Sales Budget for Flory's Kitchen Shop
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04. The budget director of Flory's Kitchen Shop has prepared the following sales budget. The company had $100,000 of accounts receivable at January 1. The company normally collects 100 percent of its accounts receivable in the month following the sale.
Required:
(a) Complete the schedule of cash receipts by filling in the missing amounts. What are the total budgeted cash receipts for the first quarter.
(b) Determine the amount of accounts receivable that Flory's should report on the first quarter pro forma balance sheet.
05. A management accountant was working on a cash budget for Barcelona Company when he accidentally spilled his coffee. Some of the liquid splattered on his working papers rendering a few of the amounts illegible. The budget with missing amounts indicated is provided below:
The company desires a cash cushion of $5,000 to start each month. In any month in which there is cash shortage the company's bank will extend it a loan equal to the shortage amount. The loan is assumed to have been made on the last day of the month. Any time the company has a cash surplus it must repay as much of any outstanding loans as possible. The bank charges monthly interest of 1% on any outstanding loan balance.
Required: Compute the missing amounts and enter them in the following table:
a) ________ i) _________
b) ________ j) _________
c) _________ k) _________
d) _________ l) ________
e) ________ m)_________
f) ________ n) _________
g) ________ o) __________
h) ________ p) _________
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The solution has various questions relating to managerial accounting
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Please see the attached file.
04. The budget director of Flory's Kitchen Shop has prepared the following sales budget. The company had $100,000 of accounts receivable at January 1. The company normally collects 100 percent of its accounts receivable in the month following the sale.
Required:
(a) Complete the schedule of cash receipts by filling in the missing amounts. What are the total budgeted cash receipts for the first quarter.
(b) Determine the amount of accounts receivable that Flory's should report on the first quarter pro forma balance sheet.
Jan Feb March
Current Cash Sales 30,000 66,000 72,000
Collection of ...
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