Wages and salaries, Cost Accounting

Given the information that follows, prepare a cash budget for the XYZ Store for the first six months of 2010.

  • All prices and costs remain constant.
  • Sales are 90% for credit and 10% for cash.
  • With respect to credit sales, 70% are collected in the month after the sale, 20% in the second month, and 10% in the third. Bad-debt losses are insignificant.
  • Sales, actual and estimated, are:

October 2009         $200,000        March 2010        $220,000
November 2009      350,000        April 2010          300,000
December 2009      300,000        May 2010          280,000
January 2010         150,000        June 2010          240,000
February 2010        250,000        July 2010          320,000

  • Payments for purchases of merchandise are 80% of the following month's anticipated sales.
  • Wages and salaries are:

January 2010        $45,000            April 2010          $55,000
February 2010        40,000            May 2010            60,000
March 2010            50,000            June 2010            57,000

 

  • Rent is $6,000 a month.
  • Interest of $9,500 is due on the last day of each calendar quarter, and no quarterly cash dividends are planned.
  • A tax prepayment of $70,000 for 2010 income is due in April.
  • A capital investment of $80,000 is planned in June, to be paid for then.
  • The company has a cash balance of $80,000 at December 31, 2009, which is the minimum desired level for cash. Funds can be borrowed in multiples of $5,000. (Ignore interest on such borrowings.)

 

Posted Date: 3/15/2013 3:51:29 AM | Location : United States







Related Discussions:- Wages and salaries, Assignment Help, Ask Question on Wages and salaries, Get Answer, Expert's Help, Wages and salaries Discussions

Write discussion on Wages and salaries
Your posts are moderated
Related Questions
Fixed Overheads Variance This is defined like the difference between the fixed overheads attributed and the standard cost of fixed overheads absorbed in the production achieve

Methods of Labour Remuneration There Labour remuneration methods can be broadly classified into two factors as: i. Time rate or on the basis of the time spend in the factor

the total (ie. aggregated) cashflows in respect to operations, with details of annual cash inflows & annual outflows in respect to operations, the total (ie. aggregated) cashflo

Piece Rate System - Labour Remuneration However an employee is paid a fixed amount for all units produced irrespective of time in use; the wages payable are computed like fo

Candler Inc a computer software development firm has stock outstanding as follows: 40,000 shares of $2 nonparticipating, noncumulative preferred stock of $10 par, and 250,000 share

Introduction of Internal Rate of Return The traditional internal rate of return (IRR) method of project selection has been shown to be inferior to the NPV method due to vario

Holmes Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many mil

sir i want to know the whole procress of costing

Mr. Homer Simpson, President and Chief Executive Officer of Duff's Beer Making Supplies Inc. recently hired you as the new budget analyst for his company.  As your first duty, he h

ANNUAL DEMAND = 2400 UNITS ORDERING COST PER UNIT = RS.4.00/- UNIT PRICE = RS 2.40/- STORAGE COST = 2% P.A INTEREST RATE = 10 % P.A LEAD TIME = HALF MONTH CALCULATE ECONOMIC ORDER