Current Attempt in Progress Sheffield Company prepares monthly cash budgets. Relevant data from operating budgets for...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Current Attempt in Progress Sheffield Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $468,000 $520,000 Direct materials purchases 156,000 162,500 Direct labor 117,000 130,000 Manufacturing overhead 91.000 97.500 Selling and administrative expenses 102,700 110,500 All sales are on account. Collections are expected to be 50% in the month of sale. 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1.300 of depreciation per month, Other data: 1 Credit sales: November 2021, $325,000, December 2021, $416,000. 2 Purchases of direct materials: December 2021, $130,000 3. Other receipts: January-Collection of December 31, 2021. notes receivable $19.500 February-Proceeds from sale of securities $7,800. 4. Other disbursements: February-Payment of $7,800 cash dividend. SUP The company's cash balance on January 1, 2022, is expected to be $78,000. The company wants to maintain a minimum cash balance of $65,000. (a) Your answer is correct. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. SHEFFIELD COMPANY Schedule of Expected Collections from Customers For the Two Months Ending February 28, 2022 January February November $ 65000 $ December 124800 83200 January 234000 140400 February 0 260000 SUB Total collections $ 423800 $ 483600 December January February SHEFFIELDCOMPANY Schedule of Expected Payments for Direct Materials For the Two Months Ending February 28, 2022 January Total payments eTextbook and Media February 52000 $ 93600 62400 0 97500 145600 159900 A Prepare a cash budget for January and February in columnar form. SHEFFIELD COMPANY Cash Budget January Febri SU $ nework 4 Ques Total Available Cash Direct Labor Total Disbursements Disbursements Beginning Cash Balance Selling and Administrative Expenses Direct Materials Financing Receipts Excess (Deficiency) of Available Cash Over Cash Disbursements Collections from Customers Repayments Cash Dividend Ending Cash Balance Manufacturing Overhead Total Receipts Borrowings Sale of Securities Notes Receivable eTextbook and Media. 2.5/5 Current Attempt in Progress Sheffield Company prepares monthly cash budgets. Relevant data from operating budgets for 2022 are as follows. January February Sales $468,000 $520,000 Direct materials purchases 156,000 162,500 Direct labor 117,000 130,000 Manufacturing overhead 91.000 97.500 Selling and administrative expenses 102,700 110,500 All sales are on account. Collections are expected to be 50% in the month of sale. 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1.300 of depreciation per month, Other data: 1 Credit sales: November 2021, $325,000, December 2021, $416,000. 2 Purchases of direct materials: December 2021, $130,000 3. Other receipts: January-Collection of December 31, 2021. notes receivable $19.500 February-Proceeds from sale of securities $7,800. 4. Other disbursements: February-Payment of $7,800 cash dividend. SUP The company's cash balance on January 1, 2022, is expected to be $78,000. The company wants to maintain a minimum cash balance of $65,000. (a) Your answer is correct. Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February. SHEFFIELD COMPANY Schedule of Expected Collections from Customers For the Two Months Ending February 28, 2022 January February November $ 65000 $ December 124800 83200 January 234000 140400 February 0 260000 SUB Total collections $ 423800 $ 483600 December January February SHEFFIELDCOMPANY Schedule of Expected Payments for Direct Materials For the Two Months Ending February 28, 2022 January Total payments eTextbook and Media February 52000 $ 93600 62400 0 97500 145600 159900 A Prepare a cash budget for January and February in columnar form. SHEFFIELD COMPANY Cash Budget January Febri SU $ nework 4 Ques Total Available Cash Direct Labor Total Disbursements Disbursements Beginning Cash Balance Selling and Administrative Expenses Direct Materials Financing Receipts Excess (Deficiency) of Available Cash Over Cash Disbursements Collections from Customers Repayments Cash Dividend Ending Cash Balance Manufacturing Overhead Total Receipts Borrowings Sale of Securities Notes Receivable eTextbook and Media. 2.5/5
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Assume a memory hierarchy with two levels of cache, L1 and L2. a. What is the miss rate (MR1) for L1 if there are 75 misses per 1000 memory references? b. What is the miss rate (MR2) for L2 if there...
-
JAD requires strong interpersonal and communication skills on the part of the systems analyst. Are those skills different from the ones that an analyst needs when conducting one-to-one interviews?...
-
1. Based on this information, do you believe Publishers Clearing House has committed fraud? 2. Why or why not? A recent newspaper contained the following story: Publishers Clearing House agreed to...
-
Describe a conflict that may arise between the shareholders of a company and the managers of the company. Discuss what the shareholders might do to overcome that conflict and explain why you feel...
-
David Barnes and his fiancee Valerie Shah are visiting Hawaii. There are 20 guests registered for orientation. It is announced that 12 randomly selected registered guests will receive a free lesson...
-
The following statement is for Question 1, 2 and 3: We will derive a two-state put option value in this problem. We have the following information: So 100; X=110; 1+rf=1.10. The two possibilities for...
-
At a previous employee, I worked at a beef packing plant on the tannery side overseeing the production of boot and shoe leather. We had several regulators that would make appearances at the plant and...
-
What statutory and mandatory professional pronouncements require a review to be published?
-
Find someone who has been involved in the project selection process within an organization. Prepare several interview questions, and then ask him or her the questions in person, via the phone, or via...
-
What is (a) a debit balance, (b) a credit balance?
-
What type of information will normally be included in the last few pages of an annual report?
-
What has caused so many accounting irregularities in recent years?
-
Which trial balance lists all the business accounts before year-end adjusting journal entries are made. is a - adjusted trial balance b- unadjusted trial balance c-post closing trial balance d-pre...
-
For the following exercises, rewrite the sum as a product of two functions or the product as a sum of two functions. Give your answer in terms of sines and cosines. Then evaluate the final answer...
-
Tracy Company reports the following amounts in its annual financial statements: a. Compute Tracy's free cash flow. b. Compute Tracy's operating-cash-flow-to-current-liabilities ratio. c. Compute...
-
Review each of the following items, a through \(f\), and determine whether the item supports a (1) production view of quality or a (2) customer view of quality. a. Applying management-by-exception...
-
During the year, Paton Corporation's Long-Term Investments account (at cost) increased \(\$ 20,000\), the net result of purchasing stocks costing \(\$ 85,000\) and selling stocks costing \(\$...
Study smarter with the SolutionInn App