Solution 1:
Computation of Collection from Customer | |||
Particulars | September | October | November |
Collection for July Sales | $34,200.00 | ||
Collection for August Sales | $86,800.00 | $37,200.00 | |
Collection for September Sales | $89,460.00 | $38,340.00 | |
Collection for October Sales | $112,140.00 | ||
Total cash collections | $121,000.00 | $126,660.00 | $150,480.00 |
Computation of Cash payment of manufacturing costs | |||
Particulars | September | October | November |
Payment for August Manufacturing cost | $6,000.00 | ||
Payment for September Manufacturing cost | $43,200.00 | $10,800.00 | |
Payment for October Manufacturing cost | $56,800.00 | $14,200.00 | |
Payment for November Manufacturing cost | $61,600.00 | ||
Total cash disbursements | $49,200.00 | $67,600.00 | $75,800.00 |
Bridgeport Housewares Inc. | |||
Cash Budget | |||
For the Three Months Ending November 30 | |||
Particulars | September | October | November |
Estimated cash receipts from: | |||
Cash sales | $14,200.00 | $17,800.00 | $23,100.00 |
Collection of accounts receivable | $121,000.00 | $126,660.00 | $150,480.00 |
Total cash receipts | $135,200.00 | $144,460.00 | $173,580.00 |
Less estimated cash payments for: | |||
Manufacturing costs | $49,200.00 | $67,600.00 | $75,800.00 |
Selling and administrative expenses | $50,000.00 | $53,000.00 | $88,000.00 |
Capital expenditures | $55,000.00 | ||
Other purposes: | |||
Income tax | $21,000.00 | ||
Dividends | $6,000.00 | ||
Total cash payments | $99,200.00 | $141,600.00 | $224,800.00 |
Cash increase or (decrease) | $36,000.00 | $2,860.00 | -$51,220.00 |
Plus cash balance at beginning of month | $54,000.00 | $90,000.00 | $92,860.00 |
Cash balance at end of month | $90,000.00 | $92,860.00 | $41,640.00 |
Less minimum cash balance | $53,000.00 | $53,000.00 | $53,000.00 |
Excess or (deficiency) | $37,000.00 | $39,860.00 | -$11,360.00 |
Solution 2:
The budget indicates that the minimum cash balance could not be maintained in November. This situation can be corrected by obtaining loan or by the selling of the marketable securities, if they are held for such purposes. At the end of September and October, the cash balance will have the minimum desired balance.
Cash Budget The controller of Bridgeport Housewares Inc. Instructs you to prepare a monthly cash budget...
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $136,000 $166,000 $227,000 Manufacturing costs 57,000 71,000 82,000 Selling and administrative expenses 48,000 50,000 86,000 Capital expenditures _ _ 54,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the...
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $137,000 $173,000 $223,000 Manufacturing costs 58,000 74,000 80,000 Selling and administrative expenses 48,000 52,000 85,000 Capital expenditures _ _ 54,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the...
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $96,000 $114,000 $153,000 Manufacturing costs 40,000 49,000 55,000 Selling and administrative expenses 34,000 34,000 58,000 Capital expenditures _ _ 37,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the...
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $137,000 58,000 $173,000 74,000 $226,000 81,000 Manufacturing costs Selling and administrative expenses 48,000 52,000 86,000 Capital expenditures 54,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and...
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $130,000 $161,000 $211,000 Manufacturing costs 55,000 69,000 76,000 Selling and administrative expenses 46,000 48,000 80,000 Capital expenditures _ _ 51,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the...
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $121,000 $155,000 $201,000 Manufacturing costs 51,000 67,000 72,000 Selling and administrative 42,000 47,000 76,000 expenses Capital expenditures 48,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and...
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $141,000 $176,000 $ $241,000 Manufacturing costs 59,000 76,000 87,000 49,000 53,000 92,000 Capital expenditures ------------------------------------------------------------ ------------------------------------------------------------------------- 58,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the...
The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $114,000 $140,000 $189,000 Manufacturing costs 48,000 60,000 68,000 Selling and administrative expenses 40,000 42,000 72,000 Capital expenditures _ _ 45,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and...
The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November Sales $142,000 $169,000 $224,000 Manufacturing costs 60,000 73,000 81,000 Selling and administrative expenses 50,000 51,000 85,000 Capital expenditures _ _ 54,000 The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and...
Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: September October November $250,000 $300,000 $315,000 Sales 150,000 185,000 180,000 Manufacturing costs Selling and administrative 51,000 42,000 48,000 expenses 200,000 Capital expenditures The company expects to sell about 10 % of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale...