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Cash Budgeting

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

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

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

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 Budgets

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

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

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

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

Multiple Choice Questions on Cash Budgeting

1. Standard costs are: A. Actual costs incurred to produce a specific product or perform a service B. Preset costs for delivering a product or service under normal conditions C. Established by the IMA D. Rarely achieved E. Uniform among companies within an industry 2. A company's flexible budget for 12,000 units of prod

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


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

Prepare a Cash Budget for Oxford Company

The Oxford Company has budgeted sales revenues as follows:   July August September Credit sales $30,000 $24,000 $18,000 Cash sales 18,000 51,000 39,000 Total sales $48,000 $75,000 $57,000 (Please see attached file for fully-formatted data tables.)   Past exper

Accounting - multiple choice

1. Sarbanes-Oxley legislation is not concerned with: a) Improving internal control b) Corporate governance c) Monitoring of managers d) Disclosure practices of private companies 2. Sales total $360,000 when variable costs total $270,000 and fixed costs total $80,000. The break-even point in sal

Accounting: Sales Budget and Cash Receipts

Scenario: Dorough Pointers Inc. expects to begin operations on January 1, 2009; it will operate as a specialty sales company that sells laser points over the Internet. Dorough expects sales in January 2009 to total $120,000 and to increase 10 percent per month in February and March. All sales are on account. Dorough expects to c

Preparation of a cash budget

(Preparation of a cash budget) projected sales for the first eight months of 2010 as follows: January $100,000 April $300,000 July $200,000 February 120,000 May 275,000 August 180,000 March 150,000 June 200,000 collects 20 percent of its sales in the month of the sale, 50 percent in the month following the sale, and the r

Preparation of a Cash Budget Under Two Alternatives

Preparation of a Cash Budget Under Two Alternatives Each autumn, as a hobby, Suzanne De Angelo weaves cotton place mats to sell at local crafts shop. The mats sell for $ 20 per set of four. The shop charges a 10% commission and remits the net proceeds to De Angelo at the end of December. De Angelo has woven and

Budgets vs rolling forecasts, budget tools, inputs to master budgets

1. According to information posted by the Oregon Society of Certified Public Accountants, the current trend for businesses in relation to budgeting is changing a direction to "flexible budget tools." The information posted also indicates that "more companies are abandoning budgets in favor of rolling forecasts." In essence mos

Short Report on Cash Budgeting Problem

1. You work for Keafer Inc., a small, family-owned manufacturer of custom cardboard boxes. Up until now, payables and receivables were handled haphazardly with little planning. You have been hired to apply the skills you learned in business school to institute some formality to the process. Currently the firm has a cash balance

Description of Accounting: Cash budget

Please help with the following problem. Signal Florists (SF) operates a retail flower shop. Their sales for October total $5,000. They have projected revenue for the next three months as follows: November $12,000 December $23,000 January $8,000 February $10,000 SF allows its customers a 3% discount if the

Budget Lesson in Excel


Reasons for holding cash and the need for cash budgeting

I. Winner Where She Goes, Inc. is considering an investment of $800,000 in a new equipment line for boning and packaging beef products. The equipment has an expected life of 5 years. Sales are expected to be 900,000 units per year, at a price of $3 per unit. Fixed costs excluding depreciation are $300,000 per year, and variable