Question
In: Accounting
Cross Co is preparing a cash budget for July. The following estimates were made : a....
Cross Co is preparing a cash budget for July. The following estimates were made :
a. expected cash balance , July 1, $5,000.
b. income tax rate is 40%, based on accounting infomce for the month, payable in the following month.
c. Cross Co's customers pay for 50% of their purchases during the month of purchases and the balance during the following month . Bad debt expected to be 2%.
d. merchandise is purchased on account for resale, with 25% of purchases paid for during the month of purchase and the balance paid during the following month.
e. marketing and administrative expenses are all paid in the current month.
f. dividends of $15,000 are expected to be declared and paid during JUly.
g. Cross Co's desire is to have a minimum month end cash balance of $5,000.
h. other budget include the following estimates :
June July
sales (all on account). $30,000 $40,000
purchases $10,000 $15,000
depreciation for marketing and administrative $5,000 $6,000
cost of goods sold $12,000 $16,000
other marketing and administrative expenses $9,000 $10,000
Solutions
ekkarill92 answered 2 years agoRelated Solutions
The Fortunate Co. is preparing a cash budget for the 2nd quarter. The following information is...
The Fortunate Co. is preparing a cash budget for the 2nd
quarter. The following information is available:
Projected cash sales: $10,000 each month
Projected credit sales: $ 8,000 each month
One half of the credit sales are collected in the month of sale,
and the remainder collected in the following month (there are no
uncollectible accounts).
Accounts receivable on April 1st were $3,000.
Operating expenses (paid in cash): $20,000 for April, and
$13,000 for each of the following two months....
Use the following information to prepare the July cash budget for Acco Co. It should show...
Use the following information to prepare the July cash budget
for Acco Co. It should show expected cash receipts and cash
payments for the month and the cash balance expected on July
31.
Beginning cash balance on July 1: $68,000.
Cash receipts from sales: 20% is collected in the month of
sale, 50% in the next month, and 30% in the second month after sale
(uncollectible accounts are negligible and can be ignored). Sales
amounts are May (actual), $1,800,000; June...
Use the following information to prepare the July cash budget for Acco Co. It should show...
Use the following information to prepare the July cash budget
for Acco Co. It should show expected cash receipts and cash
payments for the month and the cash balance expected on July 31.
Beginning cash balance on July 1: $66,000. Cash receipts from
sales: 25% is collected in the month of sale, 50% in the next
month, and 25% in the second month after sale (uncollectible
accounts are negligible and can be ignored). Sales amounts are May
(actual), $1,950,000; June...
Use the following information to prepare the July cash budget for Anker Co. It should show...
Use the following information to prepare the July cash budget
for Anker Co. It should show expected cash receipts and cash
disbursements for the month and the cash balance expected on July
31.
a. Beginning cash balance on July 1: $63,000.
b. Cash receipts from sales: 30% is collected in the month of
sale, 50% in the next month, and 20% in the second month after sale
(uncollectible accounts are negligible and can be ignored). Sales
amounts are: May (actual),...
The ABC Company has made the following monthly estimates of cash receipts and cash disbursements when...
The ABC Company has made the following monthly estimates of cash
receipts and cash disbursements when preparing cash budgets for the
next twelve months. ABC has beginning cash on hand of $25,000 and
wants to maintain this minimum cash level throughout the next year.
Cash Cash Month Receipts Disbursements January $100,000 $110,000
February $90,000 $110,000 March $95,000 $115,000 April $100,000
$150,000 May $130,000 $180,000 June $160,000 $180,000 July $200,000
$190,000 August $245,000 $180,000 September $245,000 $150,000
October $180,000 $120,000 November...
Millen Corporation is a merchandiser that is preparing a master budget for the month of July....
Millen Corporation is a merchandiser that is preparing a master
budget for the month of July. The company’s balance sheet as of
June 30th is shown below:
Millen Corporation
Balance Sheet
June 30
Assets
Cash
$
120,000
Accounts receivable
166,000
Inventory
37,200
Plant and equipment, net of depreciation
554,800
Total assets
$
878,000
Liabilities and Stockholders’ Equity
Accounts payable
$
93,000
Common stock
586,000
Retained earnings
199,000
Total liabilities and stockholders’ equity
$
878,000
Millen’s managers have made the following...
Wolfpack Company is a merchandising company that is preparing a budget for the month of July....
Wolfpack Company is a
merchandising company that is preparing a budget for the month of
July. It has provided the following information:
Wolfpack Company
Balance Sheet
June 30
Assets
Cash
$
75,000
Accounts
receivable
58,600
Inventory
43,000
Buildings and
equipment, net of depreciation
205,000
Total
assets
$
381,600
Liabilities and Stockholders’ Equity
Accounts
payable
$
68,600
Common
stock
100,000
Retained
earnings
213,000
Total
liabilities and stockholders’ equity
$
381,600
Budgeting
Assumptions:
All sales are on account. Thirty percent of the...
Millen Corporation is a merchandiser that is preparing a master budget for the month of July....
Millen Corporation is a merchandiser that is preparing a master
budget for the month of July. The company’s balance sheet as of
June 30th is shown below:
Millen Corporation
Balance Sheet
June 30
Assets
Cash $ 120,000
Accounts receivable 166,000
Inventory 37,200
Plant and equipment, net of depreciation 554,800
Total assets $ 878,000
Liabilities and Stockholders’ Equity
Accounts payable $ 93,000
Common stock 586,000
Retained earnings 199,000
Total liabilities and stockholders’ equity $ 878,000
Millen’s managers have made the following...
Wolfpack Company is a merchandising company that is preparing a budget for the month of July....
Wolfpack Company is a merchandising company that is preparing a
budget for the month of July. It has provided the following
information: Wolfpack Company Balance Sheet June 30 Assets Cash $
77,000 Accounts receivable 58,200 Inventory 32,800 Buildings and
equipment, net of depreciation 186,000 Total assets $ 354,000
Liabilities and Stockholders’ Equity Accounts payable $ 39,000
Common stock 100,000 Retained earnings 215,000 Total liabilities
and stockholders’ equity $ 354,000
Budgeting Assumptions:
All sales are on account. Thirty percent of the...
Wolfpack Company is a merchandising company that is preparing a budget for the month of July....
Wolfpack Company is a merchandising company that is preparing a
budget for the month of July. It has provided the following
information:
Wolfpack Company
Balance Sheet
June 30
Assets
Cash
$
91,400
Accounts receivable
67,200
Inventory
31,000
Buildings and equipment, net of
depreciation
165,000
Total assets
$
354,600
Liabilities and
Stockholders’ Equity
Accounts payable
$
62,600
Common stock
100,000
Retained earnings
192,000
Total liabilities and
stockholders’ equity
$
354,600
Budgeting Assumptions:
1. All sales are on account. Thirty percent of...
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