Rob runs a small family restaurant that operates on a cash basis. All sales are for cash, but materials necessary to the preparation of meals and drinks are bought on trade credit terms of 2/30 net 60. Sales forecast for the next six months is: Jan 25000 Feb 30000 Mar 40000 Apr 50000 May 30000 Jun 25000 M
Complete a cash forecast covering three months of business using the included data. A firm has actual sales of $65,000 in April and $60,000 in May. It expects sales of $70,000 in June, $100,000 in July, and $100,000 in August. One quarter (25%) of these sales are cash. Of the credit sales, 70% are collected one month after
Mogel Enterprises, a chocolate distribution company, prepares its master budget on a monthly and quarterly basis. For the months of January, February and March , you are to compute the: (a) Schedule of expected cash collections (b) Inventory purchase budget and Cash Disbursements (c) Cash budget Facts: (1) Act
Using the information attached, construct a monthly cash budget for Pepperton for January through March 2006. Does it appear from your results that the treasurer should be concerned about investing excess cash or looking for a bank loan?
What is the main reason for preparing a cash budget in the master budgeting process? What additional steps need to be taken for seasonal businesses to ensure an optimal outcome? What are the risks associated with inaccuracies in preparing the pro forma income statement and cash budget?
What can be done to help smooth out major fluctuations in a firm's cash balances?
P1. Longhorn Casing, Inc. supplies pipe and other materials to energy companies. It has actual sales of $65,000 in January and $60,000 in February. It expects sales of $70,000 in March, $100,000 in April, and $100,000 in May. One quarter (25%) of these sales are cash. Of the credit sales, 70% are collected one month after t
Operating cash flows, rather than accounting profits, are the basis for which capital budgeting projects are evaluated. What is the basis for this emphasis on cash flows as opposed to net income?
For this assignment you will create a financial business plan that will tie together an income statement, a purchases budget, a cash budget, and a pro forma balance sheet. The first step is to produce the income statement.
For this assignment you will create a financial business plan that will tie together an income statement, a purchases budget, a cash budget, and a pro forma balance sheet. The first step is to produce the income statement. Income Statement To complete this first step, we need to project monthly sales and expenses. This requi
Atlantico, Inc. is a small, rapidly growing wholesaler of consumer electronic products. Product lines are small kitchen appliances and power tools. The firm's general manager recently completed a sales forecast. The general manager believes the company's sales during the first quarter of 2005 will increase by 10 percent each
Prepare a cash budget for Elmwood Manufacturing Company for the first three months of 2007 based on the following information. (See information attached as a file) The company has found that approximately 40% of sales are collected during the month the sale is made and the remaining 60% are collected during the month follo
(see attached for full problem description) EXERCISE 7-12 Sales and Production Budgets (LO2,LO3) The marketing department of Graber Corporation has submitted the following sales forecast for the upcoming fiscal year. 1st quarter 2nd quarter 3rd Quarter 4th Quarter Budgeted sales (units) 16,000 15,000 14,000 15,000 T
(See attached file for full problem description) --- Master Budget with Supporting Schedules You have been hired as a new management trainees by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past, the company has done very little in the way o
The Webster's Company sells on credit terms of net 45. Its accounts are on average 45 days past due. If annual credit sales are $5 million, what is the company's balance in accounts receivable?
Fruity Juice Company plans to sell 800,000 bottles of its best-selling fruit juice blend during the first quarter of 2005 at a price of $12 per bottle. Budgeted sales for the first four months of 2005 are: January ........................................ 200,000 bottles February ...................................... 250
Reporting Explain how the project manager will communicate performance evaluation results to both management and the customer. Include the results of the cost and schedule variance analysis, and discuss formulating cost/schedule/performance alternatives, forecasting budget and schedule completion, methods of corrective action
Hickman Avionics's actual sales and purchases for April and May are shown here along with forecasted sales and purchases for June through September. Sales Purchases April (actual) $410,000 $220,000 May (actual) 400,000 210,000 June (forecast) 380,000 200,000 July (forecast) 360,000 250,000
Prepare a cash budget for Joes Bar and Grill based on the following information: Sales are projected to be 100 in Jan, 150 in Feb, 300 in Mar and 100 in Apr. Collections are 50% in the month of sale and 50% one month after the sale. Collections one month after the sale are reduced by the credit card fee of 2%. C
Sipan Retail Company was recently created with a beginning cash balance of 12,000. The owner expects the following for the first month of operations: Cash sales to customers 8,000 Sales on account to customers 30,000 Cash collected from account customers 12,000 Cost of merchandise purchased 35,000 Cash paid
Carter Company has projected sales and production in units for the second quarter of next year as follows: April May June Sales 60,000 40,000 50,000 Production 50,000
Jen Kim is the manager of an airport gift shop. Kim News and Gifts. From the foolowing data, Ms. Kim wants a cash budget showing expected cash receipts and disbursements for the month of April and the cash balance expected as of April 30, 20X4. -Bank note due April 10:$90,000 plus $4,500 interest -Depreciation for April
Consider the income statement in exhibit 7-12 The cash balance may 31 2004 is $15000, Sales proceeds are collected as follows: 80% month of sale, 10% second month, 10% third month Accounts receivable are $40000 on May 31, 2004, consisting of $16000 from April sales and $24,000 from May sales. Accounts payable on May 31,
Pioneer square carpet specialties has found that cash collections from customers tend to occur in the following pattern Collected within cash discount period in month of sale 50% Collected within cash discount period in first month after month of sale 10% Collected after cash discount period in first month after mo
Why does capital budgeting relies on analysis of cash flows rather than on net income?
All enterprises must develop budgets and control systems for their finances, explain how a company would develop such systems, and outline how such systems can be used to evaluate and improve company performance.
Prepare a comprehensive 6-month budget, including supporting schedules and a report for the period January 1, 2004 to June 30, 2004 for XYZ written summary report, outlining the main issues and problems identified during the budgeting process and suggestions for improving the budget forecast. including profitability, cash n
Holmes Corporation recently purchased a new delivery truck. The new truck costs $25,000 and is expected to generate net after-tax operating cash flows, including depreciation, of $7,000 at the end of each year. The truck has a 5-year expected life. The expected abandonment values (salvage values after tax adjustments) at dif
Suppose Ritz-Carlton has a 300 room hotel in the tropical climate. Management expects occupancy rates to be 95 percent in December, January, February, 85 percent in November March, and April and 70 percent the rest of the year. The average room rental is $250 per night. Of this, on an average 10 percent is received as a depos
Catherine O'Shea is the manager of an extremely successful gift shop, Kate's Gifts, which is operates for the benefit of local charities. From the data below, she wants a cash budget showing expected cash receipts and disbursements for the month of April, and the cash balance expected as of April 30, 2003: ? Bank note due A
EOQ and completing a cash budget (See attached file for full problem description and financial details) --- 1. A firm annually sells 7,890 units. The cost of placing an order is $100 and the carrying costs are $2 a unit. What is the EOQ, the duration of the EOQ, and how many orders are placed annually? If the safety stock i