Homework Answers
| Receipts and payments method:- This is the most practical method to prepare the cash budget. Under this method, the company should be forecasted the future receipts from customers and other activities, as well as future payment, which needs to be forecasted. |
| Adjusted Profit and Loss Method: - Under this method, the company needs to first determine the net income. After then, you need to adjust the net income. Change in the operating assets and operating liabilities and non-cash expenses need to be adjusted with the net income. |
| Balance Sheet Method:- Under this method, first you need to forecast all permanents accounts (such as assets, liabilities, and equity) except cash. The cash is determined through the rebalancing using the accounting equation. |
| Correct answer :- Receipts and payments method |
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A) Budgeting and Budgetary Control (Three methods of preparing cash budget; Receipts and Payments Method, Adjusted...
Question 5 1 pts The three major sections of the cash budget include Financing Cash receipts...
Question 5 1 pts The three major sections of the cash budget include Financing Cash receipts Cash disbursements all of the above Question 6 1 pts Select the TRUE statement about budgeting for not-for-profit companies. Budgeting is just as important as for profit-oriented companies. Budgeting is very similar to for-profit companies. Budgeting is on the same basis of revenues and expenses as for-profit companies. The starting point is the same as for-profit companies, the sales or receipts budget.
Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts an...
Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts and cash payments budget so that data is provided: October November Beginning Cash Balance $16000 Expected Cash Receipts $63000 $95000 Expected Cash Payments $45000 $76000 Management always wants to maintain a $41,196 minimum cash balance at the end of every month. If there is an expected cash shortfall in the budget they will be proactive and borrow money at the first...
Budgeting Go Car Repair Ltd intends to prepare a cash budget for December and January. The...
Budgeting
Go Car Repair Ltd intends to prepare a cash budget for December and January. The actual revenue for October and November and projected revenue for December and January are outlined below: Actual Budgeted October November December January Cash Sales 63,000 61,000 72,000 60,000 Credit Sales 90,000 110,000 130,000 80,000 Total Sales S153,000 $171.000 S202,000 S140,000 The cash balance at the end of November is $60,000. • Analysis of records has shown that credit sales are collected over a three-month...
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist...
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist has prepared the following sales budget. The company had $200,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma...
2 parts Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of...
2 parts
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist has prepared the following sales budget. The company had $370,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter...
Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash...
Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted July 562,450 43.600 August $81,500 32.009 September $49,609 3 2.30 Cash payments for nerchandise Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet Includes balances of $13.900 in cash, $51,100 in accounts receivable; $6,100 in accounts payable, and a...
Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash...
Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow Budgeted Sales Cash payments for merchandise July $62,800 42,800 August $81, 2ee 32,400 September $49,200 33,200 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $13,500 in cash: $49,600 in accounts receivable: $5.700 in accounts payable, and...
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather’s Florist has prepared the fo...
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2
The budget director of Heather’s Florist has prepared the
following sales budget. The company had $270,000 in accounts
receivable on July 1. Heather’s Florist normally collects 100
percent of accounts receivable in the month following the month of
sale.
Required
Complete the schedule of cash receipts by filling in
the missing amounts.
Determine the amount of accounts receivable the company
will report on its third quarter pro forma balance
sheet....
Activity-Based Budgeting St. Sophia’s Hospital is preparing its budget for the coming year. It uses an...
Activity-Based Budgeting St. Sophia’s Hospital is preparing its budget for the coming year. It uses an activity-based approach for all costs except physician care. Its emergency room has three activity areas with cost drivers as follows: 1. Reception—paperwork of incoming patients. Cost driver is the number of forms completed. 2. Treatment—initial diagnosis and treatment of patients. Cost driver is the number of diagnoses treated. 3. Cleaning—general cleaning plus preparing treatment facilities for next patient. Cost driver is the number of...
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist has prepared...
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist has prepared the following sales budget. The company had $310,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma...
Question 5 1 pts The three major sections of the cash budget include Financing Cash receipts Cash disbursements all of the above Question 6 1 pts Select the TRUE statement about budgeting for not-for-profit companies. Budgeting is just as important as for profit-oriented companies. Budgeting is very similar to for-profit companies. Budgeting is on the same basis of revenues and expenses as for-profit companies. The starting point is the same as for-profit companies, the sales or receipts budget.
Budgeting
Go Car Repair Ltd intends to prepare a cash budget for December and January. The actual revenue for October and November and projected revenue for December and January are outlined below: Actual Budgeted October November December January Cash Sales 63,000 61,000 72,000 60,000 Credit Sales 90,000 110,000 130,000 80,000 Total Sales S153,000 $171.000 S202,000 S140,000 The cash balance at the end of November is $60,000. • Analysis of records has shown that credit sales are collected over a three-month...
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist has prepared the following sales budget. The company had $200,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma...
2 parts
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist has prepared the following sales budget. The company had $370,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter...
Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted July 562,450 43.600 August $81,500 32.009 September $49,609 3 2.30 Cash payments for nerchandise Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet Includes balances of $13.900 in cash, $51,100 in accounts receivable; $6,100 in accounts payable, and a...
Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow Budgeted Sales Cash payments for merchandise July $62,800 42,800 August $81, 2ee 32,400 September $49,200 33,200 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $13,500 in cash: $49,600 in accounts receivable: $5.700 in accounts payable, and...
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2
The budget director of Heather’s Florist has prepared the
following sales budget. The company had $270,000 in accounts
receivable on July 1. Heather’s Florist normally collects 100
percent of accounts receivable in the month following the month of
sale.
Required
Complete the schedule of cash receipts by filling in
the missing amounts.
Determine the amount of accounts receivable the company
will report on its third quarter pro forma balance
sheet....
Exercise 14-3 Preparing a schedule of cash receipts LO 14-2 The budget director of Heather's Florist has prepared the following sales budget. The company had $310,000 in accounts receivable on July 1. Heather's Florist normally collects 100 percent of accounts receivable in the month following the month of sale. Required a. Complete the schedule of cash receipts by filling in the missing amounts. b. Determine the amount of accounts receivable the company will report on its third quarter pro forma...
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