Fundamentals Of Cost Accounting (6th Edition)
6th Edition
ISBN: 9781259969478
Author: WILLIAM LANEN, Shannon Anderson, Michael Maher
Publisher: McGraw Hill Education
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Chapter 13, Problem 37E
Estimate Cash Receipts
Scare-2-B-U (S2BU) specializes in costumes for all occasions. The average price of each of its costumes is $240. For each occasion, S2BU receives a 20 percent deposit two months before the occasion, 50 percent the month before, and the remainder on the day the costume is delivered. Based on information at hand, managers at S2BU expect to make costumes for the following number of occasions during the coming months:
Required
- a. What are the expected revenues for S2BU for each month, April through September? Revenues are recorded in the month of the occasion.
- b. What are the expected cash receipts for each month, April through July?
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Scare-2-B-U (S2BU) specializes in costumes
for all occasions. The average price of each
of its costumes is $340. For each occasion,
S2BU receives a 10 percent deposit two
months before the occasion, 50 percent the
month before, and the remainder on the
day the costume is delivered. Based on
information at hand, managers at S2BU
expect to make costumes for the following
number of occasions during the coming
months.
April
45
May
30
June
20
July
35
August
45
September
105
Required:
a. What are the expected revenues for
S2BU for each month, April through
September? Revenues are recorded in the
month of the occasion.
b. What are the expected cash receipts for
each month, April through July?
Problem 1. Jane McDonald, a financial analyst for Carroll Company, has prepared the following sales and cash
disbursement estimates for the period February to June of the current year.
Cash
disbursements
Month
Sales
February
$500
$400
March
600
300
April
400
600
May
200
500
June
200
200
McDonald notes that historically, 30% of sales have been for cash. Of credit sales, 70% are collected 1 month after the
sale, and the remaining 30% are collected 2 months after the sale. The firm wishes to maintain a minimum ending
balance in its cash account of $25. Balances above this amount would be invested in short-term government securities
(marketable securities), whereas any deficits would be financed through short-term bank borrowing (notes payable).
The beginning cash balance at April 1 is $115.
a. Prepare cash budgets for April, May, and June.
b.
How much financing, if any, at a maximum would Carroll Company require to meet its obligations during this
3-month period?
c. A pro forma balance…
Treasure Service anticipates the following sales revenue over a five-month period:
Its collection history indicates that credit sales are collected as follows:
E (Click the icon to view the sales data.)
A (Click the icon to view the collections data.)
The company's sales are 20% cash and 80% credit.
How much cash will be collected in Janua
More Info
25% in the month of the sale
50% in the month after the sale
Complete the cash budget to determine how much cash will be collected in January, February, March and for the quarter in total. (Round your answers to the nearest whole do
20% two months after the sale
Treasure Service
5% are never collected
Cash Collections Budget
For the Months of January through March
January
Data Table
Print
Done
Cash sales
Collection of credit sales:
25% Month of sale
November
December
January
February
March
50% Month after
Sales revenue.......
16,100
$
10,000
$ 15,200
$
12,000
$
14,200
20% Two months after
Total cash collections
Print
Done
Chapter 13 Solutions
Fundamentals Of Cost Accounting (6th Edition)
Ch. 13 - Prob. 1RQCh. 13 - Prob. 2RQCh. 13 - Prob. 3RQCh. 13 - What role does the master budget play in the...Ch. 13 - What problems might arise if a firm relies solely...Ch. 13 - What is the coordinating role of budgeting?Ch. 13 - Prob. 7RQCh. 13 - Write out the inventory equation that is used to...Ch. 13 - What makes creating budgets for marketing and...Ch. 13 - Prob. 10RQ
Ch. 13 - Preparing a budget is a waste of time. The...Ch. 13 - In the Business Application feature, Using the...Ch. 13 - Prob. 13CADQCh. 13 - Would the budgeting plans for a company that uses...Ch. 13 - Government agencies are limited in spending by...Ch. 13 - What is the difference between the planning and...Ch. 13 - When might the master budget start with a forecast...Ch. 13 - In some organizations (firms, universities,...Ch. 13 - Our cash budget shows a surplus for the quarter,...Ch. 13 - Your boss asks for your estimate on the costs of a...Ch. 13 - The chapter identified four techniques used for...Ch. 13 - Role of Budgets and Plans
Cosmic Corporation is a...Ch. 13 - Human Element in Budgeting
Roller Partners is a...Ch. 13 - Estimate Sales Revenues Stubs-R-Us is a local...Ch. 13 - Estimate Sales Revenues Friendly Financial has 160...Ch. 13 - Estimate Sales Revenues Larson, Inc., manufactures...Ch. 13 - Estimate Production Levels Offenbach Son has just...Ch. 13 - Estimate Sales Levels Using Production Budgets...Ch. 13 - Estimate Inventory Levels Using Production Budgets...Ch. 13 - Estimate Production Levels: Capacity Constraints...Ch. 13 - Prob. 31ECh. 13 - Estimate Purchases and Cash Disbursements Midland...Ch. 13 - Estimate Purchases and Cash Disbursements Lakeside...Ch. 13 - Estimate Cash Disbursements Cascade, Ltd., a...Ch. 13 - Estimate Cash Collections Minot Corporation is...Ch. 13 - Estimate Cash Collections Ewing Company is...Ch. 13 - Estimate Cash Receipts Scare-2-B-U (S2BU)...Ch. 13 - Estimate Cash Receipts Varmit-B-Gone is a pest...Ch. 13 - Prepare Budgeted Financial Statements
Refer to the...Ch. 13 - Prepare Budgeted Financial Statements Cycle-1 is a...Ch. 13 - Prepare Budgeted Financial Statements Carreras Caf...Ch. 13 - Budgeting in a Service Organization Executive...Ch. 13 - Prob. 43ECh. 13 - Prob. 44ECh. 13 - Prob. 45ECh. 13 - Prob. 46ECh. 13 - Sensitivity Analysis Sanjanas Sweet Shoppe...Ch. 13 - Sensitivity Analysis Classic Limo, Inc., provides...Ch. 13 - Prob. 49ECh. 13 - Prob. 50ECh. 13 - Prepare Budgeted Financial Statements The...Ch. 13 - Prob. 52PCh. 13 - Prepare Budgeted Financial Statements Gulf States...Ch. 13 - Prob. 54PCh. 13 - Prob. 55PCh. 13 - Prepare a Production Budget Haggstrom, Inc.,...Ch. 13 - Sales Expense Budget SPU, Ltd., has just received...Ch. 13 - Budgeted Purchases and Cash Flows Mast Corporation...Ch. 13 - Prepare Budgeted Financial Statements HomeSuites...Ch. 13 - Prob. 60PCh. 13 - Comprehensive Budget Plan Brighton, Inc.,...Ch. 13 - Comprehensive Budget Plan Panther Corporation...Ch. 13 - Budgeted Financial Statements in a Retail...Ch. 13 - Cash Budgets and Sensitivity Analysis in a Retail...Ch. 13 - Prob. 66IC
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