Wages and salaries, Cost Accounting

Assignment Help:

Given the information that follows, prepare a cash budget for the XYZ Store for the first six months of 2010.

  • All prices and costs remain constant.
  • Sales are 90% for credit and 10% for cash.
  • With respect to credit sales, 70% are collected in the month after the sale, 20% in the second month, and 10% in the third. Bad-debt losses are insignificant.
  • Sales, actual and estimated, are:

October 2009         $200,000        March 2010        $220,000
November 2009      350,000        April 2010          300,000
December 2009      300,000        May 2010          280,000
January 2010         150,000        June 2010          240,000
February 2010        250,000        July 2010          320,000

  • Payments for purchases of merchandise are 80% of the following month's anticipated sales.
  • Wages and salaries are:

January 2010        $45,000            April 2010          $55,000
February 2010        40,000            May 2010            60,000
March 2010            50,000            June 2010            57,000

 

  • Rent is $6,000 a month.
  • Interest of $9,500 is due on the last day of each calendar quarter, and no quarterly cash dividends are planned.
  • A tax prepayment of $70,000 for 2010 income is due in April.
  • A capital investment of $80,000 is planned in June, to be paid for then.
  • The company has a cash balance of $80,000 at December 31, 2009, which is the minimum desired level for cash. Funds can be borrowed in multiples of $5,000. (Ignore interest on such borrowings.)

 


Related Discussions:- Wages and salaries

Cost volume profit analysis, Cost Volume Profit Analysis 1. Post Publish...

Cost Volume Profit Analysis 1. Post Publishers has collected the following data for recent months: Month                 Issues published              Total cost May

Determine the absorption rate of overheads, Determine the Absorption Rate o...

Determine the Absorption Rate of Overheads The budgeted production overheads and other budgeted data of compute are given as: Budget Overhead cost for the period = Ks

Amortization of bond premium for the year, on the first day of the current ...

on the first day of the current fiscal year $2,000,000 of 10 year 7% bonds with interest payable annually, were sold for $2,125,000. Present enteries to record the following transa

Managerial accounting, Classic Coolers manufactures portable coolers adorne...

Classic Coolers manufactures portable coolers adorned with college logos. During the first quarter of the year, the company had the following costs: Direct materials used $55,500 D

Determine the acquisition cost, Waterloo Machining, Inc. paid $1,800,000 fo...

Waterloo Machining, Inc. paid $1,800,000 for factory equipment on January 1, 2012. It paid $100,000 for delivery and $220,000 for installation and modifications.  Waterloo received

Explain with examples and cite were needed, What are the distinguishing cha...

What are the distinguishing characteristics of these types of stock- describe any one of them. What is the difference between par value, book value and market value of stock? Expla

Total variable overheads variances, Total Variable Overheads Variances ...

Total Variable Overheads Variances  If Variable Overhead Expenditure Variance =  Shs.1, 330 Variable Overhead Efficiency Variance = Shs.320 Then total variable overheads

Goal definition and communication - standard costing, Goal Definition and C...

Goal Definition and Communication - Behavioural Aspects of Standards Goal Definition The desired goals should be clearly defined to individuals, departments and the organ

Sales revenue variance (srv), SALES REVENUE VARIANCE (SRV) The word 'Sa...

SALES REVENUE VARIANCE (SRV) The word 'Sales Variance' is indicated by the expression 'operating profit variance due to sales' by ICMA.  It is described as 'the difference betw

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