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# Cash Budgeting

### Materials Purchases Budget

A materials purchases budget must be completed immediately after the preparation of the a. direct labor budget b. operating expense budget c. cash budget d. production budget

### Mercy Inc. Ratios, Silver Manufacturing Cash Budget

Mercy Inc. has submitted to you a BS summary data for 2008 and 2009. The company recorded a Net Income in millions of \$212 for 2009 MERCY INC. Condensed Balance Sheets December 31, 2008 and 2009 2009 2008 Cash

### HOW TO SHOW MATH CALCULATIONS

4.Complete the Cash Budget for the following Company with the following known data and past experience activity rates: January February March SALES : \$220,000 \$272,000 \$304,000 CASH (Receipts) : There is NO remaining balance or cash due from D

### Using the knowledge of ratios, look at the numbers above and see if you can identify Tex's problems

1. Using the knowledge of ratios, look at the numbers above and see if you can identify Tex's problems. Assume all sales are credit Net 30 sales. What advice would you offer Tex in order to help out the situation. Should Tex liquidate some of his investments to pay his bills until something changes? How is he going to get the mo

### Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CBM).

To avoid any uncertainty regarding his business' financing needs at the time when such needs may arise, Cyrus Brown wants to develop a cash budget for his latest venture: Cyrus Brown Manufacturing (CBM). He has estimated the following sales forecast for CBM over the next 9 months: March \$100,000 April \$275,0

### Cost Accounting-Master budget

You will be required to develop a schedule of quarterly cash flows. The company wants to maintain minimum cash balance at the end of each quarter at >>>>> \$150,000 Money can be borrowed or repaid in multiples of \$5,000 at an interest rate of 10% annually. Management does not want to borrow any more cas

### Budgets - Johnson Company

Johnson Company is a manufacturing company. Its balance sheet for the year ending December 31, 2010, is presented below. Johnson Company Balance Sheet Year Ending December 31st, 2010 Cash \$20,000 Accounts Payable \$ 6,800 Short-term Investments 4,000 Long-term Debt 80,000 Accounts Receivable 50,000 Total Liabili

### Mary and Kay, Inc. a distributor of cosmetics throughout Florida - Schedules for Cash Budgets

Mary and Kay, Inc. a distributor of cosmetics throughout Florida, is in the process of assembling a cash budget for the first quarter of 20x1. The following information has been extracted from the company's accounting records: All sales are on account. Sixty percent of customer accounts are collected in the month of sale;

### Tom's Toyota Company: static budget, flexible budget

Question 1. Prepare a budget for this year for the Administrative Department at Tom's Toyota Company based on the following information: Last Year Forecasting Assumption Budget for this Year Salaries \$60,000 2% increase ___________ Stationary \$ 900 1% decrease ___________ Telephone \$ 2,500 3% increase

### Prepating a Cash Budget - Lansing Auto Part Example

Lansing Auto Parts, Inc. has projected sales of \$25,000 in October, \$35, 000 in November, and \$30,000 in December. Of the company's sales, 20 percent are paid for in cash, and 80 percent are sold on credit. The credit sales are collected one month after the sale. Determine collections for November and December. Also assume tha

### Financial Analysis Balance Sheet

One year of projected Income statement and Balance sheet (BS is optional) (b) Analysis of projection attainment risks (c) Ratios and then written analysis. (d) Common Size Financial Statement for each statement already presented and written analysis. (e) Graphs

### Budget Assumptions" What changes could the company make if they wanted to maintain a cash balance of \$650,000, rather than \$350,000?

Theorize the following questions based upon provided data. See attached file. a. What changes could the company make if they wanted to maintain a cash balance of \$650,000, rather than \$350,000? b. What is the company's cost of borrowing was 6%, rather than 12%? What recommendations would you make to them? c. What is the co

### Predicting Future Cash Flow

Swiss Valley Veterinary Products distributes animal health care products to commercial livestock producers throughout the United States and Europe. The terms of sale require cash payment within 30 days, and most producers take full advantage of this payment option. Swiss Valley buys health care products on credit from multinatio

### Steps to creating a cash budget

What are the steps to creating a cash budget? Which is most difficult? Explain your answer.

### Top down budgeting vs. Integrative Budgeting

Discuss what your reaction(s) might be to the top-down budgeting technique. Compare and contrast your reaction(s) to top-down budgeting with what your reaction(s) might be to budgets prepared according to the steps: (Carefully consider your response(s). (1) dissemination of guidelines stating the overall plans and poli

### cash budget for May, June, and July

Burt's Dirt Corp. (BDC) had sales of \$2 million in March and \$2.2 million in April. Expected sales for the next three months are \$2.4 million, \$2.5 million, and \$2.7 million. Bachrach has a cash balance of \$200,000 on May 1 and does not want its balance to dip below that level. Prepare a cash budget for May, June, and July give

### Monthly cash balance

CDLater's projected sales for the first four months of 201X are: January \$60,000 February \$55,000 March \$65,000 April \$70,000 The firm expects to collect 10 percent of sales in cash, 60 percent in one month, and 25 percent in two months with 5 percent in uncollectible bad debts. Sales for the previous November and Decemb

### Cash Budget for One Quarter

Please explain how to do a cash budget for one quarter. The following information is available for the Dixon Company for the first quarter of 2005. Apr May Jun Budgeted Receipts from Credit Sales 500,000 520,000 550,000 Budgeted Cash Sales 100,000 105,000 112,000 Budgeted Cash Payments 670,000 615,000 627,000 Beginni

### Earrings Unlimited Case 9-30 CASE 9-30 Master Budget with Supporting Schedules

See attached for exhibits and better formatting. CASE 9-30 Master Budget with Supporting Schedules [LO2, LO4, LO8, LO9, LO10] You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the compan

### Guillermo Furntirue: Five Year Pro Forma Cash Flow Budget

See attached Excel file. Create a pro forma cash flow budget for the organization for at least the next 5 years.

