AutoSave OFF ASE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer || 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po 21 AaBbCcDdEe AaBbceDdee AaBbCD AalbCcDde AaBb Aalb edde AaBbce de LE Paste BI U ab x ADA Normal x No Spacing Heading 1 Title Heading 2 Subtitle Subtle Emph... Styles Pane Sensitivity 3 6. Sub NAME: ABC CORP BALANCE SHEET December 31, 2010 Cash $ 100 Marketable Securities 0 Accounts Receivables 2,000 Inventory 140 Fixed Assets (net 2,000 Total Assets Accounts Payable $ 2,380 Notes Payable 0 Retained earnings ? Common Stock 1.400 Total of Both Liabilities & Equity & For the year ended 12/31/10 ABC CORP generated Sales of $12,000 and Net Income of $120. The net profit margin this year is considered normal by ABC CORP. Cost of Goods Sold was $8,400 in 2010. Cost of Goods Sold consistently averages seventy per cent of Sales, and will continue to do so in the future. Depreciation Expense was $500 in 2010. No Depreciation Expense was, or ever will be included in Cost Page 1 of 5 774 words LE English (United States) 1 Focus E + 88% AutoSave OFF A SUE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer II 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po AL AaBbCcDdEe AaBbce de LE AaBbCcDdEe AaBbCcD AaBbCD AaBbCcDde AaBb AaBbceDdEt No Spacing Heading 1 Heading 2 Title Subtitle Paste BI U ab x x ADA Normal Subtle Emph... Styles Pane Sensitivity 1 2 3 6 of Goods Sold. Fixed Operating costs, excluding Depreciation Expense, were equal to $1,200 for 2010 These Fixed Operating Costs included all utilities, all insurance, all rent, all property taxes, and all labor charges. Fixed Operating costs (other than depreciation expense) are paid for immediately, as they are incurred. Fixed Operating costs were spread evenly throughout the year 2010. With regard to the size and timing of these costs, it is anticipated that the experience of 2010 will be repeated in 2011. Therefore, we anticipate cash payments associated with Fixed Operating costs to equal $100 per month in 2011. Because of losses in recent years at ABC Corp and the loss carry forward provisions of the tax code there were no income taxes paid in 2010, and it is anticipated in 2011 that no income tax payments will be made Interest paid in 2010 was $40 and dividends paid in that same year were 560 Interest payments are made monthly and dividends are paid at the end of every quarter. The next dividend payment is scheduled for March 2011. The dividend payout ratio in 2010 is considered normal for ABC CORP. The annual interest rate for bank borrowing is six percent per year (one-half of one per cent per month). Interest paid in the current month is based on the previous month's balance in Notes Payable. The target cash balance for the end of any current month is equal to ten percent of next month's sales. Target ending inventory at the end of any current month is equal to twenty percent of estimated cost of goods sold for the next month. All purchases of inventory are paid for in the month following purchase. The entire balance of Accounts Payable, at any given point in time, represents the purchase of inventory which has not yet been paid for. One-half of all sales are collected in the month of sale, the remainder in the following Month. The sales forecast for the first four months of 2011 is January $1,000 February 800 March 3,200 April 2,000 Sales for October, November and December of the year 2010 were $2,000 $2,000 and $4,000, $, respectively Page 2 of 5 774 words English (United States) Focus E + 88% AutoSave OFF ASE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer II 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po Evvel AaBbCcDdEe AaBbceDdte AaBbCD AaBbCcDde AaBb AaBbceDdEt AaBbce de LE Paste BI U ab x ADA Normal Heading 1 No Spacing x Title Heading 2 Subtitle Subtle Emph... Styles Pane Sensitivity 1 2 3 6. It is the policy of the company to repay bank borrowing as soon as possible; if money is not needed for this purpose, then investments of marketable securities are made. Marketable Securities should be liquidated to satisfy any subsequent need for cash flow before any new bank borrowing is done. The annual