Reference no: EM131295004
Enright Company expects to have a cash balance of $58,270 on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014.
1. Collections from customers: January $83,270, February $158,270.
2. Payments to suppliers: January $52,270, February $87,270.
3. Wages: January $31,336, February $41,336. Wages are paid in the month they are incurred.
4. Administrative expenses: January $22,336, February $25,336. These costs include depreciation of $1,000 per month. All other costs are paid as incurred.
5. Selling expenses: January $16,336, February $21,336. These costs are exclusive of depreciation. They are paid as incurred.
6. Sales of short-term investments in January are expected to realize $13,336 in cash. Enright has a line of credit at a local bank that enables it to borrow up to $25,000. The company wants to maintain a minimum monthly cash balance of $32,270.
Prepare a cash budget for January and February.
An alternative practice structure can best be described
: An alternative practice structure can best be described as: PwC's actions in their audits of Avon and Pinnacle were similar in that the SEC alleged that the firm: The KBC Solutions case deals with:
|
Consider with respect to this contemplated transaction
: Jean and Paul are equal partners in the J&P Partnership. On December 30 of the current year, the partnership agrees to liquidate Jean's partnership interest, starting this December 30th and for the following four years. What tax issues should Jean an..
|
Prepare operating activities section of statement
: Gutierrez Company reported net income of $198,760 for 2014. Gutierrez also reported depreciation expense of $45,030 and a loss of $4,850 on the disposal of equipment. Prepare the operating activities section of the statement of cash flows for 2014.
|
The group used a calendar tax year
: The Cardinal Group had filed on a consolidated basis for several years with its wholly owned subsidiary, Swallow, Inc. The group used a calendar tax year. On January 25, 2016, Heron acquired all of the stock of Cardinal, including its ownership in Sw..
|
Prepare cash budget
: Enright Company expects to have a cash balance of $58,270 on January 1, 2014. These are the relevant monthly budget data for the first two months of 2014. Prepare a cash budget for January and February.
|
Differences between accounting income and taxable income
: Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performe..
|
When revenues and expenses are recognized on the cash method
: You have a contract for $200,000. The following events occur: March 1 – the project starts March 20 – The subcontractors bill for $80,000 to the contractor Between March 1 and March 31 – 45% of the contract was completed April 10. Determine when reve..
|
When using dollar-value lifo retail method for inventory
: The second step, when using dollar-value LIFO retail method for inventory, is to determine the estimated:
|
Annual discount for deadbolts-discount for smoke detectors
: Dave and Ellen are newly married and living in their first house. The yearly premium on their homeowner’s insurance policy is $550 for the coverage they need. Their insurance company offers a 8 percent discount if they install dead-bolt locks on all ..
|