Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLS HELP. tables added Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to

PLS HELP.
tables added image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Prepare the Cash Budget assuming: 1. January 1, 2021 cash balance is expected to be $60,000 2. Sales are expected to be collected: a. 60% in the quarter of the sale. b. 25% one quarter after the sale. c. 15% two quarter after the sale, 3. Accounts Receivable of $68,000 at December 31,2020 are expected to be collected in full, $40,000 in the first quarter and the remaining in the second quarter of 2021. 4. Direct material is expected to be paid: a. 35% in the quarter of purchase. b. 35% one quarter after the purchase. c. 30% two quarter after the purchase. 5. Short term investments are expected to be sold for $5,000 in the second quarter and $3,500 in the third quarter. 6. Long term investment is expected to be sold for $25,000 in the third quarter. 7. Direct labor is 100% paid in the quarter incurred. 8. Manufacturing overhead, all items except depreciation are paid in the quarter incurred. 9. Selling and administrative expenses, all items except depreciation are paid in the quarter incurred. 10. Management plans to purchase a minivan in the fourth quarter for $35,000, and a delivery truck in the third quarter for $10,600. 11. McGregor makes equal quarterly payments of its estimated annual income taxes. 12. Accounts payable of $25,500 at December 31, 2020 are expected to be paid in full in the second quarter. 13. McGregor wishes to maintain a balance of at least $30,000 in cash. 14. Assume interest of $1,000 in the repayment 15. Common Stock are expected to be issued in the fourth quarter for an amount of 20,000 . 16. Loans are repaid in the earlier quarter in which there is sufficient cash (that is when the cash on hand exceeds the $30,000 minimum required balance). Prepare the Budgeted Balance Sheet with the information above and the following information: 1. Pertinent data at December 31,2020 are as follows: a. Building and equipment, $250,000 b. Accumulated depreciation $120,000 c. Common stocks $201,000 d. Retained earnings $230,997.48 2. The accounts that should be in the statements are: a. Cash b. Account receivable c. Finished goods inventory d. Raw material inventory e. Accounts payable f. The accounts mentioned in part 1 of this section. McGregor Pharmaty Company Cash budget January 1,2021 McGregor Pharmacy Company Budgeted balance sheet

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

More Books

Students also viewed these Accounting questions

Question

What is a deferred annuity?

Answered: 1 week ago

Question

What do you mean by dual mode operation?

Answered: 1 week ago

Question

Explain the difference between `==` and `===` in JavaScript.

Answered: 1 week ago

Question

5. How would you describe your typical day at work?

Answered: 1 week ago

Question

7. What qualities do you see as necessary for your line of work?

Answered: 1 week ago