Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare the Cash Budget assung Prepare the dance sheet with the information above and remain 1. 1. 2021 cash balance is expected to be 560,000

image text in transcribed
image text in transcribed
Prepare the Cash Budget assung Prepare the dance sheet with the information above and remain 1. 1. 2021 cash balance is expected to be 560,000 2. Sales are embeded to be collected a 60in the quarter of the sale 95% one Quarter after the sale 15 two quarter after the sale 3. Accounts Receivable of 62,000 af 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 2358 in the quarter of purchase 0.35% one quarter after the purchase 30% two quarter after the purchase 5. Short term investments are expected to be sold for 55.000 in the second quarter and $3.500 in the third quarter 6. Long term investment is expected to be sold for 525,000 in the third quarter 7 Direct laboris 100% paid in the quarter incurred 8 Manufacturing overhead, all items except depreciation are paid in the water incurred 9. Selling and administrative expenses, allems except depreciation are paid in the Quarter incurred 10 Management plans to purchase a minivan in the fourth quarter for $35.000, anda delivery truck in the third quarter for $10.600 11. McGregor makes equat quarterly payments of its estimated annual income true 12 Accounts payable of $25,500 at December 31, 2020 are expected to be paid in fuis in the second quarter 13 McGregor wishes to maintain a balance of at least 530,000 inch 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 earfier quarter in which there is sufficient cash that is when the cash on hand exceeds the 530,000 minimum required balance) Pertinencatat December 2020 e Rice # Sugit, 5250.000 Acumulated depreciation 5120 000 Coros 501.000 Redes 523093748 2 The accounts that should be in the statements are Cach Acconcible che story d. Raw material inventory e Accounts payable The accounts medis part of this section 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 530,000 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 Cash Budget assung Prepare the dance sheet with the information above and remain 1. 1. 2021 cash balance is expected to be 560,000 2. Sales are embeded to be collected a 60in the quarter of the sale 95% one Quarter after the sale 15 two quarter after the sale 3. Accounts Receivable of 62,000 af 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 2358 in the quarter of purchase 0.35% one quarter after the purchase 30% two quarter after the purchase 5. Short term investments are expected to be sold for 55.000 in the second quarter and $3.500 in the third quarter 6. Long term investment is expected to be sold for 525,000 in the third quarter 7 Direct laboris 100% paid in the quarter incurred 8 Manufacturing overhead, all items except depreciation are paid in the water incurred 9. Selling and administrative expenses, allems except depreciation are paid in the Quarter incurred 10 Management plans to purchase a minivan in the fourth quarter for $35.000, anda delivery truck in the third quarter for $10.600 11. McGregor makes equat quarterly payments of its estimated annual income true 12 Accounts payable of $25,500 at December 31, 2020 are expected to be paid in fuis in the second quarter 13 McGregor wishes to maintain a balance of at least 530,000 inch 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 earfier quarter in which there is sufficient cash that is when the cash on hand exceeds the 530,000 minimum required balance) Pertinencatat December 2020 e Rice # Sugit, 5250.000 Acumulated depreciation 5120 000 Coros 501.000 Redes 523093748 2 The accounts that should be in the statements are Cach Acconcible che story d. Raw material inventory e Accounts payable The accounts medis part of this section 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 530,000 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)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

What are the components of an ANOV table?

Answered: 1 week ago

Question

Describethe formula(s) used to determine the unemployment rate.

Answered: 1 week ago