Question
In: Accounting
Consider the following third-quarter budget data for TAP & Brothers: TAP & Brothers Third-Quarter Budget Data...
Consider the following third-quarter budget data for TAP & Brothers: TAP & Brothers Third-Quarter Budget Data July August September Credit Sales 254958 266136 282816 Credit Purchases 97321 115536 137343 Wages, Taxes, and Expenses 26176 31560 33787 Interest 7124 7595 7934 Equipment Purchases 54316 61677 0 The company predicts that 4% of its credit sales will never be collected, 30% of its sales will be collected in the month of the sale, and the remaining 66% will be collected in the following month. Credit purchases will be paid in the month following the purchase. In June, credit sales were $138199, and credit purchases were $102519 July’s beginning cash is $184438 If TAP maintains a policy of always keeping a minimum cash balance of $75,000 as a buffer against uncertainty and forecasting errors, what is the cash surplus/deficit at the end of the quarter (i.e., end of September)? (Answer surplus as a positive number or deficit as a negative number. Round answer to 0 decimal places. Do not round intermediate calculations) Topic: Cash Budget
Please post with formulas for the cells
Solutions
Expert Solution
| Collection from sales | ||||||||
| June | July | Aug | Sep | |||||
| Credit Sales | $138,199.00 | $254,958.00 | $266,136.00 | $282,816.00 | ||||
| Formula | ||||||||
| Collection @ 66% in the following month | $91211.34 | $168272.3 | $175649.8 | C9*66% | D9*66% | E9*66% | ||
| Collection @ 30% in the current Month | $76487.4 | $79840.8 | $84844.8 | D9*30% | E9*30% | F9*30% | ||
| Total Collections | $167698.7 | $248113.1 | $260494.6 | |||||
| june | July | Aug | Sep | |||||
| Credit Purchases | $102,519.00 | $97,321.00 | $115,536.00 | $137,343.00 | ||||
| Payment in the following month | $102,519.00 | $97,321.00 | $115,536.00 | |||||
| Cash Budget | ||||||||
| for the third quarter 30th September | ||||||||
| July | August | September | ||||||
| Receipts | ||||||||
| Sales-Accounts Receivable | $167698.7 | $248113.1 | $260494.6 | |||||
| Total Receipts | $167698.7 | $248113.1 | $260494.6 | |||||
| Payments | ||||||||
| Wages ,taxes and expenses | $26,176.00 | $31,560.00 | $33,787.00 | |||||
| Interest | $7,124.00 | $7,595.00 | $7,934.00 | |||||
| Equipment Purchase | $54,316.00 | $61,677.00 | $0.00 | |||||
| Purchase-Accounts Payable | $102,519.00 | $97,321.00 | $115,536.00 | |||||
| Total Payments | $190,135.00 | $198,153.00 | $157,257.00 | |||||
| Opening Cash Balance | $184,438.00 | $162001.7 | $211961.8 | |||||
| Net Cash-(Total Receipts-Total Payments) | ($22436.26) | $49960.08 | $92,817.78 | |||||
| Closing Balance-Cash Surplus | $162001.7 | $211961.8 | $304779.6 | |||||
| Since the Opening Cash Balance is more than the buffer cash balance of $75000 all the cash balances are having surplus | ||||||||
ekkarill92 answered 1 year agoRelated Solutions
Consider the following third-quarter budget data for TAP & Brothers: TAP & Brothers Third-Quarter Budget Data...
Consider the following third-quarter budget data for TAP &
Brothers:
TAP & Brothers Third-Quarter Budget Data
July
August
September
Credit Sales
258941
265299
284380
Credit Purchases
97804
116018
135024
Wages, Taxes, and Expenses
26612
31353
33454
Interest
7193
7571
8062
Equipment Purchases
54213
61494
0
The company predicts that 4% of its credit sales will never be
collected, 30% of its sales will be collected in the month of the
sale, and the remaining 66% will be collected in the...
Consider the following third-quarter budget data for TAP & Brothers: TAP & Brothers Third-Quarter Budget Data...
Consider the following third-quarter budget data for TAP &
Brothers:
TAP & Brothers Third-Quarter Budget Data
July
August
September
Credit Sales
254849
266370
281008
Credit Purchases
97712
113113
131293
Wages, Taxes, and Expenses
26632
31305
33401
Interest
7166
7522
7997
Equipment Purchases
54127
61180
0
The company predicts that 4% of its credit sales will never be
collected, 30% of its sales will be collected in the month of the
sale, and the remaining 66% will be collected in the...
Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of...
