Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Millen Corporation is a merchandiser that is preparing a master budget for the month of July. The company's balance sheet as of June 30th is

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Millen Corporation is a merchandiser that is preparing a master budget for the month of July. The company's balance sheet as of June 30th is shown below: Millen Corporation Balance Sheet June 30 $120,000 166.000 37.200 554,300 $878,000 Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 93.000 586,000 199.000 $678,000 Millen's managers have made the following additional assumptions and estimates 1. Estimated sales for July and August are $310,000 and $330,000, respectively 2. Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July, 4. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, issue any common stock, or repurchase any of its own common stock during July Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July 4. Prepare a budgeted income statement for the month ended July 31. Use an absorption format 5. Prepare a budgeted balance sheet as of July 31 6. Calculate the estimated accounts receivable turnover and Inventory turnover for the month of July. 7. Calculate the estimated operating cycle for the month of July. (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) 8. Using the Indirect method, calculate the estimated net cash provided by operating activities for July $120,000 166.000 37,200 554,800 $878,000 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 93,000 586,000 199.000 $878,000 Millen's managers have made the following additional assumptions and estimates: 1. Estimated sales for July and August are $310,000 and $330,000, respectively. 2. Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, issue any common stock, or repurchase any of its own common stock during July Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July 4. Prepare a budgeted income statement for the month ended July 3151 Use an absorption format 5. Prepare a budgeted balance sheet as of July 315 6. Calculate the estimated accounts receivable turnover and inventory turnover for the month of July 7. Calculate the estimated operating cycle for the month of July (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) 8. Using the indirect method, calculate the estimated net cash provided by operating activities for July Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required B Calculate the expected cash collections for July Expected cash collections for July Required 2 > $120,000 166,000 37,200 554,800 S878.000 Assets Cash Accounts receivable Inventory Plant and equipment, net of depreciation Total assets Liabilities and Stockholders' Equity Accounts payable Common stock Retained earnings Total liabilities and stockholders' equity $ 93.000 586.000 199.000 $878,000 Millen's managers have made the following additional assumptions and estimates: 1. Estimated sales for July and August are $310,000 and $330,000, respectively 2. Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, issue any common stock, or repurchase any of its own common stock during July Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July 4. Prepare a budgeted income statement for the month ended July 31 Use an absorption format 5. Prepare a budgeted balance sheet as of July 31 6. Calculate the estimated accounts receivable turnover and Inventory turnover for the month of July. 7. Calculate the estimated operating cycle for the month of July (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) 8. Using the Indirect method, calculate the estimated net cash provided by operating activities for July Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required Required 4 Required 5 Required 6 Required Required Calculate the expected cash disbursements for merchandise purchases for July Expected cash disbursements for merchandise purchases for July 3 - Intergration Ex. 4 C15 Saved Lurry pay a un pre u re we the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, Issue any common stock, or repurchase any of its own common stock during July Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July 4. Prepare a budgeted income statement for the month ended July 319 Use an absorption format 5. Prepare a budgeted balance sheet as of July 319 6. Calculate the estimated accounts receivable turnover and inventory turnover for the month of July! 7. Calculate the estimated operating cycle for the month of July. (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) 8. Using the Indirect method, calculate the estimated net cash provided by operating activities for July Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare a cash budget for July Millen Corporation Cash Budget For the Month of July Beginning cash balance Add collections from customers Total cash available Less cash disbursements: Purchase of inventory Selling and administrative expenses Total cash disbursements Excess of cash available over disbursements Financing Borrowing note Repayments-note interest Total financing Ending cash balance Millen's managers have made the following additional assumptions and estimates: 1. Estimated sales for July and August are $310,000 and $330,000, respectively. 2. Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, Issue any common stock, or repurchase any of its own common stock during July Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July 4. Prepare a budgeted income statement for the month ended July 31 Use an absorption format. 5. Prepare a budgeted balance sheet as of July 31st 6. Calculate the estimated accounts receivable turnover and inventory turnover for the month of July 7. Calculate the estimated operating cycle for the month of July. (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) 8. Using the Indirect method, calculate the estimated net cash provided by operating activities for July Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required 7 Required 8 Prepare a budgeted income statement for the month ended July 31. Use an absorption format Millen Corporation Income Statement For the Month of July and the remaining $60.000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, issue any common stock, or repurchase any of its own common stock during July Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July 4. Prepare a budgeted income statement for the month ended July 31st Use an absorption format. 5. Prepare a budgeted balance sheet as of July 31st 6. Calculate the estimated accounts receivable turnover and Inventory turnover for the month of July 7. Calculate the estimated operating cycle for the month of July. (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) 8. Using the Indirect method, calculate the estimated net cash provided by operating activities for July Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required Required 6 Required 7 Required 8 Prepare a budgeted balance sheet as of July 31. Millen Corporation Budgeted Balance Sheet July 31 Assets Liabilities and Stockholders' Equity Total liabilities and stockholders' equity Millen's managers have made the following additional assumptions and estimates: 1. Estimated sales for July and August are $310,000 and $330,000, respectively. 2. Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, Issue any common stock, or repurchase any of its own common stock during July Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July 4. Prepare a budgeted income statement for the month ended July 31st Use an absorption format. 5. Prepare a budgeted balance sheet as of July 31st 6. Calculate the estimated accounts receivable turnover and inventory turnover for the month of July 7. Calculate the estimated operating cycle for the month of July (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) 8. Using the indirect method, calculate the estimated net cash provided by operating activities for July Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required Required & Calculate the estimated accounts receivable turnover and Inventory turnover for the month of July. Round your answers to 2 decimal places.) Accounts receivable turnover Inventory turnover (Required 5 Required 7 > Millen's managers have made the following additional assumptions and estimates: 1. Estimated sales for July and August are $310,000 and $330,000, respectively. 2. Each month's soles are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending Inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60.000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, Issue any common stock, or repurchase any of its own common stock during July Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July 4. Prepare a budgeted income statement for the month ended July 319 Use an absorption format 5. Prepare a budgeted balance sheet as of July 315 6. Calculate the estimated accounts receivable turnover and Inventory turnover for the month of July. 7. Calculate the estimated operating cycle for the month of July. (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) 8. Using the indirect method, calculate the estimated net cash provided by operating activities for July Complete this question by entering your answers in the tabs below. Required 1 Required 3 Required 2 Required 4 Required 5 Required ? Required 6 Required Calculate the estimated operating cycle for the month of July. (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) (Round your intermediate calculations and final answer to 2 decimal places.) Operating cycle days 1. Estimated sales for July and August are $310,000 and $330,000, respectively. 2. Each month's sales are 20% cash sales and 80% credit sales. Each month's credit sales are collected 30% in the month of sale and 70% in the month following the sale. All of the accounts receivable at June 30 will be collected in July 3. Each month's ending Inventory must equal 20% of the cost of next month's sales. The cost of goods sold is 60% of sales. The company pays for 40% of its merchandise purchases in the month of the purchase and the remaining 60% in the month following the purchase. All of the accounts payable at June 30 will be paid in July 4. Monthly selling and administrative expenses are always $70,000. Each month $10,000 of this total amount is depreciation expense and the remaining $60,000 relates to expenses that are paid in the month they are incurred. 5. The company does not plan to buy or sell any plant and equipment during July. It will not borrow any money, pay a dividend, issue any common stock, or repurchase any of its own common stock during July. Required: 1. Calculate the expected cash collections for July 2. Calculate the expected cash disbursements for merchandise purchases for July 3. Prepare a cash budget for July 4. Prepare a budgeted income statement for the month ended July 31 Use an absorption format. 5. Prepare a budgeted balance sheet as of July 31st 6. Calculate the estimated accounts receivable turnover and inventory turnover for the month of July. 7. Calculate the estimated operating cycle for the month of July. (Hint: Use 30 days in the numerator to calculate the average collection period and the average sales period.) 8. Using the indirect method, calculate the estimated net cash provided by operating activities for July Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Required 6 Required Required 8 Using the indirect method, calculate the estimated net cash provided by operating activities for July (Amounts to be deducted should be indicated by a minus sign.) Adjustments to convert net income to a cash basis:

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

Management And Cost Accounting

Authors: Colin Drury

9th Edition

1408093936, 978-1408093931

More Books

Students also viewed these Accounting questions

Question

If you were Akio, what would you do now?

Answered: 1 week ago