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
Storage and Issue of Material A number of questions are relevant in this control of materials throughout storage and question of materials. These are as: a) Stock control r

Describe the concept of full cost recovery with illustrative examples.


King Airlines King Airlines is one of many low-cost airlines in Europe. The managers want to expand the business and have an opportunity to purchase a second-hand plane to op

Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2013 Sales $ 850 Cost of goods sold (3

1.Assume that Abel business corporation is purchasing new equipment, for 350,000$ at the beginning of 2014. Assume that Abel business corporation is in the 30% corporate tax bracke

Direct Materials Budget This budget implies the estimated quantities and costs of every the raw materials and components desired for the output demand by the production budget

what is the classification of cost & how it is done?

DEFINITION OF BUDGET As per the Institute of Cost & Management (ICMA), London, a BUDGET is 'a quantitative statement and / or financial, prepared and approved prior to a defin