1. Adrian's Restaurant is a 48-seat reestaurant open every day for lunch and dinner. For the month of May, it plans to turn over the restaurant 1.5 times at lunch and 2.5 times at dinner. Each server can handle 16 guests at a time. Lunch shifts are typically 4 hours and dinner shifts are typically 5 hours. Servers earn $16 per hour. Calculate the cost of server labour for lunch, dinner and in total for the month of May.

Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Lunch Labour Cost = $Answer Dinner Labour Cost = $Answer Total Labour Cost = $Answer

2. Super K Hotels expects $850,000 of total sales in February and $730,000 of total sales in March. Historically, the company collects 86% of its total sales in the month of sale and 14% in the following month.

Determine the amount of cash that the company expects to collect in the month of March. Do not enter dollar signs or commas in the input boxes.

Super K Hotels Cash Collections Budget For the Month Ending March 31, 2020
Collection of February Sales	$Answer
Collection of March Sales	$Answer
Total cash to be collected	$Answer

3. The following is Alpha Hotel's income statement for the year ended February 28, 2020.

Alpha Hotel Income Statement For the Year Ended February 28, 2020
Revenues		$840,000
Expenses:
Administrative Costs	$27,000
Marketing	$13,000
Variable Wages	$237,000
Management Salaries	$99,000
Rent	$194,000
Utilities	$25,000
Total Expenses		$595,000
Net Income		$245,000

Alpha Hotel is a limited-service hotel with 18 rooms and no food and beverage operations. Management does not intend to spend a lot of time and money on budgeting. The manager has determined the 2021 budgeted income statement should simply reflect the following predicted changes from the 2020 income statement:

• Revenues will increase by 3.5%
• Marketing costs will decrease by 6%
• Management salaries will increase by 3%
• Variable wages will remain consistent as a percentage of revenue
• Utilities will increase by 6%
• Administrative costs and rent will remain the same

Do not enter dollar signs or commas in the input boxes. Prepare the budgeted income statement for the year ending February 28, 2021 using the incremental budgeting approach.

Alpha Hotel Budgeted Income Statement For the Year Ended February 28, 2021
Revenue		$Answer
Expenses
Administrative Costs	$Answer
Marketing	$Answer
Variable Wages	$Answer
Management Salaries	$Answer
Rent	$Answer
Utilities	$Answer
Total Expenses		$Answer
Net Income		$Answer

4. Super K Hotels expects $850,000 of total sales in February and $730,000 of total sales in March. Historically, the company collects 86% of its total sales in the month of sale and 14% in the following month.

Determine the amount of cash that the company expects to collect in the month of March. Do not enter dollar signs or commas in the input boxes.

Super K Hotels Cash Collections Budget For the Month Ending March 31, 2020
Collection of February Sales	$Answer
Collection of March Sales	$Answer
Total cash to be collected	$Answer

5. Lee Verly will be opening his company called LV Catering in January of the next year. He predicts that January, February and March will generate $155,000, $100,000 and $195,000 worth of sales respectively. The company expects to sell 45% of its products for cash. Of the sales on account, 55% are expected to be collected in the month of the sale, 30% in the month following the sale and the remainder in the following month. Prepare the cash receipts section of the cash budget.

Do not enter dollar signs or commas in the input boxes.

Round your answers to the nearest whole number.

LV Catering Cash Receipts For January, February and March
	January	February	March
Cash sales	$Answer	$Answer	$Answer
Collections from credit customers	$Answer	$Answer	$Answer
Total Cash Receipts	$Answer	$Answer	$Answer

6. Jekell Catering Inc. is a caterer of corporate lunches and events. The following is Jekell's sales forecast by quarter for the upcoming year.

Jekell Catering Inc. Forecasted Sales For the Year Ended December 31, 2020
	Q1	Q2	Q3	Q4	Total
Sales	$111,000	$290,000	$358,000	$251,000	$1,010,000

In addition, sales in Q3 and Q4 of 2019 totaled $132,000 and $212,000 respectively. According to the company's sales records, all revenue is invoiced (i.e. credit sales). Assume the following historical trends were noted by management regarding credit sales:

• 52% of credit customers pay during the quarter in which the sale took place
• 28% of credit customers pay in the quarter immediately following the quarter of sale
• 20% of credit customers pay in the second quarter following the quarter of sale

Do not enter dollar signs or commas in the input boxes. Prepare a schedule of cash receipts on a quarterly basis.

Jekell Catering Inc. Cash Receipts For the Year Ended December 31, 2020
	Q1	Q2	Q3	Q4	Total
Q3 2019	$Answer				$Answer
Q4 2019	$Answer	$Answer			$Answer
Q1 2020	$Answer	$Answer	$Answer		$Answer
Q2 2020		$Answer	$Answer	$Answer	$Answer
Q3 2020			$Answer	$Answer	$Answer
Q4 2020				$Answer	$Answer
Total Cash Receipts	$Answer	$Answer	$Answer	$Answer	$Answer

7. Tyler Sheen is the owner of Sheen's Inn. He provided the selected opening balances as at June 1, 2020 and the budgeted information for June and July 2020.

Selected Opening Balances as of June 1, 2020
Cash	$49,500
Accounts Receivable	100,000
Inventory	340,000
Long-term Assets	758,000
Accounts Payable	59,300
Shareholder's Equity	827,000

Budgeted Amounts
For the month of June:
Total Revenue	$313,000
Total General and Administration Costs	199,000
Total Capital Expenditures	156,000
For the month of July:
Total Revenue	356,900
Total General and Administration Costs	223,000
Total Capital Expenditures	250,000

Do not enter dollar signs or commas in the input boxes. Round your answer to the nearest dollar The company's monthly depreciation represents 20% of general and administration costs. 70% percent of the general and administration costs (excluding depreciation) are paid in the month in which they are incurred, and the rest is recorded in accounts payable to be paid in the next month. Of the $156,000 capital expenditures for June, $98,000 will be paid in July. The remaining amount will be paid in the month in which they are incurred. a) Calculate the total cash disbursement for the month of June. General Administration costs from May $Answer

General Administration costs from June $Answer

Capital Expenditure $Answer

Total cash disbursement for June $Answer

b) Calculate the total cash disbursement for the month of July. General Administration costs From June $Answer

General Administration costs From July $Answer

Capital Expenditure from June $Answer

Capital Expenditure from July $Answer

Total cash disbursement for July $Answer