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Your friend, Catherine Ross, owns Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces She has contacted you for some assistance because the accounting clerk, George Forrest, recently won a sum of money and decided to resign immediately. Catherine knows that you are completing an accounting course at Cape Breton University and hopes you can prepare the cash budget for the upcoming quarter (April, May and June, 2021). Catherine has provided you with the budgets completed by George. She has also provided you with additional information that will assist with the completion of the cash budget Completed Budgets (April, May, June, and Quarter Total, 2021) Sed Mer Fayl Tical ME AR Toode come Med lehem Conto the net page ADDITIONAL INFORMATION: Cash balance, April 1, 2021-58,000 The company's monthly selling and administrative expenses are provided below. All selling and administrative expenses are paid in the month incurred, with the exception of depreciation and insurance Insurance is paid on an annual basis in December of each year Variable expenses: Commissions 5% of sales Fixed expenses Advertising Rent Wages & salaries Utilities Insurance Depreciation $19.000 20,500 125.000 9,000 3,000 18.000 The company plans to purchase new equipment for cash in May (ST8,000) and June (845,000). The company wants to have an ending cash balance cach month of $40,000. All borrowing is done at the beginning of the month. The interest on outstanding loans is 1 per month. Loan repayments and interest is only paid at the end of the monter ICT mish to do so. The Cash balance, April 1, 2021-88,000 . The company's monthly selling and administrative expenses are provided below. All selling and administrative expenses are paid in the month incurred, with the exception of depreciation and insurance. Insurance is paid on an annual basis in December of each year. Variable expenses Commissions 5% of sales Fixed expenses Advertising $19.000 Rent 20.500 Wages & salaries 125.000 Utilities 9.000 Insurance 3,000 Depreciation 18,000 The company plans to purchase new equipment for cash in May (518,000) and June (845,000). The company wants to have an ending cash balance each month of $40,000. All borrowing is done at the beginning of the month. The interest on outstanding loans is 1% per month. Loan repayments and interest is only paid at the end of the month when there is sufficient cash to do so. (The company does not borrow to pay interest or repay loans.) REQUIRED: Prepare a cash budget in good form. Show the budget by month and in total What will be reported on the budgeted balance sheet at June 30,2021 for accounts receivable? Supporting calculations required What will be reported on the budgeted balance sheet at June 30, 2021 for merchandise purchases payable? Supporting calculations required You may use the template on the next page for the cash budget if you wish Aclapted from Managerial Accounting. 12" Edition, Knacker Can Alaiye Your friend, Catherine Ross, owns Knockoffs Unlimited, a nationwide distributor of low-cost imitation designer necklaces She has contacted you for some assistance because the accounting clerk, George Forrest, recently won a sum of money and decided to resign immediately. Catherine knows that you are completing an accounting course at Cape Breton University and hopes you can prepare the cash budget for the upcoming quarter (April, May and June, 2021). Catherine has provided you with the budgets completed by George. She has also provided you with additional information that will assist with the completion of the cash budget Completed Budgets (April, May, June, and Quarter Total, 2021) Sed Mer Fayl Tical ME AR Toode come Med lehem Conto the net page ADDITIONAL INFORMATION: Cash balance, April 1, 2021-58,000 The company's monthly selling and administrative expenses are provided below. All selling and administrative expenses are paid in the month incurred, with the exception of depreciation and insurance Insurance is paid on an annual basis in December of each year Variable expenses: Commissions 5% of sales Fixed expenses Advertising Rent Wages & salaries Utilities Insurance Depreciation $19.000 20,500 125.000 9,000 3,000 18.000 The company plans to purchase new equipment for cash in May (ST8,000) and June (845,000). The company wants to have an ending cash balance cach month of $40,000. All borrowing is done at the beginning of the month. The interest on outstanding loans is 1 per month. Loan repayments and interest is only paid at the end of the monter ICT mish to do so. The Cash balance, April 1, 2021-88,000 . The company's monthly selling and administrative expenses are provided below. All selling and administrative expenses are paid in the month incurred, with the exception of depreciation and insurance. Insurance is paid on an annual basis in December of each year. Variable expenses Commissions 5% of sales Fixed expenses Advertising $19.000 Rent 20.500 Wages & salaries 125.000 Utilities 9.000 Insurance 3,000 Depreciation 18,000 The company plans to purchase new equipment for cash in May (518,000) and June (845,000). The company wants to have an ending cash balance each month of $40,000. All borrowing is done at the beginning of the month. The interest on outstanding loans is 1% per month. Loan repayments and interest is only paid at the end of the month when there is sufficient cash to do so. (The company does not borrow to pay interest or repay loans.) REQUIRED: Prepare a cash budget in good form. Show the budget by month and in total What will be reported on the budgeted balance sheet at June 30,2021 for accounts receivable? Supporting calculations required What will be reported on the budgeted balance sheet at June 30, 2021 for merchandise purchases payable? Supporting calculations required You may use the template on the next page for the cash budget if you wish Aclapted from Managerial Accounting. 12" Edition, Knacker Can Alaiye
