Below is the abbreviated cash budget for XYZ Pty Ltd.
Beginning Cash Balance | 25,000 | |
Estimated Cash Receipts | ||
Cash Available | 365,000 | |
Estimated Cash Payments | ||
Purchases | 150,000 | |
Operating Expenses | ||
Office Equipment Purchases | 25,000 | |
Total Estimated Cash Payments | ||
Ending Cash Balance | 150,000 |
(a) Calculate the amount of Estimated Cash Receipts, Operating
Expenses, and Total Estimated Cash
Payments.
(b) What action if any should XYZ Pty Ltd take as a result of
preparing this budget? Briefly justify your answer.
SOLUTION
(A) Estimated Cash Receipts = Total cash available - Beginning cash balance
= 365,000 - 25,000 = 340,000
Total Estimated Cash Payments = Total cash available - Ending cash balance
= 365,000 - 150,000 = 215,000
Operating expenses = Total Estimated Cash Payments - Purchases - Office Equipment Purchases
= 215,000 - 150,000 - 25,000 = 40,000
(B) XYZ Pty Ltd. has made the correct budget as they are not required to take any loan to maintain the ending cash balance.
Below is the abbreviated cash budget for XYZ Pty Ltd. Beginning Cash Balance 25,000 Estimated Cash...
Freet Inc. is preparing its cash budget for November. The budgeted beginning cash balance is $25,000. Budgeted cash receipts total $104,000 and budgeted cash disbursements total $95,000. The desired ending cash balance is $75,000. The company can borrow up to $90,000 at any time from a local bank, with interest not due until the following month.
Remington Corporation is preparing its cash budget for June. The budgeted beginning cash balance is $28,000. Budgeted cash receipts total $140,000. Cash disbursements include raw materials purchases of $35,000, property insurance of $14,500, utilities of $10,000, executive salaries of $79,000, and office supplies of $6,300. The desired ending cash balance is $20,000. The excess (deficiency) of cash available over disbursements for June is: Question 16 options: $23,200 $17,900 $64,000 $21,000
On the Cash Budget tab, enter 47200 as the beginning cash balance for the first quarter. Enter the data for the four quarters: SES 29 Quarter 14 $118,400 Quarter #3 $156,000 SES $33,200 Quarter #2 $126,400 Quarter #1 5172,000 Cash Receipts from In-Store Customer Sales Cash Receipts from Online $19,600 $21,200 $24,600 Sales 18871 ESKOL Cash Receipts from $8,000 $4,230 $3,800 Services Rendered Reduction in Notes $960 $1,550 $1,100 si 200 Receivable WWW IS Interest Received $730 $850 S420 $650...
ABC Company has a cash balance of $37,000 on August 1 and
requires a minimum ending cash balance of $24,160. Cash receipts
from sales budgeted for August are $200,160. Cash disbursements
budgeted for August include inventory purchases, $29,000; other
manufacturing expenses, $55,000; operating expenses, $40,000; bond
retirements, $62,000; and dividend payments, $27,000.
Required:
Prepare a cash budget for ABC Company for August.
August Beginning cash balance Cash Receipts: Total cash available Cash Disbursements: Total cash disbursements Ending cash balance
Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $20,000. Budgeted cash receipts total $111,000 and budgeted cash disbursements total $92,000. The desired ending cash balance is $50,000. The company can borrow up to $80,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for March in good form. Make sure to indicate what borrowing, if any, would be needed to attain...
Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $21,000. Budgeted cash receipts total $112,000 and budgeted cash disbursements total $91,000. The desired ending cash balance is $55,000. The company can borrow up to $90,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for March in good form. Make sure to indicate what borrowing, if any, would be needed to attain...
Help Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $27,000. Budgeted cash receipts total $104,000 and budgeted cash disbursements total $87,000. The desired ending cash balance is $70,000. The company can borrow up to $90.000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for March in good form. Make sure to indicate what borrowing, if any, would be needed to...
Zolezzi Inc. is preparing its cash budget for March. The budgeted beginning cash balance is $15,000. Budgeted cash receipts total $106,000 and budgeted cash disbursements total $97,000. The desired ending cash balance is $40,000. The company can borrow up to $80,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for March in good form. Make sure to indicate what borrowing, if any, would be needed to attain...
Freet Inc. is preparing its cash budget for November. The budgeted beginning cash balance is $15,000. Budgeted cash receipts total $106,000 and budgeted cash disbursements total $97,000. The desired ending cash balance is $40,000. The company can borrow up to $80,000 at any time from a local bank, with interest not due until the following month. Required: Prepare the company's cash budget for November in good form. Make sure to indicate what borrowing, if any, would be needed to attain...
Cascade, Ltd., a merchandising firm, is preparing its cash budget for March. The following information is available conceming its inventories: Inventories at beginning of March $ 378,750 Estimated purchases for March 1,485, ese Estimated cost of goods sold for March 1,518,750 Estimated payments in March for purchases in February 371,250 Estimated payments in March for purchases prior to 67 SAA February Estimated payments in March for purchases in March sex Required: What are the estimated cash disbursements in March? Estimated...