Question

In: Finance

Steady Eddie Corp. is constructing its cash budget. Its budgeted monthly sales are $8,000, and they...

Steady Eddie Corp. is constructing its cash budget. Its budgeted monthly sales are $8,000, and they are constant from month to month. 40% of its customers pay in the first month and take the 2% discount, while the remaining 60% pay in the month following the sale and do not receive a discount. The firm has no bad debts. Purchases for next month's sales are constant at 50% of projected sales for the next month. "Other payments," which include wages, rent, and taxes, are 25% of sales for the current month. Construct a cash budget for a typical month and calculate the average net cash flow during the month. Enter your answer rounded to two decimal places.

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 11 months ago
Next > < Previous

Related Solutions

Steady Eddie Corp. is constructing its cash budget. Its budgeted monthly sales are $8,000, and they...
Steady Eddie Corp. is constructing its cash budget. Its budgeted monthly sales are $8,000, and they are constant from month to month. 40% of its customers pay in the first month and take the 2% discount, while the remaining 60% pay in the month following the sale and do not receive a discount. The firm has no bad debts. Purchases for next month's sales are constant at 50% of projected sales for the next month. "Other payments," which include wages,...
Steady Eddie Corp. is constructing its cash budget. Its budgeted monthly sales are $6,000, and they...
Steady Eddie Corp. is constructing its cash budget. Its budgeted monthly sales are $6,000, and they are constant from month to month. 40% of its customers pay in the first month and take the 2% discount, while the remaining 60% pay in the month following the sale and do not receive a discount. The firm has no bad debts. Purchases for next month's sales are constant at 50% of projected sales for the next month. "Other payments," which include wages,...
Raelynn is preparing its master budget for the quarter ended September 30. Budgeted sales and cash...
Raelynn 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          69,250          85,400          54,750 Cash payments for merchandise          42,950          39,300          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 $15,000 in cash; $45,000 in accounts receivable;...
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash...
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow. July August September Budgeted sales $ 55,000 $ 71,000 $ 57,000 Budgeted cash payments for Direct materials 15,360 12,640 12,960 Direct labor 3,240 2,560 2,640 Factory overhead 19,400 16,000 16,400 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...
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash...
Built-Tight is preparing its master budget for the quarter ended September 30. Budgeted sales and cash payments for product costs for the quarter follow: July August September Budgeted sales $ 64,000 $ 80,000 $ 48,000 Budgeted cash payments for Direct materials 16,160 13,440 13,760 Direct labor 4,040 3,360 3,440 Factory overhead 20,200 16,800 17,200 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...
Lilly Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget...
Lilly Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,200 units are planned to be sold in December. The variable selling and administrative expense is $3.10 per unit. The budgeted fixed selling and administrative expense is $60,800 per month, which includes depreciation of $6,720 per month. The remainder of the fixed selling and administrative expense represents current cash flows.Calculate the budgeted cash disbursements for selling and administrative expenses for December. Give your...
Arakaki Inc. is working on its cash budget for January. The budgeted beginning cash balance is...
Arakaki Inc. is working on its cash budget for January. The budgeted beginning cash balance is $41,000. Budgeted cash receipts total $114,000 and budgeted cash disbursements total $113,000. The desired ending cash balance is $60,000. How much will be the excess (deficiency) of cash available over disbursements for January? A. $1,000 B. $155,000 C. $42,000 D. $40,000
-budgeted income statement – direct materials budget – production budget – sales budget -sales budget –...
-budgeted income statement – direct materials budget – production budget – sales budget -sales budget – production budget – direct materials budget – budgeted income statement Who would typically be responsible for the direct material quantity variance? -the production manager -the chief financial officer -the purchasing manager -the human resources manager Which of the following is not a component of the operating budget? -sales budget -selling and administrative budget -Budgeted balance sheet -raw materials purchases budget Top-down budgeting is: -when...
Which of the following sequences is correct? Select one a. Cash receipts budget-sales budget-production budget-budgeted income...
Which of the following sequences is correct? Select one a. Cash receipts budget-sales budget-production budget-budgeted income statement b. Sales budget-production budget-direct materials budget-budgeted income statement c Budgeted income statement-direct materials budget-production budget-sales budget O d Inventory budget-production budget-sales budget-selling and administrative budger
Walsh Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,000....
Walsh Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $18,000. Budgeted cash receipts total $183,000 and budgeted cash disbursements total $188,000. The desired ending cash balance is $30,000. The excess (deficiency) of cash available over disbursements for January is: Select one: a. 23,000 b. $13,000 c. $201,000 d. ($5,000)
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT