ACCT 2000 Chapter : C21 Probems

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azuremammoth471

15 Mar 2019

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Danner company expects to have a cash balance of ,000 on january 1, 2014. Relevant monthly budget data for the first 2 months of 2014 are as follows: Payments for direct material: january ,000, february ,000. Wages are paid in the month they are incurred. These costs include depreciation of ,500 per month. All other overhead costs are paid as incurred. Selling and administrative expenses: january ,000, february ,000. Sales of marketable securities in january are expected to realize ,000 in cash. Company has a line of credit at a local bank that enables it to borrow up to ,000. The company wants to maintain a minimum monthly cash balance of ,000. Prepare a cash budget for january and february. Glendo farm supply company manufactures and sells a pesticide call snare. Prepare the budgeted income statement for the first 6 months and all required operating budgets by quarters. (note: use variable and fixed in the selling and administrative expense budget. )

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Hudson Company expects to have a cash balance of $43,000 on January 1, 2017. These are the relevant monthly budget data for the first two months of 2017.

1. Collections from customers: January $95,000, February $142,000

2. Payments to suppliers: January $40,000, February $50,000

3. Wages: January $34,000, February $40,000. Wages are paid in the month they are incurred.

4. Administrative expenses: January $24,000, February $31,000. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.

5. Selling expenses: January $15,000, February $20,000. These costs are exclusive of depreciation. They are paid as incurred.

6. Sales of short-term investments in January are expected to realize $12,000 in cash. Hudson has a line of credit at a local bank that enables it to borrow up to $40,000. The company wants to maintain a minimum monthly cash balance of $25,000.

Prepare a cash budget for January and February.

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Garza Company expects to have a cash balance of $46,000 on January1, 2008.

Relevant monthly budget data for the first 2 months of 2008 are asfollows.

Collections from customers: January $85,000, February$150,000.

Payments for direct materials: January $50,000, February$70,000.

Direct labor: January $30,000, February $45,000. Wages are paid inthe month they are incurred.

Manufacturing overhead: January $21,000, February $25,000. Thesecosts include depreciation of $1,000 per month. All other overheadcosts are paid as incurred.

Selling and administrative expenses: January $15,000, February$20,000. These costs are exclusive of depreciation. They are paidas incurred.

Sales of marketable securities in January are expected to realize$10,000 in cash. Garza Company has a line of credit at a local bankthat enables it to borrow up to $25,000. The company wants tomaintain a minimum monthly cash balance of $20,000.

Prepare a cash budget for January and February. (List amounts fromlargest to smallest eg 10, 5, 3, 2. If answer is zero, please enter0. Do not leave any fields blank.)

GARZA COMPANY
Cash Budget

For the Months Ending February 29, 2008
January February
Beginning cash balance

$

$

Add: Receipts

Total receipts

Total available cash

Less: Disbursements

Total disbursements

Excess (deficiency) of available cash over cash disbursements
Financing

Ending cash balance

$

$

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Colter Company prepares monthly cash budgets. Relevant data fromoperating budgets for 2017 are as follows:

January February

Sales 360,000 $400,000

Direct materials purchases 120,000 125,000

Direct labor 90,000 100,000

Manufacturing overhead 70,000 75,000

Selling and administrative expenses 79,000 85,000

All sales are on account. Collections are expected to be 50% inthe month of sale, 30% in the first month following the sale, and20% in the second month following the sale. Sixty percent (60%) ofdirect materials purchases are paid in cash in the month ofpurchase, and the balance due is paid in the month following thepurchase. All other items above are paid in the month incurredexcept for selling and administrative expenses that include $1,000of depreciation per month.

Other data:

1. Credit sales: November 2016, $250,000; December 2016,$320,000.

2. Purchases of direct materials: December 2016, $100,000.

3. Other receipts: JanuaryâCollection of December 31, 2016,notes receivable $15,000; FebruaryâProceeds from sale of securities $6,000.

4. Other disbursements: FebruaryâPayment of $6,000 cashdividend.

The companyâs cash balance on January 1, 2017, is expected to be$60,000. The company wants to maintain a minimum cash balance of$50,000.

Prepare schedules for (1) expected collections from customersand (2) expected payments for direct materials purchases forJanuary and February.

Prepare a cash budget for January and February in columnarform.

ACCT 2000 Chapter : C21 Probems

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