Reference no: EM132454266
ACCT556 Budgeting Assignment - DeVry University, USA
Cash Budget - The Hale Company is currently working on its cash budget for the coming year. The following information is available:
Projected sales for the coming year:
|
Month
|
Projected Sales
|
|
January
|
$850,000
|
|
February
|
750,000
|
|
March
|
730,000
|
|
April
|
850,000
|
|
May
|
830,000
|
|
June
|
750,000
|
|
July
|
900,000
|
The collection history of the Hale Company has been as follows:
- 20% of sales are collected in the month of the sale.
- 60% of the sales are collected in the month following the sale.
- 12% of the sales are collected in the 2nd month following the sale.
- 5% of the sales are collected in the 3rd month following the sale.
The following information regarding costs is available:
- The cost of goods sold is 54% of sales
- Items for sale are purchased in the month of the sale.
- 80% of accounts payable are paid in the month following when the cost is incurred.
- 20% of accounts payable are paid in the 2nd month following when the cost is incurred.
- Wages are 28% of sales and are paid currently
- Annual general and administrative costs are $1,411,200 and are incurred evenly throughout the year.
- Annual property taxes are $14,000 and are paid semi annually in June and October.
- A $10,000 cash capital purchase will be made in April.
The beginning cash balance in April is expected to be $47,000. The Hale Company has a policy of maintaining a minimum cash balance of $45,000. The company has an arrangement with a local bank for a line of credit that carries a 10% annual interest rate. If the ending monthly balance falls below $45,000, the company will borrow against the line of credit so that the minimum balance can be maintained. If the company has borrowed against the line of credit and a cash balance is expected to be above $45,000 at the end of a particular month, then repayments will be made bringing the cash balance down to $45,000. Interest on the line of credit is paid monthly. Assume that all line of credit transactions occur on the last day of the month.
Required - Prepare a cash budget for the Hale Company for the 2nd quarter of the year. Include April, May, June, and a quarter total in your budget.
|
Compute the water velocity in the connecting duct
: What would be the pressure difference between the duct inlet and outlet if the duct is horizontal and of constant diameter?Compute the water velocity
|
|
Interpretation of the end of of mice and men
: What is your interpretation of the end of Of Mice and Men? Why did it happen? How does it fit with the larger themes of the novel?
|
|
Describe the way the characters respond to acts of violence
: Consider the way violence is described in the Iliad, and the way the characters respond to acts of violence. From what we have read, is violence accepted.
|
|
Create a leadership position
: What, beyond naming qualities, makes a great leader? Was it that they find themselves in a situation that needed or called for a strong leader?
|
|
ACCT556 Budgeting Assignment Problem
: ACCT556 Budgeting Assignment Help and Solution - DeVry University, USA. Prepare a cash budget for the Hale Company for the 2nd quarter of the year
|
|
Demonstrate cultural competence using culturally relevant
: This week, you will complete the second section of your ePortfolio, which will demonstrate your cultural competence using culturally relevant methods
|
|
How you would frame a message to mobilize support
: From the perspective of an organizer of this movement, consider how you would frame a message to mobilize support for this cause, or for an event related.
|
|
Play a role in professional life
: How will professional organizations play a role in your professional life?
|
|
Behavioral theory and planning model
: In this learning activity, you will choose a behavioral theory and planning model for use with your health promotion program (drug and alcohol addiction rehab).
|