Colter company prepares monthly cash budgets relevant data

Assignment Help Accounting Basics
Reference no: EM13392990

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are:











Direct materials purchases






Direct labor






Manufacturing overhead






Selling and administrative expenses






All sales are on account. Collections are expected to be 49% in the month of sale, 30% in the first month following the sale, and 21% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,400 of depreciation per month.

Other data:



Credit sales: November 2013, $250,600; December 2013, $318,900.



Purchases of direct materials: December 2013, $100,900.



Other receipts: January-Collection of December 31, 2013, notes receivable $15,260; February-Proceeds from sale of securities $6,950.



Other disbursements: February-payment of $5,110 cash dividend.

The company's cash balance on January 1, 2014, is expected to be $60,300. The company wants to maintain a minimum cash balance of $48,600.

Prepare schedules for expected collections from customers and expected payments for direct materials purchases for January and February.

Prepare a cash budget for January and February.

Reference no: EM13392990

Questions Cloud

Describe securitization process as it associates to housing : 1 explain the securitization process as it relates to the housing market. what is the rationale for the establishment
At what point could communication about the project become : you are completing your project planning activities for the project you have been assigned to manage. the remaining
Gen following information answer following questions tr : given the following information answer the following questions tr 3q tc 1500 2q a. what is the break-even level of
Develop a proposal for a qualitative and or quantitative : the marketing research proposal distills the essence of the project and serves as a contract between the researcher and
Colter company prepares monthly cash budgets relevant data : colter company prepares monthly cash budgets. relevant data from operating budgets for 2014
Genaro needs to capture a return of 40 percent for his : 1.genaro needs to capture a return of 40 percent for his one-year investment in a property. he believes that he can
Post at least 5 paragraphs which list skills that are : you are the manager of the production department and the project manager will come from your group. this will be a
Analyze the needs and motivation of the target market what : you are a marketing manager for a health and beauty organization and need to market a new brand of toothpaste that fits
Determine the total production for larger economy in which : consider two competitive economies that have the same quantities of labor l 400 and capital k 400 and the same


Write a Review


Accounting Basics Questions & Answers

  Spend on security analysis

You are an investment manager who is currently managing assets worth $6 billion. You believe that active management of your fund could generate between an additional one tenth of one percent return on the portfolio. If you want to make sure your a..

  Problem related to reciprocal method

Allocate the overhead costs of the support departments to the producing departments using the reciprocal method. Bases for allocation are: maintenance-square footage, personnel- number of employees. (round to the nearest dollar)

  Accounting principles and prepare a short memo

Directions research the related generally accepted accounting principles and prepare a short memo to the president that summarizes how to report the $40,000 loss on Klote's 2010 income statement. Cite your reference and applicable paragraph number..

  Prepare a multiple-step income statment

Need to prepare a multiple-step income statment for 2010 for Howell Corporation that is presented in accordance with generally accepted accounting principles(including format and terminology).

  Explain how the perpetual and periodic inventory systems

explain how the perpetual and periodic inventory systems differ especially in determining cost of goods sold and ending

  Estimated liability under warranties

During 2010, Markel had actual outlay of $48,000 for repairs under warranty. Markel employs the expense warranty accrual method-What amount should the company report for estimated liability under warranties at the end of 2010?

  Problem related to early retirement from company

John Roberts is 55 years old and has been asked to accept early retirement from his company. The company has offered John three alternative compensation packages to induce John to retire:

  Adjusting journal entry to record securities at fair value

Cost and fair value data for the trading securities of Clifford Company at December 31, 2010, are $100,000 and $74,000, respectively. Which of the following correctly presents the adjusting journal entry to record the securities at fair value?

  Does other charges get added to purchase price

Company owned vehicle -Fixed asset being traded in for another vehicle. Does the Other Charges get added to the purchase price or classed out to fees?

  Computing budgeted cost of work performed

Provide and show all answers and step by step work to obtain the answer, not skipping any steps. Show all equations, acronyms (ie ETC, ACWP, etc), and if applicable, a description of how you came to the answer.

  Computing gain or loss on early extinguishment of debt

On June 30, 2011, Omara acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt?

  Annual financial statements for the stockholders

NITSU Manufacturing Corporation is preparing the annual financial statements for the stockholders. A statement of cash flows must be prepared. The following data on cash flows were developed for the entire year ended December 31, 2009:

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd