Case 3 Part 1 - Cash Budget Discuss the purpose of the cash budget. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used? Give an example of how the capital expenditures budget affects other operating budgets. The controller...
Case 3 Part 1 - Cash Budget Discuss the purpose of the cash budget. If the cash for the first quarter of the fiscal year indicates excess cash at the end of each of the first two months, how might the excess cash be used? Give an example of how the capital expenditures budget affects other operating budgets. The controller...
Munoz, 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 Budgeted cost of goods sold $79,000 $89,000 $99,000 $105,000 Munoz had a beginning inventory balance of $4,400 on April 1 and a beginning balance in accounts payable of $14,900. The company desires to maintain...
Cash Budget The controller of Sonoma Housewares Inc. Instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget Information: May June July Sales Manufacturing costs $86,000 34,000 15,000 $90,000 39,000 16,000 $95,000 44,000 22,000 Selling and administrative expenses Capital expenditures - 80,000 The company expects to sell about 10% of...
Show transcribed image text Problem 22-7AA Merchandising: Preparation and analysis of cash budgets with supporting inventory and purchases budgets LO P4 Aztec Company sells its product for $160 per unit. Its actual and budgeted sales follow. April (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) Units 4,000 1,800 5,500 4,500 4,100 Dollars $ 640,000 288,000 880,000 879,000 656,000 All...
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 10 percent of the next period's cost of goods sold. Humboldt makes all purchases on account....
The controller of Sonoma Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: May June July Sales $107,000 $135,000 $181,000 Manufacturing costs 45,000 58,000 65,000 Selling and administrative expenses 31,000 36,000 40,000 Capital expenditures _ _ 43,000 The company expects to sell about 15% of its...
Rooney, 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 Budgeted cost of goods sold $77,000 $87,000 $97,000 $100,000 Rooney had a beginning inventory balance of $4,600 on April 1 and a beginning balance in accounts payable of $14,800. The company desires to maintain...
You have been asked to prepare the monthly cash budget for June and July for the Merchandise and Mercantile Company. The company sells a unique product that is specially made for it by a major product manufacturer. The selling price is $18.00 per unit. All sales are on account. Merchandise purchases are also on account. The policy of the company...
Aztec Company sells its product for $190 per unit its actual and budgeted sales to low. Units Dollars $950,000 Aprill (actual) May (actual) June (budgeted) July (budgeted) August (budgeted) 5.000 2,000 7,500 6,000 4,300 380,000 1.425,000 1.140,000 817,000 All sales are on credit. Recent experience shows that 20% of credit sales is collected in the month of the sale, 50%...