Budgeted net income for 2009 is P 19,500. Included in the budgeted income statement is depreciation of P 12,500. The changes in the trade current accounts are: Accounts Receivable (P 5,000) Merchandise Inventory P 7,000 Accounts Payable P 6,000 Accrued Expenses (P 2,000) Budgeted cash inflow (outflow) from operating activities must be a. P 38,000 b. (P 1,000) c. P 34,000 d. (P3,000)

Budgeted net income for 2009 is P 19,500. Included in the budgeted income statement is depreciation of P 12,500. The changes in the trade current accounts are: Accounts Receivable (P 5,000) Merchandise Inventory P 7,000 Accounts Payable P 6,000 Accrued Expenses (P 2,000) Budgeted cash inflow (outflow) from operating activities must be a. P 38,000 b. (P 1,000) c. P 34,000 d. (P3,000)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 13EA: What is the amount of budgeted cash payments if purchases are budgeted for $420,000 and the...

See similar textbooks

Similar questions

What is the amount of budgeted cash payments if purchases are budgeted for $190,500 and the beginning and ending balances of accounts payable are $21,000 and $25,000, respectively?
You are provided with the following information taken from Sage Hill Inc's March 31, 2027, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 1 2 3. 5. 6. 7. Additional information concerning Sage Hill Inc. is as follows. Gross profit is 24% of sales. Actual and budgeted sales data: March (actual) April (budgeted) March April $18.840 $47.100 $62460 $12,280 72.700 23.120 37,100 123,400 22,910 Sales are both cash and credit, Cash collections expected in April are: 152.900 12.320 (40% of $47.100) (60% of $72,700) Half of a month's purchases are paid for in the month of purchase and half in the following month Cash disbursements expecte Purchases March Purchases April $22,910 28,910 $51820 Cash operating costs are anticipated to be $12,110 for the month of April. Equipment costing $2,530 will be purchased for cash in April. The company wishes to maintain a minimum cash balance of $12,240. An…
I ne Tollowing information is available from various budgets for the current period: Account Cash Accounts Receivable Merchandise Inventory Insurance Expense (expense incurred during the period) Equipment Depreciation Expense - Equipment (expense incurred during the period) Budget Cash budget Amount $20,000 Schedule of cash receipts from customers 38,000 Inventory, purchases, and cost of goods sold budget 47,000 Selling and administrative expense budget 2,000 Capital expenditures budget 31,000 Selling and administrative expense budget 1,000 The following balances are available from the balance sheet at the end of the previous year: Prepaid Insurance Equipment Accumulated Depreciation Equipment $6,000 22,000 1,000 What would be the amount of total assets on the budgeted balance sheet?
E8-33. Cash balance The following budgeted May cash information is available for Salado Corp.: $336,000 56,200 82,000 Net after-tax income Depreciation expense.. Accrued income tax expense. Increase in Accounts Receivable for month. Decrease in Accounts Payable for month Estimated bad debts expense Dividends declared in May.. Dividends paid in May 8,000 7,000 4,100 35,000 47,000 If Salado's May 1 cash balance is $23,000, what is the company's budgeted May 31 cash balance?
Bramble Corp. reported the following information for 2022: Budgeted purchases October November December $260000 $296000 $318000 • Operating expenses are: Salaries, $110000; Depreciation, $30000; Rent, $20000; Utilities, $28000 • Operating expenses are paid during the month incurred. • Accounts payable is used only for inventory acquisitions. What are budgeted cash disbursements for operating expenses in November? $158000 $454000 $149000 O $188000
Lamonte Company reports the following budgeted December 31 adjusted trial balance. Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation-Equipment Accounts payable Loan payable Common stock Retained earnings (beginning year balance) Sales Cost of goods sold Loan interest expense Depreciation expense Salaries expense Totals Debit $ 54,000 Credit 124,000 68,000 129,000 $ 29,000 38,000 26,000 210,000 64,000 524,000 364,000 12,000 14,000 126,000 $ 891,000 $ 891,000 Exercise 20-28A (Algo) Merchandising: Preparing a budgeted income statement LO P4 Prepare the budgeted income statement for the current year ended December 31. Ignore income taxes. LAMONTE COMPANY Budgeted Income Statement For Year Ended December 31 Gross profit Selling, general and administrative expenses