yield on marketable securities is three per cent (one-quarter of one percent per month. Interest payments to the firm are based on the previous month's balance in Marketable Securities. On the next two pages, you will find a partially completed Cash Budget. Some numbers are filled in for your convenience. For only the month of January 2011, you are to fill in missing amounts in this cash Budget. When you answer to this requirement remember to write zero if you mean zero because a blank will not be interpreted as zero. Page 3 of 5 774 words English (United States) IT Focus E + 88% AutoSave OFF ASE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer II 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po 21 AaBbCcDdEe AaBbce de LE AaBbCcDdEe AaBbCcD AaBbCD AaBbCcDde AaBb AaBbceDdEt No Spacing Heading 1 Heading 2 Title Subtitle Paste BI U ab x x ADA Normal Subtle Emph... Styles Pane Sensitivity 1 2 3 6 The Cash Budget Nov TO Dec 10 Jan 11 Sales $2.000 $4.000 $1.000 Cost of goods sold 1.200 20 Beginning Inventory 280 560 Encing leventory 560 140 Purchases 1.680 2350 Cash Collecties: X X x X Collected is mooth of sale Collected month after sale x Cher Inow: X X Interest Income Payments X X 0 TOTAL INILOWS X X Outilows X X X Payment for purchases X X x D Interest Payments Overhead Payments X TOU Fred Asset Ader X X 0 Dvidend payments Income Tax Payments X X 0 TOTAL OUTFLOWS X X Irlow. Outllow X X Beginning Cash Desited Ending Cash X TO Cash Produced Over or Under - Immediate Need X Page 4 of 5 774 words English (United States) IT Focus E + 88% AutoSave OFF A SUE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer || 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po AL AaBbCcDdEe AaBbceDdee AaBbCD AalbCcDde AaBb Aalb edde AaBbce de LE Paste BI U ab x ADA Normal x No Spacing Heading 1 Title Heading 2 Subtitle Subtle Emph... Styles Pane Sensitivity 2 3 6 7 Required X X Loen Repair X X Loan Balance X 0 Secunties Purchased X X Securities X Segundies the O Page 5 of 5 774 words English (United States) IT Focus E + 88% AutoSave OFF ASE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer || 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po 21 AaBbCcDdEe AaBbceDdee AaBbCD AalbCcDde AaBb Aalb edde AaBbce de LE Paste BI U ab x ADA Normal x No Spacing Heading 1 Title Heading 2 Subtitle Subtle Emph... Styles Pane Sensitivity 3 6. Sub NAME: ABC CORP BALANCE SHEET December 31, 2010 Cash $ 100 Marketable Securities 0 Accounts Receivables 2,000 Inventory 140 Fixed Assets (net 2,000 Total Assets Accounts Payable $ 2,380 Notes Payable 0 Retained earnings ? Common Stock 1.400 Total of Both Liabilities & Equity & For the year ended 12/31/10 ABC CORP generated Sales of $12,000 and Net Income of $120. The net profit margin this year is considered normal by ABC CORP. Cost of Goods Sold was $8,400 in 2010. Cost of Goods Sold consistently averages seventy per cent of Sales, and will continue to do so in the future. Depreciation Expense was $500 in 2010. No Depreciation Expense was, or ever will be included in Cost Page 1 of 5 774 words LE English (United States) 1 Focus E + 88% AutoSave OFF A SUE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer II 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po AL AaBbCcDdEe AaBbce de LE AaBbCcDdEe AaBbCcD AaBbCD AaBbCcDde AaBb AaBbceDdEt No Spacing Heading 1 Heading 2 Title Subtitle Paste BI U ab x x ADA Normal Subtle Emph... Styles Pane Sensitivity 1 2 3 6 of Goods Sold. Fixed Operating costs, excluding Depreciation Expense, were equal to $1,200 for 2010 These Fixed Operating Costs included all utilities, all insurance, all rent, all property taxes, and all labor charges. Fixed Operating costs (other than depreciation expense) are paid for immediately, as they are incurred. Fixed Operating costs were spread evenly throughout the year 2010. With regard to the size and timing of these costs, it is anticipated that the experience of 2010 will be repeated in 2011. Therefore, we anticipate cash payments associated with Fixed Operating costs to equal $100 per month in 2011. Because of losses in recent years at ABC Corp and the loss carry forward provisions of the