Question

In: Accounting

Bagus Industri Bhd. is preparing a cash budget for the second quarter of 2008. The following...

Bagus Industri Bhd. is preparing a cash budget for the second quarter of 2008. The following are its sales figures:

ACTUAL SALES (RM) YEAR 2008                         FORECASTED SALES (RM) YEAR 2008                                                               

January                       160,000                                   April                 225,000

February                     140,000                                   May                 250,000

March                          190,000                                   June                210,000

July                   220,000

a) The company collects 30 percent of its sales in the month of the sale, 30 percent in the month following the sale, and the remaining 40 percent two months following the sale.

b) Purchases of raw material are 75 percent of the month sales and are made one month in advance of the expected sale.

c) Payments for purchases are made in the month of sales.

d) A new machine will be installed and paid in May. The price is RM30.000

e) Insurance payments of RM10,000 are made at the end of each quarter.

f) Fixed monthly expenses are:

    Rent - RM12,000

    Utilities - RM20.000

    Depreciation - RM 7,500

g) Tax payments of RM26.500 are made at the beginning of each quarter.

h) Dividends of RM30.000 will be received in May.

i) Ending cash balance for March is RM38.500.Minimum cash balance of RM25.000 must be maintained at all times.

From the information provided above, prepare a cash budget for the second quarter. ( 20 Mark)

Solutions

Expert Solution

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The...
Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted: April May Sales ………………………………………………………… $150,000 $157,500 Merchandise purchases …………………………… 107,000 112,400 Operating expenses: Payroll ………………………………………………… 13,600 14,280 Advertising ………………………………………….. 5,400 5,700 Rent …………………………………………………….. 2,500 2,500 Depreciation ………………………………………… 7,500 7,500 End of April balances: Cash ……………………………………………………… 30,000 Bank loan payable ………………………………… 26,000 Additional data: (1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50%...
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 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....
2. Sportz Corporation is preparing its budget for the second quarter of the calendar year. The...
2. Sportz Corporation is preparing its budget for the second quarter of the calendar year. The following monthly sales data (in units) have been forecasted: April 45,000 May 48,000 June 54,000 July 60,000 August 75,000 Additional information: • Desired ending inventory each month—Finished goods: 25% of next month's sales. • Desired ending inventory each month—Raw materials: 20% of next month's production needs • Number of raw material units required per unit of finished product: 5 @ $4 Required: Prepare a...
Bench Corporation is a merchandising company that is preparing a cash budget for the third quarter....
Bench Corporation is a merchandising company that is preparing a cash budget for the third quarter. They have the following budget information available.   1. Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000. Accounts receivable from June sales are $136,000. All sales are on credit and collected 35% in the month of sale and 65% in the month following sale. 2. Inventory purchases for July, August, and September are budgeted as $129,600, $136,200, and...
Bench Corporation is a merchandising company that is preparing a cash budget for the third quarter....
Bench Corporation is a merchandising company that is preparing a cash budget for the third quarter. They have the following budget information available.   1. Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000. Accounts receivable from June sales are $136,000. All sales are on credit and collected 35% in the month of sale and 65% in the month following sale. 2. Inventory purchases for July, August, and September are budgeted as $129,600, $136,200, and...
Bench Corporation is a merchandising company that is preparing a cash budget for the third quarter....
Bench Corporation is a merchandising company that is preparing a cash budget for the third quarter. They have the following budget information available.   1. Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000. Accounts receivable from June sales are $136,000. All sales are on credit and collected 35% in the month of sale and 65% in the month following sale. 2. Inventory purchases for July, August, and September are budgeted as $129,600, $136,200, and...
A company is preparing their 4th quarter cash summary budget. Based on their beginning cash balance...
A company is preparing their 4th quarter cash summary budget. Based on their beginning cash balance and anticipated cash receipts and cash disbursements (payments), here are the ending cash balances initially planned each month.  The balances shown below are BEFORE any borrowing of money or repayment of loans and interest. Management wants to keep a minimum cash balance of $20,922. Therefore, they will clearly need to borrow money in November. Luckily, December looks like a good month and they will have...
Exercise 20-32A Merchandising: Cash budget LO P4 Kelsey is preparing its master budget for the quarter...
Exercise 20-32A Merchandising: Cash budget LO P4 Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow. Budgeted July August September Sales $ 63,200 $ 80,800 $ 48,800 Cash payments for merchandise 42,000 32,800 33,600 Sales are 20% cash and 80% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $13,100 in cash;...
Exercise 20-32A Merchandising: Cash budget LO P4 Kelsey is preparing its master budget for the quarter...
Exercise 20-32A Merchandising: Cash budget LO P4 Kelsey is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for merchandise for the next three months follow: Budgeted July August September Sales $ 63,500 $ 80,500 $ 48,500 Cash payments for merchandise 41,400 33,100 33,900 Sales are 15% cash and 85% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $12,800 in cash;...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT