Quarterly cash payments budget, Financial Accounting

Assignment Help:

Emily Jackson, RSC Designs management accountant, is in charge of preparing the master budget for 2013.  She has gathered the following information:

1. Annual profit for the 2012/2013 financial year is expected to be the sum of  each group members RMIT student number.  The split (anticipated sales mix)  between SML Sculptures and LGE Sculptures is for every 3 LGE sculptures sold 2 SML Sculptures will be sold.  Forty percent (40%) of the total sales (of each product) will occur in the first 6 months of the financial year and the remaining sixty percent (60%) will occur in the remaining six months. 

Expected sales for the final quarter of 2012 are expected to be 15,000 units of the SML Sculptures and 23,000 of the LGE Sculptures.

2. RSC Designs' sales history indicates that 40 percent of all sales are on credit, with the remainder of the sales being on a cash basis.  The company's collection experience shows that 60 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 40 percent is collected in the following quarter.  (For simplicity, assume the company is able to collect 100 percent of its accounts receivable.)

3. The SML sculpture has a selling price of $45 per unit, and the LGE sculpture has a selling price of $75 per unit.  These prices are expected to hold constant throughout the 2012/2013 financial year.  

4. The production manager attempts to end each quarter with enough finished - goods inventory in each product line to cover 20 percent of the following  quarter's sales.  Moreover, an attempt is made to end each quarter with 20 percent of the glass sheets needed for the following quarter's production.  As the metal strips are purchased locally the company buys them on a just-in-time
basis, and as a result the inventory is negligible.

5. All direct material purchases are made on credit, with 80 percent of each quarter's credit purchases being paid in cash during the same quarter as the purchase.  The remaining 20 percent is paid in the next quarter.

6. Indirect materials are purchased on a cash basis as needed.  Work-in-process is negligible.


Related Discussions:- Quarterly cash payments budget

Stock valuation, D1=$0.65, D2=$0.74, D3=$0.79, D4=$0.84.Dividen grow contin...

D1=$0.65, D2=$0.74, D3=$0.79, D4=$0.84.Dividen grow continually at rate of 3% per year stating from year 5 onward.assuming the required rate of return to this stock is 12%.what wil

Illustration of deffered tax-financial statement, Illustration of Deffered ...

Illustration of Deffered Tax A firm bought an item of plant at a total amount of £50,000. During the first year, the firm provided for depreciation of 10,000. The item of plant

Prepare a purchases ledger control account, Question: The following inf...

Question: The following information was extracted from the books of William Noel for the year ended 30 April 2009.

Determine the payback period for the project, An investment project require...

An investment project requires a net investment of $100,000. The project is expected to generate annual net cash inflows of $28,000 for the next 5 years. The firm's cost of capital

Calculate operating cash flow , Question 1 The following information s...

Question 1 The following information should be used for questions #1 through #7: Jersies, Inc financial statement data.   2009 2010

Primary restriction of making demand, Q. Primary restriction of making dema...

Q. Primary restriction of making demand? The primary restriction of making demand forecasts lies in the fact that they are forecasts and hence their reliability is unknown. Mos

Instantaneous standard deviation, The current stock price of International ...

The current stock price of International Wood is $69 and the stock does not pay dividends. The instantaneous risk free rate of return is 10%. The instantaneous standard deviation

Control deficiency, Significant Deficiency -Control deficiency or combinat...

Significant Deficiency -Control deficiency or combination of control deficiencies, which adversely affects company's ability to authorize, initiate, process, record or report exte

State the types of business organizations, State the types of business orga...

State the types of business organizations There are numerous types of business organizations: Service business-doctors, lawyers, barber shop etc. Merchandising busin

Write Your Message!

Captcha
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