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Cash Budgeting

Accounting: Estimating Cash Budget

The Smith Company, a merchandising firm, has planned the following sales for the next four months: January February March April 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

Develop a master budget in excel - Harrison Company

PROJECT ONE HARRISON COMPANY BUDGET INSTRUCTIONS Below you will find the data for Project One. You will be completing budgets and schedules for the firm's first quarter of operations in the year 20XY. Do all schedules and budgets showing the three months of January-March and a Total column, except for the balance sheet

Preparing a budgeted income statement and balance sheet

Beginning cash balance of July 1 is $63,000. Cash receipts from sales: 30% is collected in the month of sale, 50% in the next month, and 20% in the second month after sale (uncollectible accounts are negligible and can be ignored). Sales amounts are: May (actual), $1,700,000: June (actual), $1,200,000; and July (budgeted),

Budgeting; managerial accounting, practice exam problem

Use the following information to solve for a, b, and c. Coles Company, Inc. makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Product R. Budgeted production of Product R for the next five months is as follows: Augustâ?¦â?¦â?¦â?¦â?¦. 14,000 units Septemberâ?¦â

Prepare schedule of budgeted cash receipts for Hospital Highline Hospital

A (only one part) Cash Budgeting for a Hospital Highline Hospital provides a wide range of health services in its community. Highline's board of directors has authorized the following capital expenditures: Intra-aortic balloon pump $1,400,000 Computed tomographic scanner 850,000 X-ray equipment 5

Financial Plan for Juan's Taco Company

Juan's Taco Company has restaurants in five college towns. Juan wants to expand into Austin and College Station and needs a bank loan to do this. Mr. Bryan, the banker, will finance construction if Juan can present an acceptable three-month financial plan for January through March. The following are actual and forecasted sales

Preparation of cash budget.

The treasurer of Unisyms 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%

Preparing Sales, Production, and Fabric Purchases Budgets

53. Curiosity Corner sells books and various other reading-related products. One of the store's most popular reading-related products is a book pillow for hard cover and soft cover books. The pillows each sell for $8.00. Originally the pillows were handmade by a local artisan. The store's owner has been impressed with the demand

Constructing a Cash Budget: Example Problem

XYZ Corporation's budgeted monthly sales are $4,500. Forty percent of its customers pay in the first month and take the 1 percent discount. The remaining 60 percent pay in the month following the sale and don't receive a discount. XYZ's bad debts are very small and are excluded from this analysis. Purchases for next month's sale

Working Capital and Capital Budgeting

A 4-year project is expected to generate sales of $1,500, $1,800, $1,800, and $1,650 in year 1, year 2, year 3, and year 4 respectively. The working capital requirement is estimated to be: 10% of sales in cash, 30% of sales in account receivables, and 40% of sales in inventory. The account payable related to the project is estim

Budgets: Gulf Corporation

Hello, I need help filling out a budget for class. I have attached an Excel file with the fields needing to be filled out. Thank you. See *ATTACHED* file for complete details! ----------- Spreadsheet Format Each sheet of your workbook should include your name, course and section number, and the date. You will have t

Prepare a Cash Distribution Budget

Pete's Pasta (which sells meat & veggie pastas) needs a cash budget for year 3 and has given the following info. Sales are all on account & are estimated to be collected over a 3-month period, with 70% collected in the month of sale, 25% collected in the next month, and 4% collected in the third month. The remaining 1% is esti

Cash Budget for the next three months

Susie's Cakes by Design expects sales of $100,000 during each of the next three months. It will make monthly purchases of $60,000 during this time. Wages and salaries are $10,000 per month plus 5% of the sales. Susie expects to make a tax payment of $20,000 the first month, a $15,000 purchase of fixed assets the second month,

XYZ Corporation's budgeted monthly sales are $4,500.

XYZ Corporation's budgeted monthly sales are $4,500. Forty percent of its customers pay in the first month and take the 1 percent discount. The remaining 60 percent pay in the month following the sale and don't receive a discount. XYZâ??s bad debts are very small and are excluded from this analysis. Purchases for next month's

Expected cash balance

MacKenzie Ltd. expects the following transactions and events to take place in the upcoming Year 3: Sales projected for Year 3 $2,400,000 (10% of all sales are cash sales, 60% of the remaining sales are collected in the following year and the remainder in the 3rd year) Total

Prepare a cash budget forecast for January and February.

I have to prepare a cash budget for a company. Here are the details: The store's beginning balance is 10,300 in cash. Management forecast that collections from credit customers will be $11,400 in January and $14,800 in February. The store is scheduled to receive $5,000 cash on a business note payable in January. Project

Financial Management for Cyrus Brown Manufacturing

I need assistance with this assignment. Please provided original responses, not what has been submitted previously, and include references. Thanks! Assignment: 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

Budgeting in a Nutshell; An Ethical Dilemma

See attached file. CASE 23.1 Budgeting in a Nutshell The purpose of this problem is to demonstrate some of the interrelationships in the budgeting process. Shown below is a very simple balance sheet at January 1, along with a simple budgeted income statement for the month. (Assume dollar amounts are stated in thousands; yo

Accounting F-12

*Please describe how to calculate!!!! Tappet Corporation is preparing its master budget fo the quarter ending March 31. It sells a single product for $25 a unit. Budgeted sales are 40% cash and 60% on credit. All credit sales are collected in the month following the sales. Budgeted sales for the next four months follow:

Budgets : key information

*Please describe how to calculate. ABC company started business on January 1, 2010. The company estimated that sales for the first six months would be as attaches: *Please look at the attachment The Company sells all items on account and expects collections of accounts receivable to be as follows: 60% in the month of th

Master Budget -Cash Sales and Credit Sales Examined

*Please look at the attachment *Please describe how to solve the answers. Near the end of 2009, the management of Pak Corp., a merchandising company, prepared the following estimated balance sheet for Dec 31, 2009. To prepare a master budget for January, February, and March of 2010, management gathers the following info

Working capital management involves the relationship between a firms short term assets and short-term liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivables and payables, and cash. Working capital management policies are implemented to assure the safety of organizational assets, provide required liquidity for operations, obtain the best banking relationships, and attain reasonable return on all funds. Aggressive capital management results in capital being minimize in current assets versus long-term investment. This has the expectation of higher profitability but greater liquidity risks. As an alternative, a more conservative policy places a greater proportion of capital in liquid assets, but at the sacrifice of some profitability. To measure the degree of aggressiveness the current asset to total asset ratio is used with a lower ration, meaning a relatively more aggressive policy must be integrated in an effort to prepare for adequate financial planning procedures (Weinraub, et al, 1998). Cash budgeting involves planning for the inflows of cash into the business so there is cash available to meet operational expenditures. Proper cash management allows for smooth, uninterrupted operations of the business. Poor cash management can result in costly business operations and delays. Therefore, making projections of cash flow in and out of the business should be constructed and monitored on a regular basis.

Working capital management involves the relationship between a firms short term assets and short-term liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. The

G Enterprises

G Enterprises had sales of $50,000 in March and $60,000 in April. Forecast sales for May June and July are $70,000, $80,000 and $100,000 respectively. The firm has a cash balance of $5000 on May 1st and wants to maintain a minimum cash balance of $5000. Prepare and interpret a cash budget for May June and July 1-the firm make

Cash Budget - Renson Corporation

Renson Corporation, a wholesaler, provided the following information: Month Merchandise Purchases Sales January $142,000 $172,000 February 148,000 166,000 March 136,000 165,000 April 154,000 178,000 May 160,000 166,000 Customers pay 60% of their balances in the month of sale, 30% in the month follo

Crafts: Assumptions for pro formas and the cash budget.

See attached Excel file. Budget/Proforma with more assumptions The manager of Crafts needs to have information about how switching to level production will affect the company's profits and loan need. Assumptions for pro formas and the cash budget. Switching to level production will not affect Sales, Accounts Receivab

Cash Collection Budget

Cash Collection Budget Ana cortes Antiques offers a 2% discount to customers who pay cash at the time of sale and a 1% discount to customers who pay within the first 10 days of the month after sale. Past experience shows that cash collections from customers tend to occur in the following pattern: Cash collected at time of sale