Question

In: Finance

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...

  1. Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2002

April

May

June

Credit Sales

$330,000

$372,000

$432,000

Credit purchases

132,000

150,000

185,000

Cash disbursements

Wages, taxes, and expenses

20,400

22,200

25,200

Interest

9,600

9,600

9,600

Equipment purchases

70,000

84,000

0

                                   

The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale, and the remaining 60 percent will be collected in the following month. Credit purchases will be paid in the month following the purchase.

In March 2002, credit sales were $210,000, and credit purchases were $156,000. Using this information, complete the following cash budget:

April

May

June

Beginning cash balance

$300,000

Cash receipts

Cash collections from credit sales

Total cash available

Cash disbursements

Purchases

Wages, taxes, and expenses

Interest

Equipment purchases

Total cash disbursements

Ending cash balance

Solutions

Expert Solution


Related Solutions

Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...
Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2015: April May June   Credit sales $ 317,000 $ 297,000 $ 357,000   Credit purchases 125,000 148,000 173,000   Cash disbursements     Wages, taxes, and expenses 43,700 11,200 62,700     Interest 10,700 10,700 10,700     Equipment purchases 77,000 144,000 0 The company predicts that 5 percent of its credit sales will never be collected, 25 percent of its sales will be collected in the month of the sale,...
Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...
Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2018: April May June   Credit sales $ 315,000 $ 295,000 $ 355,000   Credit purchases 123,000 146,000 171,000   Cash disbursements     Wages, taxes, and expenses 43,500 11,000 62,500     Interest 10,500 10,500 10,500     Equipment purchases 75,000 140,000 0 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale,...
Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter...
Here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2015: April May June Credit sales $ 311,000 $ 291,000 $ 351,000 Credit purchases 119,000 142,000 167,000 Cash disbursements Wages, taxes, and expenses 43,100 10,600 62,100 Interest 10,100 10,100 10,100 Equipment purchases 71,000 132,000 0 The company predicts that 5 percent of its credit sales will never be collected, 35 percent of its sales will be collected in the month of the sale,...
Here are some important figures from the budget of Cornell, Inc., for the second quarter of...
Here are some important figures from the budget of Cornell, Inc., for the second quarter of 2017 April May June Credit sales $ 324,000 $ 304,000 $ 364,000 Credit purchases 132,000 155,000 180,000 Cash disbursements Wages, taxes, and expenses 44, 400 11,900 63,400 Interest 11,400 11,400 11,400 Equipment purchases 84,000 158,000 0 The company predicts that 5 percent of its credit sales will never be collected, 40 percent of its sales will be collected in the month of the sale,...
Here are some important figures from the budget of Wise Corporation for the third quarter of 2020:
Here are some important figures from the budget of Wise Corporation for the third quarter of 2020:---------JulyAugustSeptemberCredit sales$1,275,800$1,483,500$1,096,300Credit purchases765,480890,160657,780Cash disbursementsWages , taxes and expenses348,600395,620337,150Interest29,90029,90029,900Equipment0158,90096,300Credit sales collectionCollected in month of sale35%Collected month after sale60%Never Collected5%June Credit sales$1,135,020June Credit purchases$681,012Beginning Cash balance $425,000All credit purchases are paid in the following month after the purchase.Instructions:a) Using the above information, complete the following cash budget. (15 points)JulyAugustSeptemberBeginning cash balanceCash receipts:Cash collections from credit salesTotal cash availableCash disbursements:Payments for purchasesWages, taxes, and expensesInterestEquipment purchasesTotal cash...
Soprano Co. is in the process of preparing the second quarter budget for 2016, and the...
Soprano Co. is in the process of preparing the second quarter budget for 2016, and the following data have been assembled: The company sells a single product at a selling price of $43 per unit. The estimated sales volume for the next six months is as follows: March 6,100 units June 8,000 units April 7,000 units July 9,300 units May 10,400 units August 6,400 units All sales are on account. The company's collection experience has been that 43% of a...
The first budget is to be for the second quarter of the current year (April, May...
The first budget is to be for the second quarter of the current year (April, May and June). To assist in developing the budget figures, the divisional controller has accumulated the following information. Sales: Sales through the first three months of the current year were 30,000 units. Actual sales in units for January, February, and March, and planned sales in units over the next five months, are given below: January (actual) 6,000 February (actual) 10,000 March (actual) 14,000 April (planned)...
The first budget is to be for the second quarter of the current year (April, May...
The first budget is to be for the second quarter of the current year (April, May and June). To assist in developing the budget figures, the divisional controller has accumulated the following information. Sales: Sales through the first three months of the current year were 30,000 units. Actual sales in units for January, February, and March, and planned sales in units over the next five months, are given below: January (actual) 6,000 February (actual) 10,000 March (actual) 14,000 April (planned)...
Here are some test scores from eight students in a class such as yours: Second Test...
Here are some test scores from eight students in a class such as yours: Second Test Score: 158, 162, 144, 162, 136, 158, 175, 153 First Test Score: 145, 140, 145, 170, 145, 175, 170, 160 A.) Pick an explanatory variable, and explain your choice B.) Using this data make a scatter plot C.) Find the correlation, and graph the line of best fit on the scatter plot
5) Presented is selected second quarter budget data for the Arnold Company
5) Presented is selected second quarter budget data for the Arnold CompanySalesApril20,000 unitsMay30,000 unitsJune36,000 unitsAdditional information:- Each unit of finished product requires three pounds of raw materials.- Arnold maintains ending finishing goods inventories equal to 20% of the following month's budgeted sales.- Arnold maintains raw materials inventories equal to 25% of the following month's budgeted production.- April 1 inventories are in line with Arnold's inventory policy.Arnold's budgeted purchases (in pounds) for April is:a) 66,000 poundsb) 72,900 poundsc) 89,400 poundsd) None...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT