Quarterly cash dividends are planned, Financial Accounting

Assignment Help:

Given the information that follows, draw a cash budget for the XYZ Store for the first six months of 2012.

Every prices and costs remain constant.
Sales are 80% for credit and 20% for cash.
With respect to credit sales, 55% are collected in the month after the sale, 30% in the second month, and 15% in the third. Bad-debt losses are insignificant.
Sales, actual and estimated, are:

October 2011	$300,000	March 2012	$200,000
November 2011	450,000	April 2012	350,000
December 2011	400,000	May 2012	280,000
January 2012	200,000	June 2012	220,000
February 2012	250,000	July 2012	320,000

Payments for purchases of merchandise are 90% of the following month's anticipated sales.
Wages and salaries are:

January 2012	$40,000	April 2012	$50,000
February 2012	45,000	May 2012	45,000
March 2012	55,000	June 2012	55,000

Rent is $5,000 a month.
Interest of $8,500 is due on the last day of every calendar quarter, and no quarterly cash dividends are planned.
A tax prepayment of $60,000 for 2012 income is due in April.
A capital investment of $60,000 is planned in June, to be paid for then.
The company has a cash balance of $90,000 at December 31, 2011, which is the minimum desired level for cash. Funds can be borrowed in multiples of $5,000. (Ignore interest on this type of borrowings.)

Related Discussions:- Quarterly cash dividends are planned

Acoounts, The book of Deven Verma could not be tallied. The accountant tran...

The book of Deven Verma could not be tallied. The accountant transferred the difference of Rs. 1,270 in the suspense account on the debit side. The following mistakes were found la

Users of accounting, How is Accounting information useful to A prospective ...

How is Accounting information useful to A prospective Investor?

U.s savings bonds, Natalie cashes in her U.S savings Bonds and receives % 5...

Natalie cashes in her U.S savings Bonds and receives % 520, which she deposits in her personal bank account. Journalize it

Operating lease, For a capital lease the lessee records the lease payments ...

For a capital lease the lessee records the lease payments as rent expense, but for an operating lease the lessee reports the lease payments as depreciation expense For an operating

Define the term relevance - accounting information, Define the term Relevan...

Define the term Relevance - accounting information Accounting information should have the ability to influence decisions. Except this characteristic is present, there is ac

Assignment, Internal Rate of Return

Internal Rate of Return

Balance Of Payment, it is for what purpose?

it is for what purpose?

Calculating future values, Show all support work for your calculations. ...

Show all support work for your calculations. 1. Simple Interest versus Compound Interest [LO1] First City Bank pays 7 percent simple interest on its savings account balances,

The balance of arndt''s retained earnings, On December 31, 2010, the stockh...

On December 31, 2010, the stockholders' equity section of Arndt, Inc., was as follows: Common stock, par value $10; authorized 30,000 shares; issued and outstanding 9,000 shares $

Prepare mehring''s statement of cash flows, The following information is av...

The following information is available for Mehring Corporation for the year ended December 31, 2012: Collection of principal on long-term loan to a supplier

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages