Question

In: Finance

Cash Budget - The following information applies to Company A: Jan. Feb. Mar. Apr. Miscellanous cash...

Cash Budget - The following information applies to Company A:

Jan. Feb. Mar. Apr.
Miscellanous cash payments $25,000 $30,000 $22,000 $32,000
Nov. Dec. Jan. Feb. Mar. Apr.
Sales $200,000 $325,000 $250,000 $240,000 $260,000 $270,000

Assume Company A collects 20% of its sales in the month of the sale, 50% the next month, 25% the following month, and 5% is never collected.

Dec. Jan. Feb. Mar. Apr.
Purchases $210,000 $150,000 $170,000 $180,000 $190,000

Assume Company A makes cash payments of 40% o fits purchases in the month of the purchase and pays the remaining 60% the following month.

(QUESTION 1) Use the above information, to construct a cash budget for Company A for January through April. Company A began January with a cash balance of $100,000. (Include formulas used to solve problem).

Cash Budget - The following information applies to Company B:

Jan Feb Mar Apr
Miscellaneous cash payments $15,000 $18,000 $27,000 $29,000
Nov. Dec. Jan. Feb. Mar. Apr.
Sales $440,000 $500,000 $450,000 $480,000 $500,000 $430,000

Assume Company B collects 35% of its sales in the month of the sale, 40% the next month, 15% the following month, adn 10% is never collected.

Dec. Jan. Feb. Mar. Apr.
Purchases $350,000 $310,000 $330,000 $340,000 $300,000

Assume Company B makes cash payments of 35% of its purchases in the month of the purchase and pays the remaining 65% the following month.

(QUESTION 2) Use the above information, to consutruct a cash budget for Company B for January through April. Company B began January with a cash balance of $65,000. (Include formulas used to solve problem).

Solutions

Expert Solution

I have uploaded the solution showing formulas in excel. Please apply the formulas to arrive at the answer. Also I have shown the answer in the image separately.


Related Solutions

Finish the following Cash Budget CASH BUDGET JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT...
Finish the following Cash Budget CASH BUDGET JAN FEB MAR APRIL MAY JUNE JULY AUG SEPT OCT NOV DEC SALES 200,000 230,000 150000 210,000.00 220,000.00 170,000.00 160,000.00 150,000.00 180,000.00 210,000.00 220,000.00 210,000.00 COLLECTIONS: No cash Sales 30 days 50% 60 days 50% TOTAL CASH RECEIPTS CASH DISBURSEMENTS SUPPLIES 70% PAYABLES/SUPPLIES paid next month(in 30 days) SALARIES/OVER monthly 40000 INTEREST monthly 1000 DIVIDENDS monthly 1000 TAXES quarterly 1200 TOTAL DISBURSEMENT 42000 0 1200 0 0 0 0 0 0 0 0...
Presented below is information related to Bridgeport Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30...
Presented below is information related to Bridgeport Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost $17,550 $17,667 $19,890 $16,380 Inventory at LCNRV 16,965 14,742 18,252 15,561 Purchases for the month 19,890 28,080 31,005 Sales for the month 33,930 40,950 46,800 Partially correct answer. Your answer is partially correct. Try again. From the information, prepare (as far as the data permit) monthly income statements in columnar form for February, March, and April. The inventory is to be...
Presented below is information related to Vaughn Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30...
Presented below is information related to Vaughn Enterprises. Jan. 31 Feb. 28 Mar. 31 Apr. 30 Inventory at cost $17,250 $17,365 $19,550 $16,100 Inventory at LCNRV 16,675 14,490 17,940 15,295 Purchases for the month 19,550 27,600 30,475 Sales for the month 33,350 40,250 46,000 (a) New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct. From the information, prepare (as far as the data permit) monthly income statements in columnar...
Cash Disbursements Budget - Company A reports the following purchases and payments information: Dec. Jan. Feb....
Cash Disbursements Budget - Company A reports the following purchases and payments information: Dec. Jan. Feb. Mar. Apr. Purchases . . . $210,000 $150,000 $170,000 $180,000 $190,000 (a) Assume Company A makes cash payments of 40% of its purchases in the month of the purchase and pays the remaining 60% the following month. Compute the company's cash payments for each month from January through April. (Include formulas used to solve problem). Cash Disbursements Budget - Company B reports the following...
Dynamic Futon forecasts the following purchases from suppliers: Jan. Feb. Mar. Apr. May Jun. Value of...
Dynamic Futon forecasts the following purchases from suppliers: Jan. Feb. Mar. Apr. May Jun. Value of goods ($ millions) 32 28 25 22 20 20 a. Forty percent of goods are supplied cash-on-delivery. The remainder are paid with an average delay of one month. If Dynamic Futon starts the year with payables of $22 million, what is the forecasted level of payables for each month? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)...
Tesla’s monthly returns during 2019 is the following: Jan: 0.042, Feb: -0.125, Mar: -0.147, Apr: -0.224,...
Tesla’s monthly returns during 2019 is the following: Jan: 0.042, Feb: -0.125, Mar: -0.147, Apr: -0.224, May: 0.207, Jun: 0.081, Jul: -0.066, Aug: 0.068, Sep: 0.307, Oct: 0.048, Nov: 0.267, Dec: 0.56. The risk-free rate for 2019 was 1.84%. What was Tesla’s risk premium during 2019?
ASAP!!!!!!!!! The monthly sales for Yazici​ Batteries, Inc., were as​ follows:                                                                                                                                         Month Jan Feb Mar Apr...
ASAP!!!!!!!!! The monthly sales for Yazici​ Batteries, Inc., were as​ follows:                                                                                                                                         Month Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Sales 21 21 15 15 11 18 16 18 19 20 23 22 This exercise contains only parts b and c. ​b) The forecast for the next month​ (Jan) using the naive method​ = 22 sales ​(round your response to a whole​ number). The forecast for the next period​ (Jan) using a​ 3-month moving average approach​...
AVERAGE EMPLOYMENT LEVELS FOR SEAT OF KNOWLEDGE    jan feb mar apr may jun jul aug...
AVERAGE EMPLOYMENT LEVELS FOR SEAT OF KNOWLEDGE    jan feb mar apr may jun jul aug sep oct nov dec machine/fabricating 47 47 50 49 51 51 52 51 51 50 52 53 shipping/recieving 24 23 25 25 25 23 24 24 24 24 24 24 welding 30 31 34 34 33 32 32 33 33 38 43 43 paint/assembly 26 30 30 30 29 36 34 33 36 37 36 35 TURNOVER Date            Department Reason 04/12                Machining/Fabricating               Other...
Consider the following data: Monthly Profit of an Auto Repair Shop Month Jan-14 Feb-14 Mar-14 Apr-14...
Consider the following data: Monthly Profit of an Auto Repair Shop Month Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Profit ($) 17,123 17,273 16,055 18,138 19,763 17,310 19,131 18,578 20,373 Step 1 of 4 :   Determine the three-period moving average for the next time period. If necessary, round your answer to one decimal place. Step 2 of 4 :   Determine the three-period weighted moving average for the next time period with weights of 3 (most recent), 2 (second...
Month Sales (2005) Sales (2006) Jan 5 21 Feb 8 20 Mar 10 29 Apr 18...
Month Sales (2005) Sales (2006) Jan 5 21 Feb 8 20 Mar 10 29 Apr 18 32 May 26 44 Jun 35 58 Jul 28 46 Aug 20 32 Sep 14 27 Oct 8 13 Nov 6 11 Dec 26 52 a.Plot the data using Minitab. What kind of pattern do you observe? b.Develop a trend line equation for this data (Use Minitab). c.Decompose the above time series using a multiplicative model. Store the trend line, detrended data, seasonals, seasonally...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT