Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tamper Lid porperes monthly cash budgets. Relevant data from operating budgets for hold are January February Sale $360,000 1400.000 Direct milerial purchase $125,000 $130,000 $90.000

image text in transcribed
Tamper Lid porperes monthly cash budgets. Relevant data from operating budgets for hold are January February Sale $360,000 1400.000 Direct milerial purchase $125,000 $130,000 $90.000 $100,000 Manufacturing overbead $70,000 $75.000 Selling and administrative expenses $79.000 586 000 Avidtignal Information All sales are on credit Collections are expected to be 50% in the month of sales, 30% in the first month following sale, and 20% in the second month following the sale Sirty per cent of direct material purchases are paid in cash in the month of purchase, and the balance due is paid the month following the purchase All other Nemos above are paid in the month incurred. The selling and administrative expenses includes $1,000 of depreciation per month Actual Credit sales: November 2019, $260,000; December 2019, $300,000 Purchases of direct materials: December 2019, $100,000 21 of 24 Other receiptE January - Collection of 31 December 2019, notes receivable $15,000; February - Proceeds from sale of securities $6,000 4. Other disbursements: February -withdrawal of $5,000 cash for personal use of owner; Dewey Yaeger Verger Lid's cash balance on 01 January 2020, is $70,090. The entity wants to maintain a minimum cash balance of $90,000 Discuss the four (4) benefits to an entity in preparing budgets for the coming financial year (4 marks] Prepare the schedule of receipts from account receivables for January and February 2020 (3 marks) Prepare the schedule of payments to suppliers of direct materials for January and February 2020 (2 marks) Prepare the cash budget for the month ended 31 January 2020 (6 marks)

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

Accounting Information Systems The Crossroads Of Accounting And IT

Authors: Donna Ulmer, Donna Kay, Ali Olia

1st Edition

0132132524, 9780132132527

More Books

Students also viewed these Accounting questions