Accounting Budgets
Question 4 (11 marks)
The following information pertains to the operating budgets for Casey Corporation.
• Budgeted sales: $200,000 in January and $100,000 in February.
• All sales are on credit. Collections for sales are 60% in the month of sale and 40% the next month.
• Cost of goods sold (COGS) is 75% of sales.
• Beginning accounts receivable is $0.
• Beginning inventory is $14,000.
• Beginning accounts payable is $80,000, of which 10% is related to sales in November the year before, the remainder is related to the sales in December the year before.
• All purchases are on credit. Purchases are paid 20% in the month of purchase, 60% the next month, the remainder in the month after the next.
• Desired ending inventory is 20% of next month's COGS.
Required: Compute the following:
(a) Budgeted cash receipt from customers in February. (2 marks)
(b) Budgeted Accounts Receivable balance at the end of February. (1 mark)
(c) Budgeted purchases for January. (4 marks)
(d) Budgeted cash payment to suppliers in January. Clearly show your workings in relation to purchases in relevant months. (4 marks)
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The following information pertains to the January operating budget for Casey Corporation. ∙ Budgeted sales for...
The following information pertains to the January operating budget for Casey Corporation. ∙ Budgeted sales for January $200,000 and February $100,000. ∙ Collections for sales are 60% in the month of sale and 40% the next month. ∙ Gross margin is 30% of sales. ∙ Administrative costs are $10,000 each month. ∙ Beginning accounts receivable is $20,000. ∙ Beginning inventory is $14,000. ∙ Beginning accounts payable is $65,000. (All from inventory purchases.) ∙ Purchases are paid in full the following...
3. Budget Questions (20 points) The following information pertains to the January operating budget for Casey...
3. Budget Questions (20 points) The following information pertains to the January operating budget for Casey Corporation. • • Budgeted sales for January $201,000 and February $101,000. Collections for sales are 40% in the month of sale and 60% the next month. Gross margin is 25% of sales. Administrative costs are $13,000 each month. Beginning accounts receivable is $25,000. Beginning inventory is $17,000. Beginning accounts payable is $73,000. (All from inventory purchases.) Purchases are paid in full the following month....
3. Budget Questions (20 points) The following information pertains to the January operating budget for Casey...
3. Budget Questions (20 points) The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January $201,000 and February $101,000. Collections for sales are 40% in the month of sale and 60% the next month. Gross margin is 25% of sales. Administrative costs are $13,000 each month. Beginning accounts receivable is $25,000. Beginning inventory is $17,000. Beginning accounts payable is $73,000. (All from inventory purchases.) Purchases are paid in full the following month. Desired ending...
The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January...
The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January $205,000 and February $104,000. Collections for sales are 40% in the month of sale and 60% the next month. Gross margin is 25% of sales. Administrative costs are $14,000 each month. Beginning accounts receivable is $29,000. Beginning inventory is $18,000. Beginning accounts payable is $68,000. (All from inventory purchases.) Purchases are paid in full the following month. Desired ending inventory is 30% of next...
The following information pertains to the January operating budget for Casey Corporation. ·Budgeted sales for January...
The following information pertains to the January operating budget for Casey Corporation. ·Budgeted sales for January $100,000 and February $200,000 -Collections for sales are 60% in the month of sale and 40% the next month Gross margin is 30% of sales Administrative costs are $10,000 each month · Beginning accounts receivable is $20,000 -Beginning inventory is $14,000 -Beginning accounts payable is $60,000 (All from inventory purchases) Purchases are paid in full the following month Desired ending inventory is 20% of...
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Managerial Accounting - Budgets
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods: Current assets as of March 31: Cash $ 8,800 Accounts receivable $ 25,200 Inventory $ 47,400 Building and equipment, net $ 114,000 Accounts payable $ 28,425 Common stock $ 150,000 Retained earnings $ 16,975 The gross margin is 25% of sales. Actual and budgeted sales data: March (actual) $ 63,000 April $ 79,000 May $ 84,000 June $ 109,000 July $ 60,000 Sales...
Problem 22-7AA Merchandising: Preparation and analysis of cash budgets with supporting inventory and purchases budgets LO...
Problem 22-7AA Merchandising: Preparation and analysis of cash
budgets with supporting inventory and purchases budgets LO P4
Aztec Company sells its product for $160 per unit. Its actual
and budgeted sales follow.
Units
Dollars
April (actual)
4,000
$
640,000
May (actual)
2,800
448,000
June (budgeted)
4,500
720,000
July (budgeted)
3,500
719,000
August (budgeted)
4,100
656,000
All sales are on credit. Recent experience shows that 26% of credit
sales is collected in the month of the sale, 44% in the month...
3. Budget Questions (20 points) The following information pertains to the January operating budget for Casey Corporation. • • Budgeted sales for January $201,000 and February $101,000. Collections for sales are 40% in the month of sale and 60% the next month. Gross margin is 25% of sales. Administrative costs are $13,000 each month. Beginning accounts receivable is $25,000. Beginning inventory is $17,000. Beginning accounts payable is $73,000. (All from inventory purchases.) Purchases are paid in full the following month....
3. Budget Questions (20 points) The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January $201,000 and February $101,000. Collections for sales are 40% in the month of sale and 60% the next month. Gross margin is 25% of sales. Administrative costs are $13,000 each month. Beginning accounts receivable is $25,000. Beginning inventory is $17,000. Beginning accounts payable is $73,000. (All from inventory purchases.) Purchases are paid in full the following month. Desired ending...
The following information pertains to the January operating budget for Casey Corporation. Budgeted sales for January $205,000 and February $104,000. Collections for sales are 40% in the month of sale and 60% the next month. Gross margin is 25% of sales. Administrative costs are $14,000 each month. Beginning accounts receivable is $29,000. Beginning inventory is $18,000. Beginning accounts payable is $68,000. (All from inventory purchases.) Purchases are paid in full the following month. Desired ending inventory is 30% of next...
The following information pertains to the January operating budget for Casey Corporation. ·Budgeted sales for January $100,000 and February $200,000 -Collections for sales are 60% in the month of sale and 40% the next month Gross margin is 30% of sales Administrative costs are $10,000 each month · Beginning accounts receivable is $20,000 -Beginning inventory is $14,000 -Beginning accounts payable is $60,000 (All from inventory purchases) Purchases are paid in full the following month Desired ending inventory is 20% of...
Brett's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the company's upcoming cash receipts and cash disbursements: (Click the icon to view the information.) Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments for purchases, and (c) budgeted cash payments for operating expenses. Show amounts for each month and totals for January and February. 2. Prepare a combined cash budget. If no financing...
Gary's Restaurant Supply is preparing its cash budgets for the first two months of the upcoming year. Here is the information about the company's upcoming cash receipts and cash disbursements: A (Click the icon to view the information.) Requirements 1. Prepare schedules of (a) budgeted cash collections, (b) budgeted cash payments for purchases, and (c) budgeted cash payments for operating expenses. Show totals for each month and totals for January and February combined. 2. Prepare a combined cash budget. If...
Problem 22-7AA Merchandising: Preparation and analysis of cash
budgets with supporting inventory and purchases budgets LO P4
Aztec Company sells its product for $160 per unit. Its actual
and budgeted sales follow.
Units
Dollars
April (actual)
4,000
$
640,000
May (actual)
2,800
448,000
June (budgeted)
4,500
720,000
July (budgeted)
3,500
719,000
August (budgeted)
4,100
656,000
All sales are on credit. Recent experience shows that 26% of credit
sales is collected in the month of the sale, 44% in the month...
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