Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

How to calculate preliminary cash balance

08/12/2021 Client: muhammad11 Deadline: 2 Day

Question 1

1. The following details have been extracted from the budget of a merchandising company. Rent Expense $8,000 per month Depreciation Expense $ 3,500 per month Insurance Expense $1,250 per month Miscellaneous Expense 2% of sales, paid as incurred Commissions Expense 10% of sales Salaries Expense $7,000 per month Dec Jan Feb March Sales $45,000 $50,000 $65,000 $80,000 Commission and salaries expenses are paid 50% in the month to which they relate and the balance in the next month. Rent and miscellaneous expenses are paid as and when they occur. Insurance is prepaid at the beginning of the quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the next year.

$50,500

$75,000

$70,400

$62,750

1 points

Question 2

1. Which of the following best describes the term sensitivity analysis?

It evaluates a company's financial condition by doing financial statement analysis.

It is a testing technique to determine how results would differ if key assumptions are changed.

It is an evaluation of the accuracy of the assumptions.

It is an analysis of the emotional sensitivity of a company's employees.

1 points

Question 3

1. Diemans Corp .has provided a part of its budget for the second quarter: Apr May June Cash collections $40,000 $45,000 $52,000 Cash payments: Purchases of inventory 4,500 7,200 4,500 Operating expenses 7,900 5,600 9,000 Capital expenditures 0 20,000 4,600 The cash balance on April 1 is $12,000. Assume that there will be no financing transactions or costs during the quarter. Calculate the cash balance at the end of June.

$40,800

$85,700

$21,800

$26,500

1 points

Question 4

1. Which of the following is true of the sales budget?

It captures the variable and fixed expenses of the business.

It is used in the production budget.

It shows the value of expected production in a period.

It provides sales values that are used to prepare financial statements for external reporting purposes.

1 points

Question 5

1. Which of the following describes the production budget?

It gives the quantity of finished goods to be manufactured during a budget period.

It depicts the breakdown of sales on the basis of terms and conditions of collection of sales revenue.

It helps in planning to ensure the business has adequate cash.

It aids in planning to ensure the company has adequate inventory and cash on hand.

1 points

Question 6

1. Châtelain Company is preparing its budget for the third quarter. Cash balance on July 31 was $30,000. Assume there is no minimum balance of cash required and no borrowing is undertaken. Additional budgeted data is provided here: Jul Aug Sep Cash collections $50,000 $51,000 $52,000 Cash payments: Purchases of inventory 20,000 19,000 18,000 Operating expenses 25,000 21,000 32,000 Capital expenditures 5,000 9,000 16,000 Calculate the balance of cash at the end of August.

$29,050

$32,000

$28,800

$19,100

1 points

Question 7

1. Gamma Corp. has prepared a preliminary cash budget for the third quarter as shown below: Cash Budget Jul Aug Sep Beginning cash balance $32,000 $4,400 $6,900 Plus: Cash collections 49,400 51,000 44,600 Cash available $81,400 $55,400 $51,500 Less: Cash payments: Purchases of inventory 36,000 9,000 11,000 Operating expenses 41,000 30,500 30,900 Capital expenditures 0 9,000 7,700 Ending cash balance $4,400 $6,900 $1,900 Subsequently, the marketing department revised its figures for cash collections. New data are as follows: $52,000 in July, $50,000 in August, and $42,000 in September. Based on the new data, calculate the new projected cash balance at the end of September.

$7,000

$2,400

$8,500

$900

1 points

Question 8

1. Acme Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections $50,000 $40,000 $48,000 Cash payments: Purchases of inventory 31,000 22,000 18,000 Operating expenses 12,000 9,000 11,600 Capital expenditures 13,000 25,000 0 The cash balance on June 30 is projected to be $4,000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. Calculate the ending cash balance before financing for August.

($8,000)

$5,000

$9,000

$3,000

1 points

Question 9

1. Which of the following describes the selling and administrative expenses budget?

It captures the variable and fixed components of selling and administrative expenses of the business.

It depicts the breakdown of sales based on terms of collection.

It shows the cash flows related to the selling and administrative expenses and helps in planning to ensure the business has adequate cash.

It aids in planning to ensure the company has adequate inventory on hand.

1 points

Question 10

1. The cash budget and the budgeted financial statements are collectively known as the ________.

financial budget

master budget

operating budget

production budget

1 points

Question 11

1. Uncle's Caps Inc. a merchandising company has provided the following budgeted amounts for the next budget period. Balance of cash at the beginning $30,000 Cash collections 680,000 Payments for: Purchase of inventory 350,000 Selling and administrative expenses 70,400 Capital expenditures 89,000 A minimum cash balance of $250,000 is required to be maintained. The company can borrow in increments of $10,000 as and when required. Assume the company can borrow the needed funds at the end of the period. Calculate the ending cash balance for the budget period.

