The following information is provided to assist in the preparation of the Cash Budget for TSA...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following information is provided to assist in the preparation of the Cash Budget for TSA Ltd. for June, 2012: • The cash balance at 1¹ June, 2012 is $30,000 • All sales are on credit March April May June . Actual/Budgeted Sales $ • 140,000 120,000 130,000 155,000 Budgeted Purchases $ Cash collections from credit customers are: 70% in the month following the sale 20% in the second month following the sale 10% in the third month following the sale • All purchases are made on credit and payments are made as follows: 60% of purchases are paid for in the month of purchase 40% of purchases are paid for in the month following the purchase. 72,000 64,000 68,000 82,000 • Selling and administrative expenses each month are $24,000 plus 15% of sales for that month. This includes $6,000 per month for depreciation. • Equipment costing $35,000 is expected to be bought in May and paid for in June Required: (i) Prepare a schedule of cash collections for the month of June, 2012. (ii) Prepare a cash budget for the month of June, 2012. The following information is provided to assist in the preparation of the Cash Budget for TSA Ltd. for June, 2012: • The cash balance at 1¹ June, 2012 is $30,000 • All sales are on credit March April May June . Actual/Budgeted Sales $ • 140,000 120,000 130,000 155,000 Budgeted Purchases $ Cash collections from credit customers are: 70% in the month following the sale 20% in the second month following the sale 10% in the third month following the sale • All purchases are made on credit and payments are made as follows: 60% of purchases are paid for in the month of purchase 40% of purchases are paid for in the month following the purchase. 72,000 64,000 68,000 82,000 • Selling and administrative expenses each month are $24,000 plus 15% of sales for that month. This includes $6,000 per month for depreciation. • Equipment costing $35,000 is expected to be bought in May and paid for in June Required: (i) Prepare a schedule of cash collections for the month of June, 2012. (ii) Prepare a cash budget for the month of June, 2012.
Expert Answer:
Answer rating: 100% (QA)
1 Schedule of Cash Collections for June 2012 To determine the cash collections for June 2012 we need ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
As a new employee of Clayton Asset Management, you are assigned to evaluate the credit quality of BRT Corp. bonds. Clayton holds the bonds in its high-yield bond portfolio. The following information...
-
You were recently hired as an assistant controller at Just Tables (JT). JT sells one product, dining room tables made out of red cedar. You have been charged with preparing a cash budget for the...
-
Manny Fold owns a factory that specializes in making titanium valves for high-performance engines on a just in time basis. Thus, Manny produces what he sells in a particular month. There are no...
-
The acquisition committee of KE plc is considering making takeover bids for two competitors, Scot plc, a listed company, and Ring Ltd. Summarised financial data is given below for these companies....
-
Burklin, Inc., has earnings of $21 million and is projected to grow at a constant rate of 5 percent forever because of the benefits gained from the learning curve. Currently, all earnings are paid...
-
Minsoo Ltd. is a retailer operating in Edmonton, Alberta. Minsoo uses the perpetual inventory method. All sales returns from customers result in the goods being returned to inventory; the inventory...
-
Which graphs, if any, are not trees because they contain a cycle? Refer to the figure shown. q U e 9 e e g h
-
Methanol is synthesized from carbon monoxide and hydrogen in a catalytic reactor. The fresh feed to the process contains 32.0 mole% CO. 64.0% H2 and 4.0% N2. This stream is mixed with a recycle...
-
I need an understanding of this questions, any idea? Q1: Describe how the value of any asset is determined. Q2: A bond that pays interest forever and has no maturity date is a perpetual bond. How is...
-
Rachel Cook is very concerned. Until recently, she has always had the golden touch, having successfully launched two start- up companies that made her a very wealthy woman. However, the timing could...
-
Hilfmir Corporation filed for Chapter 11 bankruptcy on January 1, 2014. A summary of their financial status is shown below on June 30, 2014, at the date of the approved reorganization, along with the...
-
Welcome to our discussion on Apple's 2021 financial performance. Financial performance is crucial for understanding a company's market success. In this DB, let's explore how companies assess their...
-
Family A's income is more than twice that of Family B, yet Family B has more equity . How do you account for the difference?
-
(b) Reciprocals in F4 Find all F4 such that a x = 1: [This is the reciprical a -1 = 1 a x= of a in F4] Incorrect. (c) Square Roots in F4 Find all such that 2 = a: x= [This is the square root a of a...
-
A company has common stock that can be sold for $54.92 per share. the stock paid a dividend at the end of last year of $3.13. Dividends are expected to grow at an annual rate of 11% indefinitely....
-
To facilitate the investment decision-making process of the Green and Sustainable Fund manager, determine if stock-inclusion should take place by preparing an investment proposal. The investment...
-
35 35 Which two are accounting functions rather than finance functions? Choose 2 answers Selecting company investments Arranging det f detit financing Recording financial transactions Managing...
-
Show that every group G with identity e and such that x * x = e for all x G is abelian.
-
The budgeted unit sales of Haerve Company for the upcoming fiscal year are provided below: The companys variable selling and administrative expenses per unit are $2.75. Fixed selling and...
-
The Central Area Well-Baby Clinic provides a variety of health services to newborn babies and their parents. The clinic is organized into a number of departments, one of which is the Immunization...
-
Fred Austin is employed by White Company where he assembles a component part for one of the companys products. Fred is paid $12 per hour for regular time, and he is paid time and a half (i.e., $18...
-
Product mix under constraint (Learning Objective 5) Easy Living of Charlotte, North Carolina, specializes in outdoor furniture and spas. Owner Linda Spring is expanding the store. She is deciding...
-
Outsourcing: alternative use of capacity (Learning Objective 6) Morning Grain makes organic cereal. Costs of producing 140,000 boxes of cereal each year follow: Suppose Kelloggs will sell Morning...
-
Sell or process further decision (Learning Objective 7) Acme Petroleum has spent $200,000 to refine 60,000 gallons of petroleum distillate. Suppose Acme Petroleum can sell the distillate for $6 a...
Study smarter with the SolutionInn App