The following information pertains to Omega Projects Ltd for the three months ended 31 December 2020. Actual Budgeted October November December R R R Revenue (20% for cash and 80% on credit) 360 000 380 000 400 000 Purchases (10% for cash 90% on credit) 240 000 280 000 320 000 Salaries and wages paid 40 000 60 000 60 000 Cash expenses 24 000 28 000 32 000 Depreciation 2 000 2 000 2 000 Additional information: It is expected that debtors will settle their accounts as follows: 20% in the month of invoice 70% in the month after the month of invoice, and 5% in the second month after the month of The remaining 5% is usually written off as bad Trade creditors are paid in the month after the purchases at a discount of 5%. 50% of the salaries and wages are weekly wages. Because wages are paid weekly, usually 10% of the wages are paid in the month following the month in which they were…
Income Statement Prepare the budgeted income statement. Cash Flows Balance Sheet Budgeted Income Statement Sales revenue Cost of goods sold Depreciation expense Operating income Interest expense Net income $ 372,000 X (336,000) X (4,000) 32,000 X (840) X $ 31,160
You are provided with the following information taken from Wildhorse Inc.'s March 31, 2025, balance sheet. Cash Accounts receivable Inventory Property, plant, and equipment, net of depreciation Accounts payable Common stock Retained earnings 1. 2. 3. 4. 5. Additional information concerning Wildhorse Inc. is as follows. 6. 7. Gross profit is 25% of sales. Actual and budgeted sales data: March (actual) April (budgeted) March April Purchases March $48,200 $19,280 42,420 $61,700 Purchases April $11,600 70,700 20,180 36,010 Sales are both cash and credit. Cash collections expected in April are: (40% of $48,200) (60% of $70,700) 120,800 22,560 154,500 11.680 Half of a month's purchases are paid for in the month of purchase and half in the following month. Cash disbursements expecte $22,560 28,320 $50,880 Cash operating costs are anticipated to be $12,630 for the month of April. Equipment costing $2,560 will be purchased for cash in April. The company wishes to maintain a minimum cash balance…
The following information is available from various budgets for the current period: Amount Budget Cash budget Account Cash Accounts Receivable Prepaid Insurance Equipment Accumulated Depreciation - Equipment Schedule of cash receipts from customers Inventory, purchases, and cost of goods sold budget Selling and administrative expense budget Capital expenditures budget OA. $173,000 OB. $164,000 OC. $159,000 O D. $162,000 $28,000 Merchandise Inventory Insurance Expense (expense incurred during the period) Equipment Depreciation Expense Equipment (expense incurred during the period) Selling and administrative expense budget 2,000 The following balances are available from the balance sheet at the end of the previous year: $5,000 28,000 7,000 What would be the amount of total assets on the budgeted balance sheet? 35,000 41,000 2,000 36,000
Required information [The following information applies to the questions displayed below.] Lamonte Company reports the following budgeted December 31 adjusted trial balance. Debit $ 52,200 122, 200 66, 200 127,200 Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation-Equipment Accounts payable Loan payable Common stock Retained earnings (beginning year balance) Sales Cost of goods sold Loan interest expense Depreciation expense Salaries expense Totals LAMONTE COMPANY Budgeted Income Statement For Year Ended December 31 Gross profit Selling, general and administrative expenses 362,200 10, 200 12, 200 124, 200 $ 876,600 Prepare the budgeted income statement for the current year ended December 31. Ignore income taxes. $ Credit 0 0 $ 27,200 36,200 24, 200 205,500 61,300 522, 200 $ 876,600
(a) For the current year, Encor Ltd. had net sales of $450,000 and paid $260,000 for the cost of goods sold. They had average receivables of $130,000, average payables of $57,000, and an average inventory of $90,000. Calculate the Operating cycle and Cash cycle for Encor Ltd. Interpret the results. (b) Prepare a Cash Budget based on the info below for the year 2020 for the months of January, February, March, and April. - Encor Ltd., anticipates sales of $18,000 in January 2020, with anticipated growth of 10% per month; - Credit sales are paid 50% the same month and 50% the following month (credit sales for December 2019 was $14,000) - Credit purchases are paid 35% of sales; paid in the month they are incurred - Wages and expenses are 30% of sales every month; paid in the month they are incurred - In February, the company pays $27,000 cash for new equipment - The beginning cash balance is $13,000