Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i need help with a.)purchase budget chart b.)cash payments budget chart c.) cash budget spread sheet Sheridan Products, a rapidly growing distributor of home gardening

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
i need help with
a.)purchase budget chart
b.)cash payments budget chart
c.) cash budget spread sheet
Sheridan Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm's marketing director, has completed the following sales forecast. Month January February March April May June Sales $908,500 $1,005,800 $908,500 $1,154,200 $1,259,400 $1,400,400 Month July August September October November December Sales $1,505,200 $1,505,200 $1,600,300 $1,608,300 $1,505,200 $1,703,700 Phillip Smith, an accountant in the Planning and Budgeting Department is responsible for preparing the cash flow projection. He has gathered the following Information . All sales are made on credit Sheridan's excellent record in accounts receivable collection is expected to continue with 60% of billings collected in the month after sale and the remaining 40% collected two months after the sale. . Cost of goods sold, Sheridan's largest expense, is estimated to equal 40% of sales dollars. Seventy percent of Inventory is purchased one month prior to see and 30% during the month of sale. For example, in April 30% of April cost of goods sold is purchased and 70% of May cost of goods sold is purchased . All purchases are made on account. Historically, 75% of accounts payable have been paid during the month of purchase, and the remaining 25% in the month following purchase. Hourly wages and fringe benefits, estimated at 30% of the current month's sales are paid in the month incurred. . General and administrative expenses are projected to be $1,565,000 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equal installments at the end of each quarter. Hourly wages and fringe benefits, estimated at 30% of the current month's sales, are paid in the month incurred. . General and administrative expenses are projected to be $1,565,000 for the year. A breakdown of the expenses follows. All expenditures are paid monthly throughout the year, with the exception of property taxes, which are paid in four equal installments at the end of each quarter. Salaries and fringe benefits Advertising Property taxes Insurance Utilities Depreciation $ 329,700 373,100 137,400 192,400 181,200 350,700 $1,565,000 Total Operating income for the first quarter of the coming year is projected to be $329,400. Sheridan is subject to a 40% tax rate. The company pays 100% of its estimated taxes in the month following the end of each quarter. Sheridan maintains a minimum cash balance of $50,000. If the cash balance is less than $50,000 at the end of the month, the company borrows against its 12% line of credit in order to maintain the balance. All borrowings are made at the beginning of the month, and all repayments are made at the end of the month (in increments of $1,000). Accrued interest is paid in full with each principal repayment. The projected cash balance on April 1 is $56,800, Prepare the cash receipts budget for the second quarter. (Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Cash Receipts Budget May June April Total Cash Receipts 402320 February sales 402320 March sales 545100 363400 908500 April sales 692520 461680 1154200 May sales 755640 755640 Totals 947420 1055920 1217320 3220660 1904160 Accounts Receivable balance at the end of second quarter of 2015 $ Prepare the purchases budget for the second quarter. (Round answers to decimal places... 5.275. Enter answers in necessary fields only. Leave other fields blank. Do not enter 0.) Purchases Budget June April Total Purchases April COGS May COGS June COGS July COGS Totals Prepare the cash payments budget for the second quarter. (Round answers to Do not enter O.) decimal places, e.g. 5,275. Enter answers in necessary fields only. Leave other fields blank. Cash Payments Budget April May March purchases April purchases May purchases June purchases Accounts Payable balance at the end of second quarter of 2015 S Prepare the cash budget for the second quarter. (Round answers to o decimal places, e.g. 5,275. Enter answers in necessary field enter 0.) Cash Budget April May June Quarter Beginning Cash balance 50000 50000 50000 50000 Collection from Sales 947420 1055920 1217320 3220660 Total cash available to spend Less: V disbursements Payments for inventory Wages Salaries Advertising Property taxes Insurance Utilities Income taxes Total cash disbursements

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles of Accounting

Authors: Needles, Powers, crosson

11th Edition

1439037744, 978-1133626985, 978-1439037744

More Books

Students also viewed these Accounting questions

Question

What are your current research studies?

Answered: 1 week ago

Question

=+d. Does it offer little phrases? If they work? Like this.

Answered: 1 week ago

Question

=+c. Does it use short, concise sentences?

Answered: 1 week ago