Question
ACME Corporation produces bowling balls in a variety of designer colours. 2022 Master budget data is as follows: Quarter 1 (Jan - Mar) 2 (Apr
ACME Corporation produces bowling balls in a variety of designer colours. 2022 Master budget data is as follows:
| Quarter | 1 (Jan - Mar) | 2 (Apr - Jun) | 3 (Jul - Sep) | 4 (Oct - Dec) |
| Sales (all on account) | $1,000,000 | $1,750,000 | $1,150,000 | $1,650,000 |
| Raw material purchases | $200,000 | $300,000 | $220,000 | $300,000 |
| Direct labour wages | $225,000 | $337,500 | $247,500 | $337,500 |
| Manufacturing overheard (includes $75,000 depreciation per quarter) | $250,000 | $375,000 | $275,000 | $475,000 |
| SG&A expenses (includes $25,000 depreciation per quarter) | $276,250 | $291,250 | $279,250 | $341,250 |
| Loan payments | $275,000 | $275,000 | $275,000 | $275,000 |
| Capital purchases | $100,000 | $110,000 | $95,000 | $102,000 |
Additional information: 1. 75% of sales are collected in the current quarter, 25% in the following quarter. 2. Current quarter purchases are paid in the following quarter. 3. Direct labour, manufacturing overhead and SG&A expenses are paid the quarter incurred. 4. Capital purchases are made by bank loans. 5. Sales for the quarter ended December, 31, 2021 were $1,250,000. 6. The accounts payable balance at the end of 2021 was $175,000.
Required: Use the table below to answer the following questions for the Third (3rd) quarter of 2022 (5.5 Marks):
ACME Corporation
Cash Budget (Partial)
For the Year Ending December 31, 2022
Q1 | Q2 | Q3 | Q4 | |
a) Total Cash Receipts | ||||
b) Total Cash Disbursements | ||||
c) Ending Balance in Accounts Payable | ||||
d) Ending Balance in Accounts Receivable | ||||
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
