Q6

Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: lst Quarter 2nd Quarter 3rd Quarter 4th Quarter Total cash receipts $ 230,000 $ 380,000 $ 260,000 $ 280,000 Total cash disbursements $ 295.000 $ 265.000 $ 255,000 $ 275,000 The company's beginning cash balance forthe upcoming fiscal year will be $30,000. The company requires a minimum cash balance of $10,000 and may borrow any amount needed from a local bank at a quarterly interest rate of 3%. The company may borrow any amount at the beginning of any quarter and may repay its loans, or any part of its loans, at the end of any quarter. Interest payments are due on any principal at the time it is repaid. For simplicity, assume that interest is not compounded. Required: Prepare the company's cash budget for the upcoming fiscal year. Note: Repayments, interest, and cash deficiencies should be indicated by a minus sign. Beginning cash balance Total cash receipts Total cash available Total cash disbursements Excess (deciency) of cash available over disbursements ----_ Total nancing 0 O 0 0 _ Ending cash balance $ 0 $ 0 $ 0 $ 0 _ Flight Cafe prepares inflight meals for airlines in its kitchen located next to a local airport. The company's planning budget for July appears below: Flight Caf Planning Budget For the Month Ended July 31 Budgeted meals (q) 20,000 Revenue ($3.80q) $ 76,000 Expenses: Raw materials ($1.90q) 38,000 Wages and salaries ($6,300 + $0.20q) 10,300 Utilities ($2,100 + $0.05q) 3,100 Facility rent ($3,300) 3,300 Insurance ($2,700) 2,700 Miscellaneous ($900 + $0.10q) 2,900 Total expense 60,300 Net operating income $ 15,700 In July, 21,000 meals were actually served. The company's flexible budget for this level of activity appears below: Flight Caf Flexible Budget For the Month Ended July 31 Budgeted meals (q) 21,000 Revenue ($3.80q) $ 79,800 Expenses: Raw materials ($1.90q) 39,900 Wages and salaries ($6,300+ $0.20q) 10,500 Utilities ($2,100 + $0.05q) 3,150 Facility rent ($3,300) 3,300 Insurance ($2,700) 2,700 Miscellaneous ($900 + $0.10q) 3.000 Total expense 62,550 Net operating income $ 17,250 Requhed: 1. Calculate the company's activity variances for July. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Required: 1. Calculate the company's activity variances for July. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Revenue Expenses: Raw materials Utilities Facility rent Insurance Total expense Net operating income Quilcene Oysteria farms and sells oysters in the Pacic Northwest. The company harvested and sold 7,900 pounds of oysters in August: The company's flexible budget for August appears below: Quilcene Oysteria Flexible Budget For the Month Ended August 31 Actual pounds (q) 7,900 Revenue ($4.20q) $ 33,180 Expenses: Packing supplies ($0.35q) 2,765 Oyster bed maintenance ($3,500) 3,500 Wages and salaries ($2,200 + $0.30q) 4,570 Shipping ($0.65q) 5,135 Utilities ($1,230) 1,230 Other ($450 + $0.0m) 529 Total expense 17,729 Net operating income $ 15.451 The actual results for August were as follows: Quilcene Oysteria Income Statement For the Month Ended August 31 Actual pounds 7,900 Revenue $ 27,000 Expenses: Packing supplies 2,935 Oyster bed maintenance 3,360 Wages and salaries 4,980 Shipping 4,865 Utilities 1,040 Other 1,149 Total expense 18,329 Net operating income $ 8,671 Requhed: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero Required: Calculate the company's revenue and spending variances for August. Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). input all amounts as positive values. Expenses: Packing supplies Oyster bed maintenance Other Total expense Net operating income Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides estimates concerning the company's costs: Fixed Cost per Cost per Month Car Washed Cleaning supplies $ 0.70 Electricity $ 1,300 $ 0.10 Maintenance $ 0.20 Wages and salaries $ 4,200 $ 0.30 Depreciation $ 8,100 Rent $ 2,100 Administrative expenses $ 1,700 $ 0.02 For example, electricity costs should be $1,300 per month plus $0.10 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.40 per car washed. Required: Prepare the company's planning budget for August. Lavage Rapide Planning Budget For the Month Ended August 31 Revenue Expenses: Cleaning supplies Electricity Maintenance Wages and salaries Depreciation Rent Administrative expenses Total expense Net operating income