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In: Accounting
ToyWorks Selling and Administrative Budget First Quarter For the Year Ended December 31, 2019 Month January...
| ToyWorks | ||||
| Selling and Administrative Budget | ||||
| First Quarter For the Year Ended December 31, 2019 | ||||
| Month | ||||
| January | February | March | Quarter | |
| Cash balance, beginning | 64,165 | $ - | $ - | |
| Receipts | ||||
| Cash sales | $137,500.00 | $275,000.00 | $137,500.00 | $550,000.00 |
| Credit collections | $400,188.00 | $177,750.00 | $198,750.00 | $776,688.00 |
| Total cash available | $601,853.00 | $452,750.00 | $336,250.00 | $1,326,688.00 |
| Less disbursements: | ||||
| Direct materials | $136,934.65 | $99,928.45 | $79,538.00 | $316,400.00 |
| Direct labour | $84,375.00 | $118,125.00 | $74,250.00 | $276,750.00 |
| Variable manufacturing overheads | $40,625.00 | $56,875.00 | $35,750.00 | $133,250.00 |
| Fixed manufacturing overheads | $52,000.00 | $52,000.00 | $34,200.00 | $198,600.00 |
| Variable selling and administrative expense | $16,250.00 | $32,500.00 | $16,250.00 | $65,000.00 |
| Fixed selling and administrative expense | $44,580.00 | $44,580.00 | $44,580.00 | $133,740.00 |
| Income taxes | $1,500.00 | $1,500.00 | $1,500.00 | $4,500.00 |
| Outstanding 2018 income taxes | $0.00 | $0.00 | $21,500.00 | $21,500.00 |
| Equipment purchases | $121,680.00 | $182,520.00 | $0.00 | $304,200.00 |
| Dividends | $0.00 | $0.00 | $50,000.00 | $50,000.00 |
| Total disbursements | $497,944.65 | $588,028.45 | $357,568.00 | $1,503,940.00 |
| Excess (deficiency) of cash available over disbursements |
$ 103,908.35 | $ (135,278.45) | $ (21,318.00) | $ (177,252.00) |
| Financing | ||||
| Borrowings (at beginning) | $ - | $ - | $ - | |
| Repayment (at end) | $ - | $ - | $ - | |
| Total financing | $ - | $ - | $ - | |
-
An arrangement has been made with the local bank that if ToyWorks maintains a minimum balance of $20,000 in their bank account, they will be given a line of credit at a preferred rate of 6% per annum. All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month. All borrowings and repayments from the bank should be in multiples of $1,000 and interest must be paid at the end of each month. Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month.
Complete the financing option for the company
Solutions
Expert Solution
Lets consider the question,
Month
| January | February | March | Quarter | |
| Cash balance, beginning | 64,165 | $ | $ | |
| Receipts | ||||
| Cash sales | $137,500.00 | $275,000.00 | $137,500.00 | $550,000.00 |
| Credit collections | $400,188.00 | $177,750.00 | $198,750.00 | $776,688.00 |
| Total cash available | $601,853.00 | $452,750.00 | $336,250.00 | $1,326,688.00 |
| Less disbursements: | ||||
| Direct materials | $136,934.65 | $99,928.45 | $79,538.00 | $316,400.00 |
| Direct labour | $84,375.00 | $118,125.00 | $74,250.00 | $276,750.00 |
| Variable manufacturing overheads | $40,625.00 | $56,875.00 | $35,750.00 | $133,250.00 |
| Fixed manufacturing overheads | $52,000.00 | $52,000.00 | $34,200.00 | $198,600.00 |
| Variable selling and administrative expense | $16,250.00 | $32,500.00 | $16,250.00 | $65,000.00 |
| Fixed selling and administrative expense | $44,580.00 | $44,580.00 | $44,580.00 | $133,740.00 |
| Income taxes | $1,500.00 | $1,500.00 | $1,500.00 | $4,500.00 |
| Outstanding 2018 income taxes | $0.00 | $0.00 | $21,500.00 | $21,500.00 |
| Equipment purchases | $121,680.00 | $182,520.00 | $0.00 | $304,200.00 |
| Dividends | $0.00 | $0.00 | $50,000.00 | $50,000.00 |
| Total disbursements | $497,944.65 | $588,028.45 | $357,568.00 | $1,503,940.00 |
| Excess (deficiency) of cash available over | ||||
| disbursements | $103,908.35 | ($135,278.45) | ($21,318.00) | $ (177,252.00) |
| Minimum Balance | $20,000.00 | |||
| Financing | ||||
| Financing at beginning | $157,000 | |||
| Borrowings (at beginning)(Multiple of 1000,cannot be negative) | $0 | $157,000 | ||
| Interest charges | $0 | $785 | $900 | |
| Interest payment | $785 | $900 | ||
| Repayment (at end)(multiple of 1000) | $0 | $0 | $ | |
| Total financing | $0 | $157,000 | $180,000 |
ekkarill92 answered 8 months agoRelated Solutions
ToyWorks Selling and Administrative Budget First Quarter For the Year Ended December 31, 2019 Month January...
