Question

I need to do a cash budget and I need help.

Is it possible to have support? This is homework for my accounting class.

I have to do a Cash Budget, Schedule of Cash Collections from Sales, and Schedule of Payments for Manufacturing Costs. Also, I have to demonstrate how I did the calculations. Please HELP!!

5. Prepare a factory overhead cost budget for December 6. Prepare a cost of goods sold budget for December. Work in process at the beginning of December is estimated to be $29,000, and work in process at the end of December is estimated to be $35,400, 7. Prepare a selling and administrative expenses budget for December 8. Prepare a budgeted income statement for December. Obj. 5 PR 21-4A Cash budget ember The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget 58,500 for the next three months. You are presented with the following budget information: October November September $250,000 $300,000 $315,000 Sales 150,000 180,000 185,000 Manufacturing costs. Selling and administrative expenses TEMPLATE 42,000 48,000 51,000 200,000 Capital expenditures The company expects to sell about 10 % of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month, (second month following sale). Depreciation, insurance, and property tax expense rep- resent $50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the the manufacturing costs, 80 % are expected to be paid in the month in which they are incurred and the balance in the following month Current assets as of September 1 include cash of $40,000, marketable securities of $75,000, and accounts receivable of $300,000 ($60,0000 from July sales and $240,000 from August sales). Sales on account for July and August were $200,000 and $240,000, respectively. Current liabilities as of September 1 include $40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of $55,000 wil be made in October. Bridgeport's regular quarterly dividend of $25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of $50,000. inder of Instructions 1. Prepare a monthly cash budget and supporting schedules for September, October, and November On the basis of the cash budget prepared in part (1), what recommendation should 2. be made to the controller?

Answer 1

WORKING NOTE CASH BUDGET July sept September October november August Oct Nov Sales 315000 200000 240000 250000 300000 50000 50000 Opening Cash balance 40000 31500 Cash Sales 31500 Cash Sales 10% 25000 30000 25000 30000 Account Receivables 291500 Next Month collection 228000 277000 168000 175000 210000 Total Cash balance 373000 Following month 50000 60000 72000 293000 357000 291500 Account Receivable 228000 277000 Expenses Manufacturing Cost Selling & Admin Expenses 128800 Manufacturing Cost 150000 180000 185000 120000 120000 51000 48000 Less: Depreciation, Insurance 50000 50000 50000 42000 Income Tax Actual Manu. Cost 100000 135000 130000 55000 Quarterly Dividend Capital Expenditure 25000 Actual Manu. Cost Paid 80% 80000 104000 108000 200000 balace amount following month 404800 40000 16000 20800 162000 223000 Manufacturing Cost paid 120000 120000 128800 Available Cash Balance Closing Balance to be maintain Invest in marketable Security Sell marketable security -31800 131000 134000 50000 50000 50000 81000 84000 81800