Garrsion Ch.8, Problem 31C :Under step 10- Cash budget:
How did you come to total borrowings of $1,180,000 when the borrowing was ($170k + $10k)? How does that give you an interest of $5,300?
Chapter 8 Problem 310 Done the country in the ile the way of being der speed Since you mwen coming second men heeft hem The company many hand an en meer purchase the other the All without pewn 15 days he comes The company 50.000 during de 7.000 Meble 60.000 The company many to borrow to increments of 1000 of The in my med interest on the permis ting 2. Aleged content for the period anding 0 Step 10 of 16 Done (2) Cash budget: Cash budget is a schedule prepared to determine the estimated cash receipts (cash inflow) and estimated cash payments (cash outflow). Prepare a cash budget. Particulars April Quarter fix Sp Beach balese $ 74,000 $ 50,000 $50,000 $ 74,000 Add Cakes from users $ 136,000 S 695.000 3 865,000 $ 1.996,000 Totalcek ilable $ 510,000 $765,000 S 915,000 $2,070,000 les wash debersements Lentory preses $ 258.000 $318.000 $ 241,000 $ 820.000 Adre $ 200,000 $200,000 $200,000 $ 600.000 Rent $ 18,000 S 18.000 $ 18,000 $ 54,000 Sales $ 106,000 $106.000 $ 106,000 $318,000 Com $ 26,000 $40.000 $ 20.000 $ 8600 UNES $ 7.000 $ 7000 $ 7,000 $ 21.000 Brement purchases $ $ 16,000 $ 40,000 $ 56.000 Dividend paid $ 15,000 $ 15.000 Total cask busana $ 630.000 $ 705,200 $ 35,000 $1,970.00 Fress of cash over det soments $(120,000) $40,000 $250,000 $100,000 hai Barwin $ 170,000 $10,000 $ $ 1.180.000 Repayment $ $(180.000 S (80,000) Interest $ S (5.300 S 65.300) Tatal fu $ 170,000 $ 10.000 $785 3.00 Ending and balance $ 50.000 $ 99.000 $ 24.700 $ Master Budget with Supporting Schedules You have been red as a waren trainee by Earrings Unlimited, a distributor of earrings to the country in the past the company has done very Wole in the way of doing and at certain times of the year has experienced a shortage of cash Since you we will wined in budgeting, you have decided to recomensive for the upcoming second quarter to show management the benefits that can be gained from an integrated budgeting program. To this end, you have worked with accounting and other areas to gather the formation assembled below The company is many styles of sings, but all are sold for the same price-510 per pair. Relvaates on earrings to the hearted For the low on pare The concentration of sales before and during Mayis due to Mother's Day, Bulletinstory should be on hand at the end of each month topply 40% of the Spelers e paid for a pair of carvings. One-hait a month's purchase is paid for in the month of purchase the heals palding month. Als on credit with me discount, and well within 15 days. The company has found however, that only one more colected in the months. An additional Yosed in the following month and the remaining 10% collected in the second monthlutowing sale. Bad debts have been gigible below Monthly operating expenses for the company are given Insurance is paid on an annual basis. In November of The company plans to purchase 516,000 in new ovomestoring Mayne 300.000 in new equipment during na bath purchase will be for cash. The company declares dividenes 15.00 each unter payable in the first month of the flowing quarter Ating of the company's ledger counts of March 31 is given below The company maintains a minimum cash balance of 150,000. All borrowing is one of the beginning of a morth any repayments are made at the end of a The company has agreement with a bank that allows the company to borrow in increment of $1,000 at the teginning of each month. The interest rate on these Dans les per month and to implicity we will stume that interest is not compounded the end Quarter, the company would pay the bank all of the Morated interest on the lead as much of the kompetencernant of 100, while retaining at least 150,00 inch Required Prepare a mester budget for the three-month period ending June 30include the winged 2. A cashbShow the budget by month and interne any borrowing that would be needed to maintain the minimum cash balance of 50,000 3. A budited income tatament for the three- mothered in the contribution approach 4. A budgeted balance sheets of June 30. Chapter 8 Problem 310 Done the country in the ile the way of being der speed Since you mwen coming second men heeft hem The company many hand an en meer purchase the other the All without pewn 15 days he comes The company 50.000 during de 7.000 Meble 60.000 The company many to borrow to increments of 1000 of The in my med interest on the permis ting 2. Aleged content for the period anding 0 Step 10 of 16 Done (2) Cash budget: Cash budget is a schedule prepared to determine the estimated cash receipts (cash inflow) and estimated cash payments (cash outflow). Prepare a cash budget. Particulars April Quarter fix Sp Beach balese $ 74,000 $ 50,000 $50,000 $ 74,000 Add Cakes from users $ 136,000 S 695.000 3 865,000 $ 1.996,000 Totalcek ilable $ 510,000 $765,000 S 915,000 $2,070,000 les wash debersements Lentory preses $ 258.000 $318.000 $ 241,000 $ 820.000 Adre $ 200,000 $200,000 $200,000 $ 600.000 Rent $ 18,000 S 18.000 $ 18,000 $ 54,000 Sales $ 106,000 $106.000 $ 106,000 $318,000 Com $ 26,000 $40.000 $ 20.000 $ 8600 UNES $ 7.000 $ 7000 $ 7,000 $ 21.000 Brement purchases $ $ 16,000 $ 40,000 $ 56.000 Dividend paid $ 15,000 $ 15.000 Total cask busana $ 630.000 $ 705,200 $ 35,000 $1,970.00 Fress of cash over det soments $(120,000) $40,000 $250,000 $100,000 hai Barwin $ 170,000 $10,000 $ $ 1.180.000 Repayment $ $(180.000 S (80,000) Interest $ S (5.300 S 65.300) Tatal fu $ 170,000 $ 10.000 $785 3.00 Ending and balance $ 50.000 $ 99.000 $ 24.700 $ Master Budget with Supporting Schedules You have been red as a waren trainee by Earrings Unlimited, a distributor of earrings to the country in the past the company has done very Wole in the way of doing and at certain times of the year has experienced a shortage of cash Since you we will wined in budgeting, you have decided to recomensive for the upcoming second quarter to show management the benefits that can be gained from an integrated budgeting program. To this end, you have worked with accounting and other areas to gather the formation assembled below The company is many styles of sings, but all are sold for the same price-510 per pair. Relvaates on earrings to the hearted For the low on pare The concentration of sales before and during Mayis due to Mother's Day, Bulletinstory should be on hand at the end of each month topply 40% of the Spelers e paid for a pair of carvings. One-hait a month's purchase is paid for in the month of purchase the heals palding month. Als on credit with me discount, and well within 15 days. The company has found however, that only one more colected in the months. An additional Yosed in the following month and the remaining 10% collected in the second monthlutowing sale. Bad debts have been gigible below Monthly operating expenses for the company are given Insurance is paid on an annual basis. In November of The company plans to purchase 516,000 in new ovomestoring Mayne 300.000 in new equipment during na bath purchase will be for cash. The company declares dividenes 15.00 each unter payable in the first month of the flowing quarter Ating of the company's ledger counts of March 31 is given below The company maintains a minimum cash balance of 150,000. All borrowing is one of the beginning of a morth any repayments are made at the end of a The company has agreement with a bank that allows the company to borrow in increment of $1,000 at the teginning of each month. The interest rate on these Dans les per month and to implicity we will stume that interest is not compounded the end Quarter, the company would pay the bank all of the Morated interest on the lead as much of the kompetencernant of 100, while retaining at least 150,00 inch Required Prepare a mester budget for the three-month period ending June 30include the winged 2. A cashbShow the budget by month and interne any borrowing that would be needed to maintain the minimum cash balance of 50,000 3. A budited income tatament for the three- mothered in the contribution approach 4. A budgeted balance sheets of June 30
