Reference no: EM132835425
Question - Green Friends Ltd is a garden design and landscaping business that started operations on 1 September 2020. The following information has been provided by the firm.
In September, cash sales were $15,000 and credit sales $35,000. Total expected sales in the following three months are: $70,000 in October; $78,000 in November; and $82,000 in December. The company expects 30% of the sales of each month to be cash sales and the remainder credit sales. Credit sales are expected to be collected 50% in the month of the sale, 30% in the next month, and 20% in the following month.
All purchases of inventory are on credit. Purchases of inventory in September were $40,000. The company estimates purchases in the following three months to be: $32,000 in October, $38,000 in November and $42,000 in December. Purchases are paid 50% in the month of purchase, and 50% in the following month.
Wages expense is estimated to be $18,000 in October, $20,000 in November and $22,000 in December, paid in cash.
Other operating expenses are budgeted to be $24,000 in October, $25,000 in November and $28,000 in December, paid in cash.
Depreciation expenses of $900 per month are expected.
The cost of sales is estimated as 40% of sales revenue each month.
On 1 September, equipment costing $12,000 was purchased. The equipment will be paid for in two equal instalments in October and November.
Estimated cash received to be from the sale of a block of land in November is $56,000 (book value)
The cash balance at 1st October 2020 was $3,500
Required -
1. Make a Budgeted Income Statement for the period October - December 2020?
2. Make a schedule of estimated receipts from debtors (accounts receivable) for the months of October, November and December 2020.
3. Make a cash budget for October, November and December 2020?
Compute net sales for the two months ended December
: Assume that Sales Returns and Allowances, Sales Discounts, compute net sales for the two months ended December 31
|
Prepare the december shareholders equity section
: Prepare the December 31, 2020 shareholders' equity section of the SFP. Accumulated Other Comprehensive Income $560,000. Common Shares $310,000
|
Calculate sultan income from the investment
: Calculate Sultan's income from the investment if the equity method is applied. Sultan Corporation pays $500,000 for a 20 percent interest in Chula Corporation
|
Why is it important to define risk in the innovation process
: Why is it important to define risk in the innovation process and what are the obstacles in establishing risk measures? At least one APA style reference
|
Make a schedule of estimated receipts from debtors
: Make a schedule of estimated receipts from debtors (accounts receivable) for the months of October, November and December 2020
|
What were equivalent unit for conversion costs for bims corp
: Bims Corporation uses the weighted-average method. What were the equivalent units for conversion costs in the Assembly Department for the month?
|
How do we define risk in finance
: How do we define risk in finance? How do we define risk in the innovation process? At least one APA style reference and in-text citation
|
What kareem intangible assets should be debited for
: KAREEM contributed P 84,000 in identifiable assets. Under the bonus method, to adjust the capital accounts, KAREEM's intangible assets should be debited for
|
State and explain five uses of the softwares
: State and explain 5 uses of the softwares uses of word processors in teaching
|