Solution-Prepare the cash forecast for jan

Prepare the cash forecast for jan

Assignment Help Managerial Accounting

Reference no: EM132666223

Cash Budgeting § Historical Sales: Dec $200,000

Problem 1: As the owner of Indoor Racing Ltd, you wanted to prepare the cash forecast for Jan, Feb, and March of 2018.

Predicted Sales: Jan $220,000, Feb $250,000, Mar $270,000, Apr $340,000
Sales: 70% cash sale, 30% collected 1 month later
Supplies (gasoline, tires, parts, lubricants and other consumables) are paid for 1 month before sale. Supplies are valued at 20% of sales price
Purchase new Go-Karts paying $40,000 in Jan and another $20,000 in Feb
Operating Expenses (monthly) are paid in the month incurred (Rent $50,000, Utilities $25,000, Salary $75,000, Insurance $20,000, Depreciation $10,000)
Cash Balance must be minimum of $10,000
Beginning Cash on Jan 1is $30,000

Reference no: EM132666223

Questions Cloud

Which operating income refers to : Which Operating income refers to? The net income of the company during the relevant time period. / Operating Revenue minus Operating Expenses.

Find the inventory cost by the last-in first-out method : Periodic Inventory by Three MethodsThe units of an item available for sale. Determine the inventory cost by the last-in, first-out method.

How much the mortgage payments would increase : The Alberts would like to know how much the mortgage payments would increase net of any change in their income tax

Describe design and implementation of applications : What are baseline security requirements that should be applied to the design and implementation of applications, databases, systems, network infrastructure.

Prepare the cash forecast for jan : Cash Budgeting § Historical Sales: Dec $200,000. As the owner of Indoor Racing Ltd, you wanted to prepare the cash forecast for Jan, Feb, and March of 2018.

What is the meaning of internal control : What is five examples of internal control procedures designed to prevent fraud and accidental accounting errors? What's the meaning of internal control

What type of financing resource is jerome using : Jerome needs funding to help start a business selling school supplies. He uses a website that connects him directly with a lender who charges a below-market int

Determine the tax consequences to Vic : The Land Company, which had sold land to Vic for $80,000, reduced the mortgage on the land by $12,000. Determine the tax consequences to Vic

What is the company net working capital : If a balance sheet shows $4 million in current assets, $7 million in long-term assets, $2 million in current liabilities and $6 million in long-term liabilities

User Account

All Pages

Prepare the cash forecast for jan

Reference no: EM132666223

Reference no: EM132666223

Questions Cloud

Reviews

Write a Review

Managerial Accounting Questions & Answers

Manage budgets and financial plans

Prepare a retained earnings statement

Prepare a master budget for the three-month period

Construct the companys direct labor budget

Evaluate the predetermined overhead rate

Determine the company''s bid

Compute the pool rates for the different activities

Prepare Company financial statements

Prepare an analysis of terracycles

Discuss the ethical issues

Political resources in emerging markets

Management accounting - ehsan electronics company

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT