a collection budget
Q: Explain the term budgeted costs.
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: Describe the benefits of preparing a budget to an organization
A: Budget means what is required to be done compair it actual to what is actually happned in other…
Q: Briefly explain “Self-Impose Budget or Participative” and “Master Budget”.
A: Here are given two terms. (1) Self imposed budget or participative budget (2) Master budget Lets…
Q: Explain direct labour budget.
A: Definition: Operating budget: Operating budget which projects the budgeted amounts of operational…
Q: What is a self-imposed budget?
A: Budget: It is a statement of estimated revenue and expenditure for a specific period.
Q: Define flexible budget.
A:
Q: Explain the term of operating budget.
A: Introduction Budget is monetary plan for future. It deals with where the company wants to reach in…
Q: budget is a
A: Introduction : A budget can be understood as an accounting statement, prepared by the managers of a…
Q: A budgeted income statement is prepared from which budgets
A: The budget is prepared to estimate the requirements for the future period.
Q: A budget is a way of
A: A financial budget is prediction of expenses and income for a future period of time. Business…
Q: Prepare Sales Budget,Production Budget,Material usageand purchase budget and Direct Labour Budget.
A: Budgets are prepared in order to forecast the sales and the cost to produce the products.
Q: Define the term operating budget.
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: Budgeting
A: Budgeting: Budgeting is the estimation of revenue and expense for a given period of Time. it is the…
Q: Describe budgeting process.
A: Budgeting is a process to prepare the financial statement by the manager to estimate the…
Q: Define the term budget. How are budgets used in planning?
A: SOLUTION- BUDGET- BUDGET ARE PREPARE FOR PLANNING AND CONTROLLING PURPOSES. BUDGETS FACILITATE…
Q: Define master budget.
A:
Q: How is the operating budget of the master budget used by management?
A: the master budget consists of all types of budget. operating budget is one of the budgets in the…
Q: Construct a material usage and purchases budget of the Bara Enterprise.
A: A material usage and purchases budget is a statement of estimation of a material required to produce…
Q: Define operating budget
A: An operating budget comprises all things considered and costs over some stretch of time (regularly a…
Q: What are the benefits of a master budget?
A: Master Budget:The master budget is the core budget that describes the full process of budget. This…
Q: uses and advantage of budget
A: Budget is referred to as an estimation of the expenses as well as revenues of the individual or the…
Q: Sales and Production Budgets
A: Solution;- 1)Prepare a sales budget for each quarter and for the year in total. Show sales by…
Q: define control andhow budget use in control
A: Budgets are prepared by an organization to estimate the revenues from different projects and the…
Q: Describe the flow of budget data in an organization
A: Budget: A budget is a statement of estimated revenues and expenditures for a specific period of…
Q: Master budget
A: We know that budgeting is a predefined estimate made by the management for a future period. In…
Q: Example of preparing a Pro Forma Balance Sheet Statement Budget
A: Pro Forma: A pro forma statement could be a prediction, and a budget is a plan. Your budget could…
Q: Explain the types of budget.
A: Budgets: Budgets are prepared for the planning and controlling purposes. Budgets facilitate planning…
Q: Define direct material budget.
A: Budget: Budget is an effective tool to achieve the financial and operational goals of the business.…
Q: Does a budget provide guidlines of the application of the organisaion`s resources?
A: Budgeting is critical for any business because it allows income and expenses to be matched. It makes…
Q: Define Control. How are budgets used to control?
A: Control means cut down or limiting the expenses of the business. Cost control is very important in a…
Q: What are budgets used for?
A: Management accounting is one of the branches of accounting. Unlike financial accounting, the…
Q: What is a budget?
A:
Q: Define static budget.
A: Budget is a estimation of revenue and expenses for a future period of time
Q: Define the term sales budget.
A: A sales budget provides an estimate of the volume of goods and services that a company proposes to…
Q: Define cash budget
A: A budget is a statement prepared to find out future incomes and expenditures. It is a plan prepared…
Q: A cash budget is:
A: A Budget is a financial document which specifies the management’s plan for a future specified time…
Q: How to compute the flexable budget items.
A: Flexible Budget: When the sales volume and price value and production volume etc stable conditions…
Q: component of the master budget
A: Second option is wrong because budgeted income statement is a component of master budget. Third…
Q: Describe the role of a budget director.
A:
Q: Cash Budget
A: Cash budget is an estimate of cash flow for a particular future period.
Q: Outline the steps in preparing an operating budget.
A: Operating Budget: The operating budget is that budget which is prepared to plan all the operating…
Q: Explain the components of master budget.
A: Master Budget: A master budget is defined as an aggregation of all the lower-level budgets that…
Q: Define the term master budget.
A: Budget: Budget is an effective tool to present the estimated actions for future time period. It…
Q: a.Identify the budget preparation approach used
A: An Estimate is the process of calculation or judgement of the value, number, quantity.It is a kind…
Q: Define capital budget
A: Capital Budget consists of capital receipts and payments. It also incorporates transactions in the…
Q: Analyze expense planning using activity-based budgeting.
A: Activity-based budgeting (ABB) refers to the system of creating a budget which documents/records,…
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- One Device makes universal remote controls and expects to sell 500 units in January, 800 in February, 450 in March, 550 in April, and 600 in May. The required ending inventory is 20% of the next months sales. Prepare a production budget for the first four months of the year.Pilsner Inc. purchases raw materials on account for use in production. The direct materials purchases budget shows the following expected purchases on account: Pilsner typically pays 25% on account in the month of billing and 75% the next month. Required: 1. How much cash is required for payments on account in May? 2. How much cash is expected for payments on account in June?Halifax Shoes has 30% of its sales in cash and the remainder on credit. Of the credit sales, 65% is collected in the month of sale, 25% is collected the month after the sale, and 5% is collected the second month after the sale. How much cash will be collected in August if sales are estimated as $75,000 in June, $65,000 in July, and $90,000 in August?
- Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April. and 2,900 in May. The required ending inventory is 20% of the next months sales, and the beginning inventory on January 1 was 600 units. Prepare a production budget for the first four months of the year.All Temps has a policy of always paying within the discount period, and each of its suppliers provides a discount of 2% if paid within 10 days of purchase. Because of the purchase policy, 80% of its payments are made in the month of purchase and 20% are made the following month. The direct materials budget provides for purchases of $23,812 in February, $23,127 in March, $21,836 in April, and $28,173 in May.What is the balance in accounts payable for April 30, and May 31?Barnstormer sells airplane accessories for $20 each. It expects sales of 120,000 units in quarter 1 and a 7% increase each subsequent quarter for the next 8 quarters. Prepare a sales budget by quarter for the first year.
- Palmgren Company produces consumer products. The sales budget for four months of the year is presented below. Company policy requires that ending inventories for each month be 25 percent of next months sales. At the beginning of July, the beginning inventory of consumer products met that policy. Required: Prepare a production budget for the third quarter of the year. Show the number of units that should be produced each month as well as for the quarter in total.The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three-quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is 25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units. Prepare the following: a. A sales budget for June. b. A production budget for June.Cash budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are presented with the following budget information: The company expects to sell about 10% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month following the sale and the remainder the following month (second month following sale). Depreciation, insurance, and property tax expense represent 50,000 of the estimated monthly manufacturing costs. The annual insurance premium is paid in January, and the annual property taxes are paid in December. Of the remainder of the manufacturing costs, 80% are expected to be paid in the month in which they are incurred and the balance in the following month. Current assets as of September 1 include cash of 40,000, marketable securities of 75,000, and accounts receivable of 300,000 (60,000 from July sales and 240,000 from August sales). Sales on account for July and August were 200,000 and 240,000, respectively. Current liabilities as of September 1 include 40,000 of accounts payable incurred in August for manufacturing costs. All selling and administrative expenses are paid in cash in the period they are incurred. An estimated income tax payment of 55,000 will be made in October. Bridgeports regular quarterly dividend of 25,000 is expected to be declared in October and paid in November. Management desires to maintain a minimum cash balance of 50,000. Instructions Prepare a monthly cash budget and supporting schedules for September, October, and November. On the basis of the cash budget prepared in part (1), what recommendation should be made to the controller?
- Earthies Shoes has 55% of its sales in cash and the remainder on credit. Of the credit sales, 70% is collected in the month of sale, 15% is collected the month after the sale, and 10% is collected the second month after the sale. How much cash will be collected in June if sales are estimated as $75,000 in April, $65,000 in May, and $90,000 in June?Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.The data shown were obtained from the financial records of Italian Exports, Inc., for March: Sales are expected to increase each month by 10%. Prepare a budgeted income statement.