Q. March, April and May inventory purchases are expected to total $100,000, $120,000 and $125,000, respectively....
Q. March, April and May inventory purchases are expected to total $100,000, $120,000 and $125,000, respectively. A total of 80% of purchases are on credit and 20% are paid in cash at the time of the purchase. A total of 60% of credit purchases are paid in the month of the sale and 40% are paid in the following month. If a pro forma balance sheet is created for the end of May, what would be the Accounts Payable balance?
A. $40,000
B. $50,000
C. $72,000
D. $80,000
Q. The process of budgeting is usually performed once every 2-5 years and results in forward looking financial statements.
A. True
B. False
Q. The financing section of the Cash Budget should be prepared:
A. Prior to calculating the Cash Disbursements section of the Cash Budget
B. At the same time the Cash Disbursements section of the SG&A Budget is prepared
C. As the last step of the Cash budget, and before pro forma financial statement are prepared
D. Prior to determining the desired Ending Cash Balance for each month
Q. The preparation of Pro Formal Financial Statements and other budgeting schedules are required by U.S. GAAP to be included in published financial statements
A. True
B. False
Homework Answers
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Q. March, April and May inventory purchases are expected to
total $100,000, $120,000 and $125,000, respectively....
Vernon Books expects to purchase the following supplies: April May June Required purchases (on account) $...
Vernon Books expects to purchase the following supplies:
April
May
June
Required purchases (on account)
$
110,000
$
130,000
$
142,000
Vernon Books’s accountant prepared the following schedule of
cash payments for supplies purchases. Vernon Books’s suppliers
require that 85 percent of purchases on account be paid in the
month of purchase; the remaining 15 percent are paid in the month
following the month of purchase.
Required
Complete the schedule of cash payments for supplies purchases by
filling in the...
Fanning Books expects to purchase the following supplies: April May June Required purchases (on account) $...
Fanning Books expects to purchase the following supplies:
April
May
June
Required purchases (on account)
$
112,000
$
132,000
$
144,000
Fanning Books’s accountant prepared the following schedule of
cash payments for supplies purchases. Fanning Books’s suppliers
require that 85 percent of purchases on account be paid in the
month of purchase; the remaining 15 percent are paid in the month
following the month of purchase.
Required
Complete the schedule of cash payments for supplies purchases by
filling in the...
Campbell Books expects to purchase the following supplies: May Required purchases (on account) April $118,000 $138,000...
Campbell Books expects to purchase the following supplies: May Required purchases (on account) April $118,000 $138,000 June $150,000 points Campbell Books's accountant prepared the following schedule of cash payments for supplies purchases. Campbell Books's suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month following the month of purchase. Required Print a. Complete the schedule of cash payments for supplies purchases by filling in the...
Required purchases (on account) April $102,000 May $122,000 June $134,000 Solomon Books' accountant prepared the following...
Required purchases (on account) April $102,000 May $122,000 June $134,000 Solomon Books' accountant prepared the following schedule of cash payments for inventory purchases. Solomon Books suppliers require that 90 percent of purchases on account be paid in the month of purchase the remaining 10 percent are paid in the month following the month of purchase. Required a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. b. Determine the amount of accounts payable the...
Walton Books expects to purchase the following supplies: Required purchases (on account) April $114,000 May $134,000...
Walton Books expects to purchase the following supplies: Required purchases (on account) April $114,000 May $134,000 June $146,000 Walton Books's accountant prepared the following schedule of cash payments for supplies purchases. Walton Books's suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase. Required a. Complete the schedule of cash payments for supplies purchases by filling in the missing amounts....
Vernon Books expects to purchase the following supplies: Required purchases (on account) April $111,000 $131,000 $143,000...
Vernon Books expects to purchase the following supplies: Required purchases (on account) April $111,000 $131,000 $143,000 Vernon Books's accountant prepared the following schedule of cash payments for supplies purchases. Vernon Books's suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month following the month of purchase. Required a. Complete the schedule of cash payments for supplies purchases by filling in the missing amounts. b. Determine...
a. Budgeted monthly absorption costing income statements for April-July are: April May June July $ 470,000...
a. Budgeted monthly absorption costing income statements for April-July are: April May June July $ 470,000 $1,000,000 $450,000 $ 350,000 329,000 700,000 315,000 245,000 141,000 300,000 135,000 105,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net operating income 91,000 42,500 133,500 7,500 $ 95,000 56,800 151,800 148,200 $ 56,000 35,000 9 1,000 44,000 $ 35,000 33,000 68,000 37,000 $ *Includes $17,000 of depreciation each month. b. Sales...
need 1-4 answered! please help! 2) Schedule of expected cash collections: April May Jun Total sha...
need 1-4 answered! please help!
2) Schedule of expected cash collections: April May Jun Total sha Tootections .. Nordic Cerpeny, a merchandising company pre- pares its master budget un quarterly base. The following data Save been assembled to Assist in preparation of the master budget for the second quarter. 2. As of March 31 (the end of the prior quare), the company's balance sheet showed the following account balances: June May $1,000 Total Accounts Receivable : Imory HERE ** Plant...
The purchasing department manager for Franklin Company prepared the following supplies purchases budget. Franklin's policy is...
