Question
In: Accounting
Shanghai Enterprises has asked for your assistance in preparing a cash budget for the month of...
Shanghai Enterprises has asked for your assistance in preparing a cash budget for the month of December 2020 and has provided projected sales revenue data below:
Projected sales: October 2020 $144,000
November 2020 $205,000
December 2020 $220,000
All sales are on credit with 65% collected during the month of sale, 18% collected during the month following the sale, 15% during the second month after the sale and 2% uncollectable.
Required:
a) Prepare the cash receipts section of a cash budget for Shanghai Enterprises for the month of December 2020.
b) Explain how Shanghai Enterprises would go about constructing a cash budget for the first three months of 2021. Note that Shanghai plans to purchase a major piece of equipment costing $500,000 in February 2021.
Please solve a and b both as I need help in both the sections. Thanks for the help:)
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Shanghai Enterprises has asked for your assistance in preparing a cash budget for the month of...
Shanghai Enterprises has asked for your assistance in preparing
a cash budget for the month
of December 2020 and has provided projected sales revenue data
below
Projected sales:
October 2020
$144,000
November 2020
$205,000
December 2020
$220,000
All sales are on credit with 65% collected during the month of
sale, 18% collected during the
month following the sale, 15% during the second month after the
sale and 2% uncollectable.
Required:
a) Prepare the cash receipts section of a cash budget...
ABC Enterprises has asked for your assistance in preparing a cash budget for the month of...
ABC Enterprises has asked for your assistance in preparing a
cash budget for the month of December 2020 and has provided
projected sales revenue data below:
Projected sales:
October 2020
$144,000
November 2020
$205,000
December 2020
$220,000
All sales are on credit with 65% collected during the month of
sale, 18% collected during the month following the sale, 15% during
the second month after the sale and 2% uncollectable. Required:
a) Prepare the cash receipts section of a cash budget...
Tracy is preparing her budget for next year and needs your assistance. Now that she has...
Tracy is preparing her budget for next year and needs your
assistance. Now that she has a better idea of what to expect now
that she is in business full time, we want to begin having some of
her ingredients in stock to avoid not being able to get the
ingredients on time.
She is ready to prepare her budget for the first four months of
2021. She believes she will sell the following number of cupcakes
each month:
Month...
Tracy is preparing her budget for next year and needs your assistance. Now that she has...
Tracy is preparing her budget for next year and needs your
assistance. Now that she has a better idea of what to expect now
that she is in business full time, we want to begin having some of
her ingredients in stock to avoid not being able to get the
ingredients on time.
She is ready to prepare her budget for the first four months of
2021. She believes she will sell the following number of cupcakes
each month:
Month...
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%...
Papst Company is preparing its cash budget for the month of May. The following information is...
Papst Company is preparing its cash budget for the month of May.
The following information is available concerning its accounts
receivable (based on sales made to customers on open account):
Actual credit sales for March
$
130,000
Actual credit sales for April
$
160,000
Estimated credit sales for May
$
210,000
Estimated collections in the month of sale
25
%
Estimated collections in the first month after the month of
sale
60
%
Estimated collections in the second month after...
Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October:...
Preparing a Cash Budget
La Famiglia Pizzeria provided the following information for the
month of October:
Sales are budgeted to be $167,000. About 85% of sales is cash;
the remainder is on account.
La Famiglia expects that, on average, 70% of credit sales will
be paid in the month of sale, and 28% will be paid in the following
month.
Food and supplies purchases, all on account, are expected to be
$102,000. La Famiglia pays 25% in the month of...
Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October:...
Preparing a Cash Budget
La Famiglia Pizzeria provided the following information for the
month of October:
Sales are budgeted to be $161,000. About 85% of sales is cash;
the remainder is on account.
La Famiglia expects that, on average, 70% of credit sales will
be paid in the month of sale, and 28% will be paid in the following
month.
Food and supplies purchases, all on account, are expected to be
$113,000. La Famiglia pays 25% in the month of...
Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October:...
Preparing a Cash Budget
La Famiglia Pizzeria provided the following information for the
month of October:
Sales are budgeted to be $153,000. About 85% of sales is cash;
the remainder is on account.
La Famiglia expects that, on average, 70% of credit sales will
be paid in the month of sale, and 28% will be paid in the following
month.
Food and supplies purchases, all on account, are expected to be
$101,000. La Famiglia pays 25% in the month of...
Preparing a Cash Budget La Famiglia Pizzeria provided the following information for the month of October:...
Preparing a Cash Budget
La Famiglia Pizzeria provided the following information for the
month of October:
Sales are budgeted to be $162,000. About 85% of sales is cash;
the remainder is on account.
La Famiglia expects that, on average, 70% of credit sales will
be paid in the month of sale, and 28% will be paid in the following
month.
Food and supplies purchases, all on account, are expected to be
$103,000. La Famiglia pays 25% in the month of...
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