In: Accounting
Following information relates to Acco Co.
Additional Information:
Prepare a budgeted income statement for the month of July and a
budgeted balance sheet for July 31.
There was a second part to my original question Prepare a budgeted income statement for the month of July and a budgeted balance sheet for July 31.
Collection of Cash receipts from sales | |||||
collected in | |||||
Credit sales from | July 31 | ||||
Total Sales | May | June | July | Accounts Receivable | |
May | 15,48,000 | 3,71,520 | 7,74,000 | 4,02,480 | |
June | 10,80,000 | 2,59,200 | 5,40,000 | 2,80,800 | |
July | 12,60,000 | 3,02,400 | 9,57,600 | ||
Total | 38,88,000 | 3,71,520 | 10,33,200 | 12,44,880 | 12,38,400 |
Collection of Cash Payments for merchandise | |||||
Paid in | |||||
Purchases from | July 31 | ||||
Total Purchases | June | July | Accounts Payable | ||
June | 3,87,000 | 1,85,760 | 2,01,240 | - | |
July | 6,00,000 | 2,88,000 | 3,12,000 | ||
9,87,000 | 1,85,760 | 4,89,240 | 3,12,000 | ||
ACCO COMPANY | |||||
Budgeted Income Statement | |||||
For the Month ended July 31 | |||||
Sales | 12,60,000 | ||||
Cost of Goods Sold | 4,41,000 | ||||
Gross Profit | 8,19,000 | ||||
Operating Expenses | |||||
Salary | 1,80,900 | ||||
(189900-9000) | |||||
Depreciation | 10,800 | ||||
Other Cash Expenses | 1,35,000 | ||||
Bank Loan Interest | 5,940 | ||||
Total Operating Expenses | 3,32,640 | ||||
Income Before Taxes | 4,86,360 | ||||
Income Tax(40%) | 1,94,544 | ||||
Net Income | 2,91,816 | ||||
ACCO COMPANY | |||||
Budgeted Balance Sheet | |||||
As on 31st July | |||||
Asset | |||||
Cash Balances(Balancing Figure) | |||||
(3036400-2646600) | 3,89,800 | ||||
Accounts Receivable | 12,38,400 | ||||
Inventory | 2,31,000 | ||||
Total Current Asset | 18,59,200 | ||||
Equipment | 14,40,000 | ||||
Accumulated Depreciation | 2,62,800 | ||||
(252000+10800) | |||||
Equipment Net | 11,77,200 | ||||
Total Asset | 30,36,400 | ||||
Liablities and Equity | |||||
Liabilities | |||||
Accounts Payable | 3,12,000 | ||||
Salary Payable | 36,000 | ||||
Income Tax Payable | 1,94,544 | ||||
Total Current Liablity | 5,42,544 | ||||
Bank Loan Payable |
Related SolutionsFollowing information relates to Acco Co. Beginning cash balance on July 1: $45,000. Cash receipts from...Following information relates to Acco Co.
Beginning cash balance on July 1: $45,000.
Cash receipts from sales: 21% is collected in the month of
sale, 50% in the next month, and 29% in the second month after sale
(uncollectible accounts are negligible and can be ignored). Sales
amounts are: May (actual), $1,548,000; June (actual), $1,080,000;
and July (budgeted), $1,260,000.
Payments on merchandise purchases: 42% in the month of purchase
and 58% in the month following purchase. Purchases amounts are:
June...
Following information relates to Acco Co. Beginning cash balance on July 1: $35,000. Cash receipts from...Following information relates to Acco Co.
Beginning cash balance on July 1: $35,000.
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), $1,204,000; June (actual), $840,000; and
July (budgeted), $980,000.
Payments on merchandise purchases: 60% in the month of purchase
and 40% in the month following purchase. Purchases amounts are:
June...
Following information relates to Acco Co. Beginning cash balance on July 1: $35,000. Cash receipts from...Following information relates to Acco Co. Beginning cash balance
on July 1: $35,000. Cash receipts from sales: 27% is collected in
the month of sale, 50% in the next month, and 23% in the second
month after sale (uncollectible accounts are negligible and can be
ignored). Sales amounts are: May (actual), $1,204,000; June
(actual), $840,000; and July (budgeted), $980,000. Payments on
merchandise purchases: 54% in the month of purchase and 46% in the
month following purchase. Purchases amounts are: 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: $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...
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments...Kayak Co. budgeted the following cash receipts (excluding cash
receipts from loans received) and cash payments (excluding cash
payments for loan principal and interest payments) for the first
three months of next year.
Cash
Receipts
Cash
payments
January
$
522,000
$
466,600
February
411,500
356,100
March
472,000
529,000
According to a credit agreement with its bank, Kayak requires a
minimum cash balance of $50,000 at each month-end. In return, the
bank has agreed that the company can borrow up to...
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments...Kayak Co. budgeted the following cash receipts (excluding cash
receipts from loans received) and cash payments (excluding cash
payments for loan principal and interest payments) for the first
three months of next year.
Cash
Receipts
Cash
payments
January
$
523,000
$
465,400
February
405,500
347,900
March
469,000
533,000
According to a credit agreement with its bank, Kayak requires a
minimum cash balance of $40,000 at each month-end. In return, the
bank has agreed that the company can borrow up to...
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments...Kayak Co. budgeted the following cash receipts (excluding cash
receipts from loans received) and cash payments (excluding cash
payments for loan principal and interest payments) for the first
three months of next year. Cash Receipts Cash payments January $
525,000 $ 475,000 February 400,000 350,000 March 450,000 525,000
According to a credit agreement with the company’s bank, Kayak
promises to have a minimum cash balance of $30,000 at each
month-end. In return, the bank has agreed that the company can...
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments...Kayak Co. budgeted the following cash receipts (excluding cash
receipts from loans received) and cash payments (excluding cash
payments for loan principal and interest payments) for the first
three months of next year.
Cash
Receipts
Cash
payments
January
$
524,000
$
469,700
February
406,500
352,200
March
475,000
529,000
According to a credit agreement with the company’s bank, Kayak
promises to have a minimum cash balance of $40,000 at each
month-end. In return, the bank has agreed that the company can...
Kayak Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments...Kayak Co. budgeted the following cash receipts (excluding cash
receipts from loans received) and cash payments (excluding cash
payments for loan principal and interest payments) for the first
three months of next year.
Cash
Receipts
Cash
payments
January
$
525,000
$
468,500
February
410,000
353,500
March
482,000
524,000
According to a credit agreement with the company’s bank, Kayak
promises to have a minimum cash balance of $40,000 at each
month-end. In return, the bank has agreed that the company can...
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