### Gizmo, Inc. is working on its cash budget for November

5. Gizmo, Inc. is working on its cash budget for November. The budgeted beginning cash balance is \$24,000. Budgeted cash receipts total \$177,000 and budgeted cash disbursements total \$167,000. The desired ending cash balance is \$50,000. To attain its desired ending cash balance for November, the company needs to borrow:

### McFriendly Software offer from Jupiter for software rights

1. McFriendly Software recently developed new spreadsheet software, Easy-Calc, which it intends to market by mail through ads in computer magazines. Just prior to introducing Easy-Calc, McFriendly receives an unexpected offer from Jupiter Computer to buy all rights to the software for \$10 million cash. Instructions a. Is t

### The Operation Budget

The following budgeted information is available for the Top Cost Clothing Company for January 2005. Salaries \$120,000 Rent 9,000 Utilities 1,200 Depreciation \$3,200 Other Expenses 1,500 Purchases 380,000 Selling and administrative expenses are paid in the month incurred and purchases are paid in the m

### Outline of a cash flow statement (line items, no amounts)

Create a Cash Flow Budget Spreadsheet template a) Create three sections - Operating, Investing and Financing and create line items within each section that relate to each of these sections b) On your template, create line items for beginning cash, change in cash, ending cash

### accounting for bugeting and planning

Question 1: Managerial Planning and Ethics Robert Leyland, the marketing manager for a division that produces a variety of paper products,is considering the divisional manager's request for a sales forecast for a new line of paper napkins. The divisional manager has been gathering data so that he can choose between two differ

### Budgeting for Product ABC: Prepare a budget variance report using a flexible budget.

The production costs for product ABC are as follows: Direct Labor \$6.00 per unit 20 minutes of labor Raw materials \$15.00 per unit 1 pounds of raw material Variable Overhead \$3.00 per u

### Fiscal Year Comparison: Budget vs. Actual

(Masters Study Level) The company referenced in the attached financials recently ended its most recent fiscal year ending December 31, 2010. Using the Income Statement and Balance Sheet provided (see attached file), identify key financial performance achievements for the Company in the most current fiscal year. Income Sta

### PrimeTime Sportswear: Prepare a cash budget

See attached file for the tables. PrimeTime Sportswear is a custom imprinter that began operations six months ago. Sales have exceeded management's most optimistic projections. Sales are made on account and collected as follows: 50% in the month after the sale is made and 45% in the second month after sale. Merchandise purcha

### accounting

Forest Outfitters is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts \$ 363,000 \$ 680,000 \$ 416,000 \$ 489,000 Total cash disbursements \$ 524

### The Sharpe Corporation's projected sales for the first eight months of 2004 are as follows: January \$ 90,000 May \$300,000 February 120,000 June 270,000 March 135,000 July 225,000 April 240,000 August 150,000 Of Sharpe's sales, 10 percent is for cash, another 60 percent is collected in the month following sale, and 30 percent is collected in the second month following sale. November and December sales for 2003 were \$220,000 and \$175,000, respectively. Sharpe purchases its raw materials two months in advance of its sales equal to 60 percent of their final sales price. The supplier is paid one month after it makes delivery. For example, purchases for April sales are made in February and payment is made in March. In addition, Sharpe pays \$10,000 per month for rent and \$20,000 each month for other expenditures. Tax prepayments of \$22,500 are made each quarter, beginning in March. The company's cash balance at December 31, 2003, was \$22,000; a minimum balance of \$15,000 must be maintained at all times. Assume that any short-term financing needed to maintain the cash balance is paid off in the month following the month of financing if sufficient funds are available. Interest on short-term loans (12 percent) is paid monthly. Borrowing to meet estimated monthly cash needs takes place at the beginning of the month. Thus, if in the month of April the firm expects to have a need for an additional \$60,500, these funds would be borrowed at the beginning of April with interest of \$605 (.12 - 1/12 - \$60,500) owed for April and paid at the beginning of May. a. Prepare a cash budget for Sharpe covering the first seven months of 2004. b. Sharpe has \$200,000 in notes payable due in July that must be repaid or renegotiated for an extension. Will the firm have ample cash to repay the notes?

4-6A. (Cash budget) The Sharpe Corporation's projected sales for the first eight months of 2004 are as follows: January \$ 90,000 May \$300,000 February 120,000 June 270,000 March 135,000 July 225,000 April 240,000 August 150,000 Of Sharpe's sales, 10 percent is for cash, another 60 percent is collected in the month foll