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Can anyone help me with 2 accounting problems, I'm just at a lost here.....I have attached the two problems your help will be greatly appreciated.
Can anyone help me with 2 accounting problems, I'm just at a lost here.....I have attached the two problems
your help will be greatly appreciated.
Karim Corp. requires a minimum $8,600 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly). Any excess cash is used to repay loans at month-end. The cash balance on July 1 is $9,000 and the company has no outstanding loans. Forecasted cash receipts (other than for loans received) and forecasted cash payments (other than for loan or interest payments) follow: July $24,600 28,900 Cash receipts Cash disbursements August $32,600 30,600 September $ 40,600 32,600 Prepare a cash budget for July, August, and September. (Rounding your final answers to the nearest whole dollar. Negative balance and Loan repayment amount should be indicated with minus sign.) KARIM CORP CASH BUDGET FOR JULY, AUGUST and SEPTEMBER JULY AUGUST BEGINNING CASH BALANCE TOTAL CASH AVAILABLE PRELIMINARY CASH BALANCE ENDING CASH BALANCE LOAN BALANCE LOAN BALANCE - BEGINNING MONTH ADDITIONAL LOAN(LOAN REPAYMENT) LOAN BALANCE - END OF MONTH $ SEPTEMBER Walker Company prepares monthly budgets. The current budget plans for a September ending inventory of 31,500 units. Company policy is to end each month with merchandise inventory equal to a specified percent of budgeted sales for the following month. Budgeted sales and merchandise purchases for the next three months follow. July August September Sales (Units) 170,000 320,000 300,000 Purchases (Units) 192,500 317,000 286,500 (1) Prepare the Merchandise Purchases Budget for the Month of July, August, and September WALKER COMPANY MERCHANDISE PURCHASES BUDGET FOR JULY, AUGUST and SEPTEMBER JULY AUGUST BUDGETED ENDING INVENTORY UNITS SEPTEMBER 31,500 REQUIRED UNITS OF AVAILABLE INVENTORY UNITS TO BE PURCHASED 192,500 317,000 286,500 (2) Compute the Ratio of ending inventory to the next month's sales. JULY AUGUST BUDGETED ENDING INVENTORY UNITS NEXT MONTH'S BUDGETED SALES RATIO OF INVENTORY TO NEXT MONTH'S SALES (3) How many units are budgeted for sale in October? UNITS BUDGETED FOR SALE IN OCTOBER SEPTEMBERStep by Step Solution
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