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Assignment #1 - Cash Budget The Flaming Wok Restaurant expects revenues and payments for the first five months of the year to be: Sales Payments

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Assignment #1 - Cash Budget The Flaming Wok Restaurant expects revenues and payments for the first five months of the year to be: Sales Payments January February March April May $14,000 20,000 26,000 22,000 18,000 $18,000 21,300 19,100 22,400 14,700 Seventy percent of the company's sales are on credit. Past experience shows that 40 percent of accounts receivable are collected in the month after sale, and the remainder are collected in the second month after sale. The Flaming Wok pays its payments in the following month. The cash balance on March 1" was $2,000, which is also its minimum required cash balance. There is an outstanding loan of $2,000 on March 1. Required: 1. Prepare a schedule of cash receipts for March, April and May. 2. Prepare a cash budget for March, April and May. #1) (12 Marks) You have decided to get rid of the clutter in your life and downsize the amount of property you own. During the year, you disposed of the following items: Property Sold Personal Vehicle Antique Clock Equipment (Class 8) (Note #1) Small Business Shares (Note #2) Publicly Traded Shares (Note #3) POD $1,400 $2,000 $4,800 $22,400 $43,100 Cost $3,200 $1,400 $8,500 $39,900 $17,600 Selling Fee $0 $0 so $0 $50 UCC n/al n/a $25,000 n/a n/a Note #1: You operate a small Sole Proprietorship. There are still other assets left in the class after the disposal. Note #2: These shares are considered Qualified Small Business Shares. Note #3: These are shares of a company listed on the Toronto Stock Exchange. Note #4: $2,900 LPP Loss Pool available (before application of 50% Rate) for 2017. Taxpayer wishes to use this if they can REQUIRED: Determine the tax impact of each disposal, compute CCA, and summarize the results. What is the LPP Loss Pool Balance at the end of 2017? (show all calculations)

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