ToyWorks
Selling and Administrative Budget
First Quarter For the Year Ended December 31,
2019
Month
January
February
March
Quarter
Cash balance, beginning
64,165
$ -
$ -
Receipts
Cash sales
$137,500.00
$275,000.00
$137,500.00
$550,000.00
Credit collections
$400,188.00
$177,750.00
$198,750.00
$776,688.00
Total cash available
$601,853.00
$452,750.00
$336,250.00
$1,326,688.00
Less disbursements:
Direct materials
$136,934.65
$99,928.45
$79,538.00
$316,400.00
Direct labour
$84,375.00
$118,125.00
$74,250.00
$276,750.00
Variable manufacturing overheads
$40,625.00
$56,875.00
$35,750.00
$133,250.00
Fixed manufacturing overheads
$52,000.00
$52,000.00
$34,200.00
$198,600.00
Variable selling and administrative expense
$16,250.00
$32,500.00...
Prepare a selling and administrative expenses budget. October November December Selling and Administrative Expense Budget Salary...
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December
Selling and Administrative
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Salary expense
Sales commissions
Supplies expense
Utilities
Depreciation on store
fixtures
Rent
Miscellaneous
Total S&A expenses
$0
$0
$0
Required information
Problem 14-23 Preparing a master budget for retail company with
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PT ABC is preparing its 4th quarter 2019 financial report (3 month period ended 31 December...
PT ABC is preparing its 4th quarter 2019 financial report (3
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Information for Entity A for the year ended December 31, 2019 ($
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16
Depreciation deducted on tax return in excess of depreciation
expense
32
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8
Interest received on municipal bonds
3
Balance in deferred tax asset...
Information for Entity A for the year ended December 31, 2019 ($ in millions): Income...
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Income from continuing operations before tax
$155
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Depreciation deducted on tax return in excess of depreciation
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Complete the worksheet for the month. JUDGE CREATIVE DESIGNS Worksheet Month Ended January 31, 2019 Account...
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JUDGE CREATIVE DESIGNS
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Month Ended January 31, 2019
Account Name
Trial
Balance
Adjustments
Adjusted Trial Balance
Income Statement
Balance Sheet
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Cash
$36,500
$36,500
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Accounts Receivable
13,600
13,600
13,600
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9,750
8,150
1,600
1,600
Prepaid Advertising
12,400
3,100
9,300
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Prepaid Rent
25,200
2,100
23,100
23,100
Equipment
33,600
33,600
33,600
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3,360
3,360
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Accounts Payable
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16,550
Paula Judge, Capital...
WALNUT GROVE TRIAL BALANCE For the Years Ended December 31, 2019 and December 31, 2020 2019...
WALNUT GROVE
TRIAL BALANCE
For the Years Ended December 31, 2019 and December
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2019
2020
Debit
Credit
Debit
Credit
Cash
185,500
Accounts Receivable
125,600
Inventory
55,000
Prepaid Expenses
-
Building
275,000
Computers & Software
10,000
Furniture & Fixtures
25,000
Land
75,000
Machinery & Equipment
-
Accumulated Depreciation
15,385
Accounts Payable
48,500
Payroll Tax Payable
1,050
Sales Tax Payable
7,913
Unearned Revenue
-
Line of Credit
300,000
Notes Payable
-
Peters, J., Capital
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Peters, M., Capital
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Retained...
The following information is from Amos Company for the year ended December 31, 2019.
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Consider the following information for Huntersville Inc. for thefiscal year ended December 31.Depreciation expense—administrative...
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$800
31
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