Forgot to put question on last one. Need help with 2 question.
Problem 8-16 Schedules of Expected Cash Collections and Disbursements [LO2, LO4, LO8] Calgon Products, a distributor of organic beverages, needs a cash budget for September. The following information is available: a. The cash balance at the beginning of September is $11,500. b. Actual sales for July and August and expected sales for September are as follows: July Cash sales Sales on account Total sales August $ 5,100 September $ 4,800 $ 9,200 20,000 28,000 42,000 $ 25,100 $ 32,800 $ 51,200 Sales on account are collected over a three-month period as follows: 5% collected in the month of sale, 60% collected in the month following sale, and 31% collected in the second month following sale. The remaining 4% is uncollectible. c. Purchases of inventory will total $30,000 for September. Thirty percent of a month's inventory purchases are paid for during the month of purchase. The accounts payable remaining from August's inventory purchases total $17,000, all of which will be paid in September. d. Selling and administrative expenses are budgeted at $15,000 for September. Of this amount, $3,000 is for depreciation. e. Equipment costing $18,000 will be purchased for cash during September, and dividends totaling $3,000 will be paid during the month. f. The company maintains a minimum cash balance of $7,500. An open line of credit is available from the company's bank to bolster the cash balance as needed. Required: 1. Prepare a schedule of expected cash collections for September. (Do not round intermediate calculations. Omit the "$" sign in your response.) Schedule of Expected Cash Collections September cash sales September collections on account: July sales August sales September sales Total cash collections $ $ 2. Prepare a schedule of expected cash disbursements for inventory purchases for September. (Do not round intermediate calculations. Omit the "$" sign in your response.) Schedule of Expected Cash Disbursements Payments to suppliers: August purchases $ September purchases Total cash payments $ 3. Prepare a cash budget for September. Indicate in the financing section any borrowing that will be needed during September. Assume that any interest will not be paid until the following month. (Input all amounts as positive values except cash deficiency, repayments and interest which should be indicated by a minus sign. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) Calgon Products Cash Budget For the Month of September Cash balance, beginning Add cash receipts: Collections from customers $ Total cash available before current financing Less disbursements: Payments to suppliers for inventory Selling and administrative expenses Equipment purchases Dividends paid $ Total disbursements Excess (deficiency) of cash available over disbursements Financing: Borrowings Repayments Interest Total financing Cash balance, ending $ Exercise 9-18 Flexible Budget Performance Report [LO1, LO4] AirAssurance Corporation provides on-site air quality testing services. The company has provided the following data concerning its operations: Fixed Variable Component Component per Month per Job Revenue Technician Actual Total for March $277 $ 8,400 $ $ 27,720 8,250 wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneo us expenses $ 4,800 $26 $ 7,820 $ 2,400 $4 $ 2,690 $ 1,580 $ 1,650 $ 2,870 $ 2,870 $ 950 $ 475 $2 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $26 per job, and the actual mobile lab operating expenses for March were $7,820. The company expected to work 110 jobs in March, but actually worked 108 jobs. Required: Complete the flexible budget performance report showing AirAssurance Corporation's activity variances and revenue and spending variances for March. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Activity Variances Revenue AirAssurance Corporation Flexible Budget Performance Report For the Month Ended March 31 Revenue and Spending Variances $ $ Expenses: Technician wages Mobile lab operating expenses Office expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income $ $
