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, 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;
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
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
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
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
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
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
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
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
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
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
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
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
Once individual annual budgets have been prepared, they are combined into a larger budget called the master budget. Some of the budgets included in the master budget are sales, purchases, operating expenses, capital, and cash budgets. Choose a company in the manufacturing industry, and describe some items that one would expec
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
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
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) 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 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
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
1. Without a budget, how do you think this company can ensure they turn a profit? 2. Do you think that budgeting should be used primarily for score keeping, attention directing, or problem solving? 3. With the drawbacks to budgets, and the integrity issues they might create, is it better to not use budgets at all?
Prepare a Schedule of Expected Cash Collections, Prepare a Merchandise Purchases Budget, Prepare Cash Budgets , and budget income.
1. Weltin Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store's operations follow: * Sales are budgeted at $390,000 for November, $370,000 for December, and $380,000 for January. * Collections are expected to be 90% in the month of sale, 5% in the month following th
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
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
See attached excel file ---------------------- INSTRUCTIONS: YOU ARE PREPARING THE BUDGET FOR DELUXE LAWNMOWER COMPANY. BELOW IS THE FIRST PART OF THE SALES BUDGET. COMPLETE THIS BUDGET. SALES BUDGET SALES PRICE OF THE DELUXE MODEL IS $250 DELUXE LAWNMOWER USE A FORMULA IN OR FILL IN A N
Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below:
Minden Company is a wholesale distributor of premium European chocolates. The company's balance sheet as of April 30 is given below: Minden Company Balance Sheet April 30 Assets Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,000 Accounts receivable . . . .
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
See attached file for data. Guillermo Furniture, a company that manufactures midgrade and high-end sofas, has just hired you as an accountant. The owner, Guillermo Navallez, has assigned you the tasks of determining which decisions provide the greatest returns. Recommend a course of action based on a capital budget evaluat