$250,600

$540,230

$300,000

$320,300

1 points

Question 12

1. Farmerlands Inc. has budgeted sales for the months of September and October at $300,000 and $280,000, respectively. Monthly sales are 80% credit and 20% cash. Of the credit sales, 50% are collected in the month of sale and 50% are collected in the following month. Calculate cash collections for the month of October.

$168,000

$288,000

$232,000

$290,000

1 points

Question 13

1. Freighters Inc. has the following budgeted figures: Calculate the ending merchandise inventory for the month of March.

$33,750

$52,000

$39,000

$38,750

1 points

Question 14

1. Kapital Inc. has prepared the operating budget for the first quarter of 2015. They forecast sales of $50,000 in January, $60,000 in February, and $70,000 in March. Variable and fixed expenses are as follows: Variable: Power cost (40% of Sales) Miscellaneous expenses: (5% of Sales) Fixed: Salary expense: $8,000 per month Rent expense: $5,000 per month Depreciation expense: $1,200 per month Power cost/fixed portion: $800 per month Miscellaneous expenses/fixed portion: $1,000 per month Using the information above, calculate the amount of selling and administrative expenses for the month of February.

$47,500

$41,700

$43,000

$38,500

1 points

Question 15

1. Nobula Corp. is preparing their budget for the second quarter and provides the following data: Apr May Jun Budgeted purchases $20,000 $24,000 $18,000 Budgeted Cash Payments for Inventory Purchases Apr May Jun 60% of previous month purchases $6,000 $12,000 $14,400 40% of current month purchases 8,000 9,600 7,200 Total cash payments $14,000 $21,600 $21,600 Assume that accounts payable pertains only to suppliers of inventory. Based on the above data, the amount of Accounts Payable that should be shown in the budgeted balance sheet as on June 30 is ________.

$3,600

$10,800

$5,400

$12,000

1 points

Question 16

1. Fulkron Inc. provides the following data taken from its third quarter budget: Jul Aug Sep Cash collections $66,000 $42,000 $45,000 Cash payments: Purchases of inventory 50,000 48,000 25,000 Operating expenses 10,000 15,000 20,000 Capital expenditures 0 32,000 6,000 The cash balance on June 30 is projected to be $10,000. Based on the above data, calculate the shortfall the company is projected to have at the end of September.

$43,000

$28,000

$40,000

$35,000

1 points

Question 17

1. Acme Inc. has prepared its third quarter budget and provided the following data: Jul Aug Sep Cash collections $50,000 $40,000 $48,000 Cash payments: Purchases of inventory 31,000 22,000 18,000 Operating expenses 12,000 9,000 11,600 Capital expenditures 13,000 25,000 0 The cash balance on June 30 is projected to be $4,000. The company has to maintain a minimum cash balance of $5,000 and is authorized to borrow at the end of each month to make up any shortfalls. It may borrow in increments of $5,000 and has to pay interest every month at an annual rate of 5%. All financing transactions are assumed to take place at the end of the month. The loan balance should be repaid in increments of $5,000 whenever there is surplus cash. How much will the company have to borrow at the end of July?

$5,000

$15,000

$0

$10,000

1 points

Question 18

1. June sales were $40,000 while projected sales for July and August were $50,000 and $60,000, respectively. Sales are 40% cash and 60% credit. All credit sales are collected in the month following the sale. Calculate expected collections for July.

$36,000

$54,000

$44,000

$50,000

1 points

Question 19

1. McLeod Fries Inc. has budgeted sales for June and July at $680,000 and $720,000, respectively. Sales are 80% credit, of which 70% is collected in the month of sale and 30% is collected in the following month. What is the budgeted accounts receivable balance on July 31?

$ 225,320

$ 158,200

$ 200,500

$ 172,800

1 points

Question 20

1. Gamma Corp. is preparing its budget for the first quarter of 2015. The following data is provided: Inventory, Purchases and COGS Budget Jan Feb Mar Cost of goods sold (a) $30,000 $28,500 $22,500 Desired ending inventory(b) 10,700 9,500 9,800 Total inventory required 40,700 38,000 32,300 less Beginning inventory -11,000 -10,700 -9,500 Purchases 29,700 27,300 22,800 (a) COGS = 75% of sales (b) $5,000 + 20% of COGS for next month The amount of Merchandise Inventory to be shown on the budgeted balance sheet at March 31 would be ________.

$9,500

$8,750

$10,700

$9,800

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Smart Tutor
Calculation Guru
Engineering Mentor
A+GRADE HELPER
Unique Academic Solutions
Academic Mentor
Writer Writer Name Offer Chat
Smart Tutor

ONLINE

Smart Tutor

Being a Ph.D. in the Business field, I have been doing academic writing for the past 7 years and have a good command over writing research papers, essay, dissertations and all kinds of academic writing and proofreading.

$33 Chat With Writer
Calculation Guru

ONLINE

Calculation Guru

I have read your project details and I can provide you QUALITY WORK within your given timeline and budget.

$18 Chat With Writer
Engineering Mentor

ONLINE

Engineering Mentor

I have worked on wide variety of research papers including; Analytical research paper, Argumentative research paper, Interpretative research, experimental research etc.

$50 Chat With Writer
A+GRADE HELPER

ONLINE

A+GRADE HELPER

I have assisted scholars, business persons, startups, entrepreneurs, marketers, managers etc in their, pitches, presentations, market research, business plans etc.

$25 Chat With Writer
Unique Academic Solutions

ONLINE

Unique Academic Solutions

I reckon that I can perfectly carry this project for you! I am a research writer and have been writing academic papers, business reports, plans, literature review, reports and others for the past 1 decade.

$25 Chat With Writer
Academic Mentor

ONLINE

Academic Mentor

I am an elite class writer with more than 6 years of experience as an academic writer. I will provide you the 100 percent original and plagiarism-free content.

$19 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Business Process Redesign - Mike's bikes distribution and branding - Mrp calculation formula in excel - We re going on a bear hunt printable book - Ncert class 4 english worksheets - Uts library apa referencing - Cajas de carton chapter 4 summary - Chlorsig how to use - Essentials of software engineering 4th edition by tsui - Webcam input or output - Joint venture account format - Case Study 6 - Which of the following is the best example of oligopoly - Light travels in a straight line - Follow the Assignment instructions - The 18th amendment modified worksheet answers - Carrier alarm codes list - Australian tax office chatswood - Dilution ratio calculator ounces - Summer in a day - Schmitt trigger oscillator op amp - Textbook passage atahualpa and the bible answer key - Peyton approved trial balance 2018 - What medisoft database contains the unique chart numbers of patients - Midyis test example questions - The clown punk poem - The shabbat short story - Discussion - Supply chain management information system - Information Security Incident RESEARCH SCENARIO - General Psychology Discussion - How can the basic if/elseif/else control statements help meet structural design objectives in your code? Provide a code example to support your comments. - How netflix reinvented hr ppt - Hsc biology communication questions - Hating alison ashley characters - Advance ballast cross reference - Sundar pichai leadership style - Some lessons from the assembly line audience - Mcmi iii hand scoring worksheet - Locker room talk ethics case - Quizzes - How to make a fairy tale book - John deere manufacturing process - Iprocrastinate app download mac - Australian curriculum: mathematics scope and sequence - Yarra hills secondary college compass - 3.18 unit test what a character part 1 - Collected cases of injustice rectified - PAD 520 Policy Writing and Analysis - Addison inc uses a perpetual inventory system - Major diseases afflicting the nervous system - Alfred hospital clinical trials pharmacy - Grand strategy matrix of starbucks - Cell structure and function review packet answer key - Fetac level 6 advanced craft certificate - Mini Research Paper - Mainstream internet harrison county indiana - Hall company manufactures a single product - Conservation of energy at the skate park answers - Sunset cinema jenkins minnesota showtimes - 9/11 - Crisis Management - A proposed new investment has projected sales of - Glan afan comprehensive school - Why does wheeled coach have excess inventory - Army blc sharp essay - Managing Criminal Justice Organizations - Recognizing employee contributions with pay - Intermediate accounting chapter 23 statement of cash flows solutions - Cafe michigan's manager gary stark - Princess noura university application form 2019 - Class a prescription balance least weighable quantity - Hp snmp proxy agent - The systematic study of organizational behavior relates to - Bhp billiton finance limited - What ended greece's golden age making it vulnerable to invaders - Why is the social technographics ladder useful - 600 words due 10/02/2020 Telehealth enhancing care for elderly client - case study - Chemistry form ws5 5.2 a answer key - The man with the red sweater most likely represents - Week 4 - Assignment 2: Survey Research about Telecommunications Risks - Management - Is distance a vector or scalar - Physics education v35 2 march 2000 130 131 - Week 7 plagiarism free - Puberty blues 1981 characters - Cai guo qiang footprints of history - Business and law - Software Engineering - Your bank account pays interest with an ear of 5 - A man flies a small airplane from fargo to - Big w credit card holder - Barrow alaska climate graph - Defects in timber due to conversion - Mahalia do not disturb chords - Inventory management assessment - Gcu lead - The espresso lane to global markets cage analysis - Edith hollander frank biography - What is the exact speed of light