tax code there were no income taxes paid in 2010, and it is anticipated in 2011 that no income tax payments will be made Interest paid in 2010 was $40 and dividends paid in that same year were 560 Interest payments are made monthly and dividends are paid at the end of every quarter. The next dividend payment is scheduled for March 2011. The dividend payout ratio in 2010 is considered normal for ABC CORP. The annual interest rate for bank borrowing is six percent per year (one-half of one per cent per month). Interest paid in the current month is based on the previous month's balance in Notes Payable. The target cash balance for the end of any current month is equal to ten percent of next month's sales. Target ending inventory at the end of any current month is equal to twenty percent of estimated cost of goods sold for the next month. All purchases of inventory are paid for in the month following purchase. The entire balance of Accounts Payable, at any given point in time, represents the purchase of inventory which has not yet been paid for. One-half of all sales are collected in the month of sale, the remainder in the following Month. The sales forecast for the first four months of 2011 is January $1,000 February 800 March 3,200 April 2,000 Sales for October, November and December of the year 2010 were $2,000 $2,000 and $4,000, $, respectively Page 2 of 5 774 words English (United States) Focus E + 88% AutoSave OFF ASE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer II 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po Evvel AaBbCcDdEe AaBbceDdte AaBbCD AaBbCcDde AaBb AaBbceDdEt AaBbce de LE Paste BI U ab x ADA Normal Heading 1 No Spacing x Title Heading 2 Subtitle Subtle Emph... Styles Pane Sensitivity 1 2 3 6. It is the policy of the company to repay bank borrowing as soon as possible; if money is not needed for this purpose, then investments of marketable securities are made. Marketable Securities should be liquidated to satisfy any subsequent need for cash flow before any new bank borrowing is done. The annual yield on marketable securities is three per cent (one-quarter of one percent per month. Interest payments to the firm are based on the previous month's balance in Marketable Securities. On the next two pages, you will find a partially completed Cash Budget. Some numbers are filled in for your convenience. For only the month of January 2011, you are to fill in missing amounts in this cash Budget. When you answer to this requirement remember to write zero if you mean zero because a blank will not be interpreted as zero. Page 3 of 5 774 words English (United States) IT Focus E + 88% AutoSave OFF ASE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer II 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po 21 AaBbCcDdEe AaBbce de LE AaBbCcDdEe AaBbCcD AaBbCD AaBbCcDde AaBb AaBbceDdEt No Spacing Heading 1 Heading 2 Title Subtitle Paste BI U ab x x ADA Normal Subtle Emph... Styles Pane Sensitivity 1 2 3 6 The Cash Budget Nov TO Dec 10 Jan 11 Sales $2.000 $4.000 $1.000 Cost of goods sold 1.200 20 Beginning Inventory 280 560 Encing leventory 560 140 Purchases 1.680 2350 Cash Collecties: X X x X Collected is mooth of sale Collected month after sale x Cher Inow: X X Interest Income Payments X X 0 TOTAL INILOWS X X Outilows X X X Payment for purchases X X x D Interest Payments Overhead Payments X TOU Fred Asset Ader X X 0 Dvidend payments Income Tax Payments X X 0 TOTAL OUTFLOWS X X Irlow. Outllow X X Beginning Cash Desited Ending Cash X TO Cash Produced Over or Under - Immediate Need X Page 4 of 5 774 words English (United States) IT Focus E + 88% AutoSave OFF A SUE W CASH BUDGETING BONUS ASSIGNMENT (AMENDED) Summer || 2020 docx (1) (1) (1) - Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share Comments Calibri (Bod... 11 AA Aav po AL AaBbCcDdEe AaBbceDdee AaBbCD AalbCcDde AaBb Aalb edde AaBbce de LE Paste BI U ab x ADA Normal x No Spacing Heading 1 Title Heading 2 Subtitle Subtle Emph... Styles Pane Sensitivity 2 3 6 7 Required X X Loen Repair X X Loan Balance X 0 Secunties Purchased X X Securities X Segundies the O Page 5 of 5 774 words English (United States) IT Focus E + 88%