Reference no: EM132820261
Question
PROBLEM 1:
It is May 28 and you have just gotten a summer job that will pay you (net of taxes) P800 per month. You start June 1 and will work until school starts halfway through August. Your scholarship pays for tuition, room and board. But you must buy books, pay for transportation to and from school, and pay for clothing, any extra meal, entertainment, and so on. You have gathered the following data:
1. One round trip airline ticket is P260, and you'd like to come home for Thanksgiving (your parents will drive you there in August, and you will try to catch a ride home with another student in December).
2. Books are estimated to cost about P500 per semester for your anticipated major
3.Supplies should be another P150
4.Clothing might run P100 - you already have almost everything you think you'll need.
5.There are 16 weeks in the semester, and you think you'll need P50 per week for allowance to cover extra meals and entertainment
6.Before school even starts, you need to cover any summer expenses, including going out with friends. P30 a week sounds about right, since all your friends will be working and saving for college as well. There are 11 weeks of summer.
Right now, you have P200 in your checking account.
A. Make cash budget for the summer and the first semester of college. (Do the entire time period, do not break it down by week or by month.)
B. Comment on the estimated ending balance. What actions can you take, if any, to increase it?
PROBLEM 2:
JJJL Corporation has the following budgeted sales for the selected six-month period:
Month - Unit Sales
June 15,000
July 20,000
August 35,000
September 25,000
October 30,000
November 20,000
There were 7,500 units of finished goods in inventory at the beginning of June. Plans are to have an inventory of finished product equal to 20 percent of the unit sales for the next month.
Three pounds of materials are required for each unit produced. Each pound of material costs P20. Inventory levels for materials equal 30 percent of the needs for the next month. Materials inventory on June 1 was 5,000 pounds.
Required:
A. Make production budgets in units for July, August, and September.
B. Make a purchases budget in pounds and Pesos for July, August, and September.
PROBLEM 3:
BAM Company has the following projected account balances for September 30 of the current year:
Accounts payable - 20,000
Accounts receivable -50,000
Depreciation, factory - 12,000
Inventories (8/31) - 90,000
Inventories (9/30) - 90,000
Materials used - 100,000
Office salaries - 40,000
Insurance, factory - 2,000
Factory wages - 70,000
Bonds payable - 80,000
Sales - 400,000
Capital stock - 200,000
Retained earnings (beginning) - 64,000
Maintenance, factory - 14,000
Cash - 28,000
Equipment, net - 120,000
Buildings, net - 200,000
Utilities, factory - 8,000
Selling expenses - 30,000
Required:
A. Make a budgeted income statement for the month ended September 30.
B. Make a budgeted balance sheet as of September 30.