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

Find the statement of cash flows, 1. A fellow student says to you: "The sta...

1. A fellow student says to you: "The statement of cash flows is the easiest of the basic financial statements to prepare because you know the answer before you start. You compa

Closing stock, The value of un-sold stock. The stock is valued at cost or m...

The value of un-sold stock. The stock is valued at cost or market price either is lower. Usually, the closing stock is not specified in the trial balance but is specified in adjust

Find an article just-in-time inventory systems, Find a journal article onl...

Find a journal article online about just-in-time inventory systems. In the subject line of your post, include the title of the article that you read. Post a link to that article wi

Long-term liabilities, Long-Term Liabilities: These are usually for mo...

Long-Term Liabilities: These are usually for more than one year. They cover almost all the outsider's liabilities not comprised in the current liabilities and provisions. Such

Machining costing, what are the factor for setting costing for a certain ma...

what are the factor for setting costing for a certain machining job

What would be the balance in the paid-in capital, Horton Co. was organized ...

Horton Co. was organized on January 2, 2010, with 500,000 authorized shares of $10 par value common stock. During 2010, Horton had the following capital transactions: January 5-iss

Elements of manufacturing cost, i want some informations about elements of ...

i want some informations about elements of manufacturing cost

QUESTION AND ANSWER, question and answer: XYZ trading purchased 6,850 killo...

question and answer: XYZ trading purchased 6,850 killos of material at a total cost of 21,920.00. The material price variance was 1,370.00 favorable. The standard price per killo w

Process costing, If question (CA IPCC) is silent which method to follow: av...

If question (CA IPCC) is silent which method to follow: avg cost or fifo or lifo?

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