M/s. MNO produces cookies. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly unit sales were; 40000 in quarter one, and 45000, 50000, 55000 in the subsequent quarters. Unit sales are expected to increase 25% in quarter one, and 5%, 10%, 5% in the subsequent quarters and each unit is expected to sell for Rs. 6. Required: Prepare Sales Budget

M/s. MNO produces cookies. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prior year quarterly unit sales were; 40000 in quarter one, and 45000, 50000, 55000 in the subsequent quarters. Unit sales are expected to increase 25% in quarter one, and 5%, 10%, 5% in the subsequent quarters and each unit is expected to sell for Rs. 6. Required: Prepare Sales Budget

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter8: Budgeting For Planning And Control

Section: Chapter Questions

Problem 34E: A companys sales for the coming months are as follows: About 20 percent of sales are cash sales, and...

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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.
Golden Corporation is preparing its cash budget for the next year. Sales are expected to be at P100,000 for January; P200,000 for February; P300,000 for March; and P100,000 for April. Approximately half of the sales are cash basis and the other half are on account or on credit. Of the credit sales, 70% is collected on the following month; 20% on the second month, and 10% on the third month. What is the budgeted collection for April? 1. P 130,000 2. P 180,000 3. P 260,000 4. P 360,000 Group of answer choices 1 2 3 4
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ABC produces Goods for resale at throughout America. The company is currently in the process of establishing a master budget on a quarterly basis for this coming fiscal year, which ends December 31. Prioryear quarterly sales were as follows;First quarter 14,000 unitsSecond quarter 6,000 unitsThird quarter 8,000 unitsFourth quarter 4,000 unitsUnit sales are expected to increase 20 percent, and each unit is expected to sell for $1. The management prefers to maintain ending finished goods inventory equal to 10 percent of next quarter’s sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 2,000 units. The beginning inventory was 1000 units. Direct Materials Purchases Budget InformationEach unit of product requires 1.5 pounds of direct materials per unit, and the cost of direct materials is $1 per pound. Management prefers to maintain ending raw materials inventory equal to 30 percent of next quarter’s materials needed in production.…
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Shalom Company prepared the following sales budget for the first two quarters of 2023: January February March April 10,000 14,000 11,000 15,000 May 18,000 June 20,000 Unit sales Shalom Company sells the product at P15 per unit. 20% of sales is cash, and the balance is on credit. The company estimates that collection of sales on account will be 60% in the month of sales with the remainder in the following month. On December 31, 2022, accounts receivable was P60,000. Amounts must be in whole numbers. Example: 88,000 or (88,000) How much is the expected total cash receipts for January?
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Cash DisbursementTimber Company is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Lumber purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 15 percent of sales and are paid during the month of sale. Other operating costs amounting to 10 percent of sales are to be paid in the month following the month of sale. Additionally, a monthly lease payment of $64,000 is paid for computer services. Sales revenue is forecast as follows Month Sales Revenue February $220,000 March 260,000 April 270,000 May 310,000 June 290,000 July 330,000 RequiredPrepare a schedule of cash disbursements for April, May, and June.Do not use a negative sign with your answers. Timber Company Schedule of Cash Disbursements April, May, and June April May June Lumbers purchases Answer Answer Answer Wages Answer Answer Answer Operating expenses Answer Answer…
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