The purchasing department manager for Franklin Company prepared the following supplies purchases budget. Franklin's policy is to maintain an ending supplies balance equal to 10 percent of the following month's supplies expense. April's budgeted supplies expense is $77,000. Required a. Complete the supplies purchases budget by filling in the missing amounts. b. Determine the amount of supplies expense the company will report on its first quarter pro forma income statement c. Determine the amount of ending supplies the company will...
Problem 14-18 Preparing an inventory purchases budget and schedule of cash payments LO 14-3 Humboldt, Inc....
Problem 14-18 Preparing an inventory purchases budget and schedule of cash payments LO 14-3 Humboldt, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July April May June July $37,500 $34.000 $30,000 $45,000 Budgeted cost of goods sold Humboldt had a beginning inventory balance of $1,800 on April 1 and a beginning balance in accounts payable of $7.400. The company desires to maintain an ending inventory balance equal to...
Vernon Books expects to purchase the following supplies:
April
May
June
Required purchases (on account)
$
110,000
$
130,000
$
142,000
Vernon Books’s accountant prepared the following schedule of
cash payments for supplies purchases. Vernon Books’s suppliers
require that 85 percent of purchases on account be paid in the
month of purchase; the remaining 15 percent are paid in the month
following the month of purchase.
Required
Complete the schedule of cash payments for supplies purchases by
filling in the...
Fanning Books expects to purchase the following supplies:
April
May
June
Required purchases (on account)
$
112,000
$
132,000
$
144,000
Fanning Books’s accountant prepared the following schedule of
cash payments for supplies purchases. Fanning Books’s suppliers
require that 85 percent of purchases on account be paid in the
month of purchase; the remaining 15 percent are paid in the month
following the month of purchase.
Required
Complete the schedule of cash payments for supplies purchases by
filling in the...
Campbell Books expects to purchase the following supplies: May Required purchases (on account) April $118,000 $138,000 June $150,000 points Campbell Books's accountant prepared the following schedule of cash payments for supplies purchases. Campbell Books's suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month following the month of purchase. Required Print a. Complete the schedule of cash payments for supplies purchases by filling in the...
Required purchases (on account) April $102,000 May $122,000 June $134,000 Solomon Books' accountant prepared the following schedule of cash payments for inventory purchases. Solomon Books suppliers require that 90 percent of purchases on account be paid in the month of purchase the remaining 10 percent are paid in the month following the month of purchase. Required a. Complete the schedule of cash payments for inventory purchases by filling in the missing amounts. b. Determine the amount of accounts payable the...
Walton Books expects to purchase the following supplies: Required purchases (on account) April $114,000 May $134,000 June $146,000 Walton Books's accountant prepared the following schedule of cash payments for supplies purchases. Walton Books's suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase. Required a. Complete the schedule of cash payments for supplies purchases by filling in the missing amounts....
Vernon Books expects to purchase the following supplies: Required purchases (on account) April $111,000 $131,000 $143,000 Vernon Books's accountant prepared the following schedule of cash payments for supplies purchases. Vernon Books's suppliers require that 90 percent of purchases on account be paid in the month of purchase; the remaining 10 percent are paid in the month following the month of purchase. Required a. Complete the schedule of cash payments for supplies purchases by filling in the missing amounts. b. Determine...
a. Budgeted monthly absorption costing income statements for April-July are: April May June July $ 470,000 $1,000,000 $450,000 $ 350,000 329,000 700,000 315,000 245,000 141,000 300,000 135,000 105,000 Sales Cost of goods sold Gross margin Selling and administrative expenses: Selling expense Administrative expense Total selling and administrative expenses Net operating income 91,000 42,500 133,500 7,500 $ 95,000 56,800 151,800 148,200 $ 56,000 35,000 9 1,000 44,000 $ 35,000 33,000 68,000 37,000 $ *Includes $17,000 of depreciation each month. b. Sales...
need 1-4 answered! please help!
2) Schedule of expected cash collections: April May Jun Total sha Tootections .. Nordic Cerpeny, a merchandising company pre- pares its master budget un quarterly base. The following data Save been assembled to Assist in preparation of the master budget for the second quarter. 2. As of March 31 (the end of the prior quare), the company's balance sheet showed the following account balances: June May $1,000 Total Accounts Receivable : Imory HERE ** Plant...
The purchasing department manager for Franklin Company prepared the following supplies purchases budget. Franklin's policy is to maintain an ending supplies balance equal to 10 percent of the following month's supplies expense. April's budgeted supplies expense is $77,000. Required a. Complete the supplies purchases budget by filling in the missing amounts. b. Determine the amount of supplies expense the company will report on its first quarter pro forma income statement c. Determine the amount of ending supplies the company will...
Problem 14-18 Preparing an inventory purchases budget and schedule of cash payments LO 14-3 Humboldt, Inc. sells fireworks. The company's marketing director developed the following cost of goods sold budget for April, May, June, and July April May June July $37,500 $34.000 $30,000 $45,000 Budgeted cost of goods sold Humboldt had a beginning inventory balance of $1,800 on April 1 and a beginning balance in accounts payable of $7.400. The company desires to maintain an ending inventory balance equal to...
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