User Account

All Pages

How does the cash budget for june 2019

Assignment Help Financial Management
Reference no: EM132405338

Question

Consider the budgeted income statement for Goo Pro. for the month ended 30 June 2019 below:-

$ $

Sales 290,000

Less: Cost of Goods Sold

Inventory, 31 May 2019 50,000

Purchases 192,000

Available for sale 242,000

Inventory, 30 June 2019 40,000

202,000

Gross profit 88,000

Less: Operating expenses

Wages 36,000

Utilities 5,000

Advertising 10,000

Depreciation 1,000

Office expenses 4,000

Insurance and property taxes 3,000 59,000

Operating profit 29,000

Additional information:

· The cash balance on 31 May 2019 $15,000.

· Sales proceeds are collected as follows: 80% the month of sale; 10% the second month; and 10% the third month.

· Accounts receivable are $44,000 on 31 May 2019 consisting of $20,000 from April 2019 sales and $24,000 from May 2019 sales.

· Accounts payable on 31 May 2019 are $145,000.

· Goo Pro pays 25% of purchases during the month of purchase and the remainder during the following month.

· All operating expenses requiring cash are paid during the month of recognition, except that insurance and property taxes are paid annually in December for the forthcoming year.

Required:

How does the cash budget for June 2019? Confine your analysis to the given data. Ignore income taxes.

Reference no: EM132405338

Questions Cloud

Prepare the journal entry to record allocation of net income : Assume the partnership income-sharing agreement calls for income to be divided 35% to Coburn and 65% to Webb. Prepare the journal entry to record the allocation
Calculate the current and acid-test ratios : Calculate the following ratios for the company and explain the general implications of your results: Gross profit; operating profit; and net profit after tax.
How many additional tickets must be sold to cover the extra : How many tickets must be sold to earn RM60,000 target profit? How many additional tickets must be sold to cover the extra cost of billboard advertising ?
Describe exploration and idea generation methods : Describe the starting challenge in the chosen situation of your group, identify the methods used to better establish and define this problem. and clearly show
How does the cash budget for june 2019 : All operating expenses requiring cash are paid during the month of recognition, except that insurance and property taxes are paid annually in December.
Why and how might managers not act in the best interest : How can we use the output of the accounting system to help ensure that management actions are in the interst of the owners.
How well these models predict the future until we get there : According to Wing, "We can make all the supercomputer models we want, but we won't really know how well these models predict the future until we get there.
What journal entry would pharoah make at january 2 : On January 2, 2018, Pharoah Leasing Company leases equipment to Brick Co. with 5 equal annual payments of $164000 each, payable beginning January.
What is genotype of homozygous individual for eye color : What is the genotype of a homozygous individual for eye color, using B as the allele descriptor?

Reviews

Write a Review

Financial Management Questions & Answers

  Forecast next years cost of goods sold

Your company has sales of $91,300 this year and cost of goods sold at $67,000. Using the percent of sales method, forecast next years cost of goods sold.

  What is the minimum level of annual return

The risk free rate on Treasury bill is very low right now. Let's say it is 0.25%, annualized. Suppose, you also looked up the annual rate of change in the S&P500 market index, and it is 7%. You are considering a stock with a beta that is 10% less vol..

  Calculate the present value of total inflows

Calculate the present value of total outflows. Calculate the present value of total inflows.

  Find the present value of monthly cash stream

It is April 1, 2017 and you need to find the present value of a monthly cash stream that is $1 at the end of the 1st month,

  Using the liquidity premium theory

Based on economists’ forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: R1 = 1.30% E(2r1) = 2.45% L2 = 0.05% E(3r1) = 2.55% L3 = 0.10% E(4r1) = 2.85% L4 = 0.12% Using the l..

  Audited under the new sarbanes-oxley law

Cathy is an accountant with a major corporation that is on the list of corpo- rations to be audited under the new Sarbanes-Oxley law.

  Which uses unadjusted historical costs

The HC method, which uses unadjusted historical costs, does not take into account depreciation expenses, purchasing power, and unrealized gains in replacement value. Despite these weaknesses as a financial reporting method, the HC method is used more..

  What do operating activities measure through net income

What do operating activities measure through net income and changes in accounts receivable?

  Compute bowwow gross profit

In 2010, the BowWow Company purchased 11608 units from its supplier at a cost of $ 11 per unit. compute BowWow's gross profit for 2010.

  Standard deviation of return distribution for the portfolio

A portfolio manager has made an investment that will generate returns that are subject to the state of the economy during the year. Use the following information to calculate the standard deviation of the return distribution for the portfolio.

  Manufactures time series photographic equipment

Photo light Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt/equity ratio of 0.60. It's considering building a new manufacturing facility. The facility costs $40 million now to build. This new plant..

  Resulting cash flows item notes initial cash flow

A 100,000 loan agreement has payments and inputs as follows. Calculate the XNPV, XIRR, NPV and IRR of the resulting cash flows Item Notes Initial Cash Flow (PV) 10,000.00 Start Date 01-Jan-2008 Interval (Months) 6 Year One 1,000.00 Year Two 1,500.00 ..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd