Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

one of my answers is wrong but idk which one i. In August the company sold old equipment for $6,000 cash. j. In August the

one of my answers is wrong but idk which one

image text in transcribedimage text in transcribedimage text in transcribed
i. In August the company sold old equipment for $6,000 cash. j. In August the company purchased new equipment for $20,000 cash. k. The cash balance on August 1 is expected to be $50,700. |. The company maintains a minimum cash balance of $41000 per month. Prepare a cash budget for AUGUST. What is the beginning cash balance for August? 50700 What is the total collections on accounts receivable for August? HINT: Produce a cash collections schedule to determine this amount! __776500 _ What is the total of all other miscellaneous cash collected during August. HINT: consider other cash collections such as from notes receivable and the sale of equipment, if applicable. 6000 What is the total cash available forAugust? __833200 _ What is the total payment (cash disbursement) for direct materials for August? 227600 What is the total payment (cash disbursement) for direct labour for August? __1 12000 _ What is the total payment (cash disbursement) for overhead for August? What is the total disbursements for August? 3 19600 What is the excess (deficiency) of cash available over needs? NOTE: if there is a deficiency enter your number as a negative (preceded by a minus sign) or in brackets. Does the company need to borrow funds in order to meet their minimum cash requirements? Enter eitherY for YES or N for NO Anthony Ltd. prepares monthly cash budgets. The following information is available for the company: July August Sales $357,000 $404,000 Direct materials purchases $119,000 $111,000 Direct labour $84,000 $112,000 Manufacturing overhead $69,000 $89,000 Selling & administrative expenses $76,000 $80,000 The following additional information is available: a. Sales are 100% on account and the company expects to collect 50% in the month of sale, 40% in the month following sale and 10% in the month after that. b. Direct material purchases are paid 30% in the month of purchase and 70% in the month after purchase. c. Sales for May were $201,000 and sales in June were $277,000. d. The company purchased $90,000 of direct materials in June. e. Direct labour is paid in the month the costs are incurred. f. Manufacturing overhead includes $10,000 of depreciation every month. The remaining costs are paid in the month incurred. g. Selling and administrative expenses include $5,000 of depreciation per month. The remaining cost are paid in the month incurred. h. In July the company collected $4,000 on a notes receivable

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

Modern Advanced Accounting In Canada

Authors: Murray Hilton

6th Edition

0070001537, 978-0070001534

More Books

Students also viewed these Accounting questions

Question

What is the target of the drug tetracycline?

Answered: 1 week ago

Question

What reward will you give yourself when you achieve this?

Answered: 1 week ago