing units from $8.14 $7 32. Digby passes on half of all cost savings by cutting...
- B Business Which of the following is the minimum educational requirement for administrators and administrative support? A. high school degree B. associates degree C. bachelors degree D. masters...
- B Business Which of the following are examples of possible fixed costs? A. Wages of workers B. Raw material C. Neither of the above D. Both of the above...
- B Business Stone Cold Brew is a successful brewery engaged in the development and production of specialty micro brews. It uses manufacturing cost hierarchy to allocate costs to various activities....
- B Business An outside supplier has offered to supply outdoor Life with the bindings for $14 each including shipping costs to its facility. If Outdoor Life accepts the offer it will be able...
- B Business Roberts Company manufactures phones in a two-department process that involves Assembly and Finishing. The Assembly Department reported the follow data for the past month: Direct...
- M Mathematics Answer this plz means alot...
- A Advanced Placement (AP) PLS HELP GIVE BRAINLIEST Which of the following is an important cultural landmark for the Christians? A. Mecca and Medina B. the Tombs of the Prophets C. the ancient mosque of Al...
Ответ: