Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

INSTE COM Your answer is incorrect Adam S, managing director of Summer Breeze, a swimsuit manufacturing company, has requested you to prepare a cash budget

image text in transcribed
image text in transcribed
INSTE COM Your answer is incorrect Adam S, managing director of Summer Breeze", a swimsuit manufacturing company, has requested you to prepare a cash budget for the months of January and February 2020. To assist in this task, they have provided the following information: Cash balance at the end of December 2019 is 556,900; Each swimsuit is sold for $11 each and actual sale for November and December 2019 and projected sale for January and February 2020 are as follows: November December January February Cash Sales (Quantity 5,300 units 6,600 units 6,300 units 4,300 units Credit Sales (Quantity 6,300 units 8,300 units 3,300 units 5,500 units Total Sales 11,600 units 14,700 units 14,600 units 9,800 units . 10 Analysis of past records as shown that credit sales are collected over a three-month period. With 60% being collected in the month of the sale, 30% in the next month (second month), and the remainder in the following month (third month) . Projected expenditure during January and February 2020 is as follows DA new piece of equipment conting $78,568 was purchased in December 2019. Upon purchase, the agreed credit terms were 40% on purchased in December 2019), 401 in January 2020 and the remainder in February 2020: Manufacturing costs (paid for immediately upon production) are budgeted at 37 per swimsuit Assume that all the swimsuits sold are manufactured in the same month Selling and administrative expenses are budgeted to be $11,700 each month Required: Prepare a cash budget for Summer Breeze for the month of January and February 2020. Please provide your answer in the table below. Please do not provide for any working, Please round your answers to whole dollar value. All answers must be in s value. If an item I given in Units, please convert these to s values prior to inputting them in the schedule of Receipt or Cash Budget Activate Windows Schedule of Receipt Go an February Type here to search A DW ENG 12 Required: Prepare a cash budget for Summer Breeze for the months of January and February 2020 Please provide your answer in the table below. Please do not All answers must be in s value. If an item is given in Units, please convert these to s values prior to inputting them in the Schedule of Receipt Schedule of Receipt January February November 69,300 6.930 December 89,100 262730 8.910 January 91,300 54.780 27.390 February 60,500 36,300 Total 38:440 72.600 Cash Budget January February Bank balance at beginning of month Anticipated Receipts Cash Sale Credit Sale TOO Activat GOS Total receipts Sale

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

Students also viewed these Accounting questions

Question

6. Identify seven types of hidden histories.

Answered: 1 week ago

Question

What is human nature?

Answered: 1 week ago