Prepare a cash budget for each of the months october

Reference no: EM13571693

Randall Company is a merchandising company that sells a single product. The company's inventories, production, and sales in units for the next three months have been forecasted as follows:

	October	November	December
Beginning inventory	20,000	20,000	20,000
Merchandise purchases	58,000	68,000	33,000
Sales	58,000	68,000	38,000
Ending inventory	20,000	20,000	15,000

Units are sold for $13 each. One fourth of all sales are paid for in the month of sale and the balance are paid for in the following month. Accounts receivable at September 30 totaled $464,000.

Merchandise is purchased for $7 per unit. Half of the purchases are paid for in the month of the purchase and the remainder are paid for in the month following purchase. Selling and administrative expenses are expected to total $134,000 each month. One half of these expenses will be paid in the month in which they are incurred and the balance will be paid in the following month. There is no depreciation. Accounts payable at September 30 totaled $304,000 includes selling and administrative payables.

Cash at September 30 totaled $94,000. A payment of $314,000 for purchase of equipment is scheduled for November, and a dividend of $214,000 is to be paid in December.

Required:

a.	Prepare a schedule of expected cash collections for each of the months of October, November, and December. (Omit the "$" sign in your response.)

Schedule of Expected Cash Collections
	October	November	December
Sales	$	$	$
September accounts receivable	$
October sales		$
November sales			$
December sales

Total cash collections	$	$	$

b.	Prepare a schedule showing expected cash disbursements for merchandise purchases and selling and administrative expenses for each of the months October, November, and December. (Omit the "$" sign in your response.)

Schedule of Expected Cash Disbursements
	October	November	December
Merchandise purchases	$	$	$
Selling and administrative expenses

Total incurred	$	$	$

Disbursements, previous month	$	$	$
Disbursements, current month

Total	$	$	$

c.	Prepare a cash budget for each of the months October, November, and December. There is no minimum required ending cash balance. (Input all amounts as positive values. Omit the "$" sign in your response.)

Randall Company Cash Budget
	October	November	December
Beginning cash balance	$	$	$
Add cash receipts

Total cash available	$	$	$

Disbursements
Accounts payable
Payment for equipment
Payment for dividend

Total disbursements

Ending cash balance	$	$	$

Reference no: EM13571693

Questions Cloud

May 21 obtained a 60-day extension on a 9000 trade account : otter corporation whose fiscal year endied june 30 2011 completed the following transactions involving notes payablemay

Izabelle and marta are forming a partnership izabelle will : izabelle and marta are forming a partnership. izabelle will invest a piece of equipment with a book value of 7500 and a

Your parents will retire in 23 years they currently have : your parents will retire in 23 years. they currently have 240000 and they think they will need 1600000 at retirement.

What is the net present value of the project if the : star city is considering an investment in the community center that is expected to return the following cash

Prepare a cash budget for each of the months october : randall company is a merchandising company that sells a single product. the companys inventories production and sales

Individual assignment criminal justice policy process paper : individual assignment criminal justice policy process paperwrite a 1050- to 1400-word paper that describes the criminal

Lng-term debt of 14200 what is the value of the : building a balance sheet culligan inc. has current assets of 5300 net fixed assets of 26000 current liabilities of

Create a report of 3-5 pages including the following review : deliverable length3-5 pagesapa formatted referencesbecause of recent financial disasters in the news the board of

Prepare the appropriate journal entries through the : the following selected transactions relate to liabilities of united insulation corporation. uniteds fiscal year ends on

User Account

All Pages