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# Cash Budgeting

### 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

### Accounting What The Numbers Mean: Problem 14.18

Sales, production, purchases, and cash budgets: Rolen, Inc., is in the process of preparing the fourth quarter budget for 2010, and the following data have been assembled: â?¢ The company sells a single product at a price of \$ 25 per unit. The estimated sales volume for the next six months is as follows: September . . . . .

### 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

### Cash Budget and Uncertainty in Business Financing Needs

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 nine months: March 2004 \$250,000 April 275,000

### 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:

### Budgeting - Cash Budget - Anker Co.

Use the following information to prepare the July cash budget for Anker Co. It should show expected cash receipts and cash disbursements for the month and the cash balance expected on July 31. a. Beginning cash balance on July 1: \$63,000. b. Cash receipts from sales: 30% is collected in the month of sale, 50% in the ne

### 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

### Managerial finance

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 nine months: March 2004 \$250,000 April 275,000 May

### 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

### Should Caledonia focus on cash flows or accounting profits in making our capital-budgeting decisions? Should we be interested in incremental cash flows, incremental profits, total free cash flows, or total profits?

I N T E G R AT I V E P R O B LEM It's been two months since you took a position as an assistant financial analyst at Caledonia Products. Although your boss has been pleased with your work, he is still a bit hesitant about unleashing you without supervision. Your next assignment involves both the calculation of the cash fl

### Variable Costing; Activity-Based Costing; Profit Planning; Flex. Budgets & Performance Analysis

Please see the attached Word 2007 document that includes screen-shots/pictures in the questions. Thanks for your help!! 1. Which of the following statements is true? A. When production exceeds sales, a manufacturing company's variable costing net operating income will usually be greater than its absorption costing net o

### 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

### Sales Budget Schedule and Cash Collections - The Gap

Suppose a Gap store has the following data: Accounts receivable, May 31: (.3 × May sales of \$350,000) = \$105,000 Monthly forecasted sales: June, \$410,000; July, \$440,000; August, \$500,000; September, \$530,000. Sales consist of 70% cash and 30% credit. All credit accounts are collected in the month following the sales. Uncol

### 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

### Cash Budget Analyst

Imagine it is July 2009 and you are a budget analyst for your company that makes seasonal items. Create a cash budget for the months July through December using the sales estimates and other information about the company given below. Sales forecast Month Sales (in thousands) May 200 June 200 July 400 August 500 Septembe

### Ledford Corporation: Prepare the Cash Budget for June

See attached file. Ledford Corporation has the following information available from various schedules to prepare its cash budget for the June: Receipts: Sales (terms 2/10, net 30): May \$90,000, June \$100,000, July \$120,000 Collection pattern: 65% in month of sale, 70% take the discount 35% in month after sale Income f

### Master Budget

1. Prepare a budgeted income statement for the coming June through August quarter. Prepare a cash budget (for each of the next three months), and a budgeted balance sheet for August 31, 20X8. All operations are evaluated on a before-income-tax basis, so income taxes may be ignored here. 2. Explain why there is a need for a b

### Example Cash Budgeting Problems

Use Microsoft Excel and use formulas. On January 1 Winter Snow begins business. This company is operated as a sole proprietorship. The company received \$18,000 cash, \$8,000 contributed by the owner (Taylor Snow), and \$10,000 from a short-term note payable received on the first day of business. They are attempting to project c

### Prepare a cash budget for Sharpe Corp. covering the first seven months of 2004.

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 m

### Budgeting and Profit Planning II

--attached The Beaver Corporation has budgeted sales for next year as follows: _ Quarter _ First Second Third Fourth Sales in Units........................10,000 13,000 16,500 15,000 1. The ending inventory of finished goods for each quarter shou

### Master Budgeting for Resha Company: sales, cash receipts and purchases budget

I have attached a excel sheet with all these statments formatted. Resha Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, 2009. The company president formed a planning committee to prepare a master budget for the first three months

### Calgon Products: Prepare expected cash collections, disbursements and cash budget

Please see attachment which has the format for the homework. EXERCISE 7-12 Schedules of Expected Cash Collections and Disbursements; Cash Budgets (LO2, LO4, LO8) You have been asked to prepare the September cash budget for Calgon Products, a distributor of organic beverages. The following information is available: a.

### Monthly cash budget

1 Excel Spreadsheet and 1 Word doc page Details: Please read the relevant parts of your textbook which refer to cash flow and financial planning. 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 Br