Colerain Corporation is a merchandising company that is
preparing a budget for the third quarter of the calendar year. The
company’s balance sheet as of June 30 is shown below:
COLERAIN CORPORATION
Balance Sheet
June 30
Assets
Cash
$ 88,000
Accounts receivable
134,000
Inventory
60,000
Plant and equipment, net of depreciation
280,000
Total assets
$ 562,000
Liabilities and Shareholders’ Equity
Accounts payable
$ 69,000
Common shares
380,000
Retained earnings
113,000
Total liabilities and shareholders’ equity
$ 562,000
Colerain’s managers have...
Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of...
Colerain Corporation is a merchandising company that is
preparing a budget for the third quarter of the calendar year. The
company’s balance sheet as of June 30 is shown below:
COLERAIN CORPORATION
Balance Sheet
June 30
Assets
Cash
$
100,000
Accounts
receivable
146,000
Inventory
72,000
Plant and equipment,
net of depreciation
400,000
Total assets
$ 718,000
Liabilities and Stockholders’ Equity
Accounts
payable
$
81,000
Common shares
500,000
Retained
earnings
137,000
Total liabilities
and stockholders’ equity
$ 718,000
Colerain’s managers have...
Colerain Corporation is a merchandising company that is preparing a budget for the third quarter of...
Colerain Corporation is a merchandising company that is
preparing a budget for the third quarter of the calendar year. The
company’s balance sheet as of June 30 is shown below:
COLERAIN CORPORATION
Balance Sheet
June 30
Assets
Cash
$ 95,000
Accounts receivable
141,000
Inventory
67,000
Plant and equipment, net of depreciation
350,000
Total assets
$ 653,000
Liabilities and Shareholders’ Equity
Accounts payable
$ 76,000
Common shares
450,000
Retained earnings
127,000
Total liabilities and shareholders’ equity
$ 653,000
Colerain’s managers have...
Company A is preparing its budget for the third quarter. The following information has been compiled:...
Company A is preparing its budget for the third quarter. The
following information has been compiled:
Cash collections $50,000 $40,000 $48,000
Cash payments
Purchases of
inventory 31,000 22,000 18,000
Operating
expenses 12,000 9,000 11,600
Capital
expenditures 13,000 25,000 0
The cash balance at the end of the second quarter is projected
to be $4,000. The company is required to maintain cash balance of
$5,000 and is authorized to borrow at the end of each month to make
up any shortfalls....
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
Beech Corporation is a merchandising company that is preparing a
master budget for the third quarter of the calendar year. The
company’s balance sheet as of June 30th is shown below:
Beech Corporation
Balance Sheet
June 30
Assets
Cash
$
74,000
Accounts receivable
143,000
Inventory
73,500
Plant and equipment, net of depreciation
224,000
Total assets
$
514,500
Liabilities and Stockholders’
Equity
Accounts payable
$
85,000
Common stock
310,000
Retained earnings
119,500
Total liabilities and stockholders’ equity
$
514,500
Beech’s managers...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
Beech Corporation is a merchandising company that is preparing a
master budget for the third quarter of the calendar year. The
company’s balance sheet as of June 30th is shown below:
Beech Corporation
Balance Sheet
June 30
Assets
Cash
$
74,000
Accounts receivable
143,000
Inventory
73,500
Plant and equipment, net of depreciation
224,000
Total assets
$
514,500
Liabilities and Stockholders’
Equity
Accounts payable
$
85,000
Common stock
310,000
Retained earnings
119,500
Total liabilities and stockholders’ equity
$
514,500
Beech’s managers...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
Beech Corporation is a
merchandising company that is preparing a master budget for the
third quarter of the calendar year. The company’s balance sheet as
of June 30th is shown below:
Beech Corporation
Balance Sheet
June 30
Assets
Cash
$ 92,000
Accounts
receivable
130,000
Inventory
48,600
Plant and
equipment, net of depreciation
216,000
Total
assets
$ 486,600
Liabilities and Stockholders’ Equity
Accounts
payable
$ 77,000
Common
stock
329,000
Retained
earnings
80,600
Total
liabilities and stockholders’ equity
$ 486,600
Beech’s managers have
made...
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter...
Beech Corporation is a merchandising company that is preparing a
master budget for the third quarter of the calendar year. The
company’s balance sheet as of June 30th is shown below:
Beech Corporation
Balance Sheet
June 30
Assets
Cash
$ 71,000
Accounts receivable
131,000
Inventory
45,500
Plant and equipment, net of depreciation
215,000
Total assets
$ 462,500
Liabilities and Stockholders’ Equity
Accounts payable
$ 76,000
Common stock
307,000
Retained earnings
79,500
Total liabilities and stockholders’ equity
$ 462,500
rev: 05_02_2017_QC_CS-88254...
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