Prepare Gipit Company cash budget for the quarter ended June

Assignment Help Managerial Accounting
Reference no: EM132786090

Question - At the end of the current month, Gipit Company expects to have a cash balance of 25,000. For the next three months, it expects to generate sales as follows:

April 88,000

May 95,000

June 74,000

The company sells its goods on cash basis only. Aside from its income from the sale of goods, the company also earns rental income of 20,000 per month from the commercial spaces that it lets to a number of tenants.

Gipit's operating expenses amount to 40% of its gross revenue. All expenses are paid in the month they are incurred. Non-cash expenses such as depreciation and amortization amount to 30,000 per month.

Required - Prepare Gipit Company's cash budget for the quarter ended June 30, with details shown for each month.

Reference no: EM132786090

Questions Cloud

Discuss the characteristics of all three periods : Compare and discuss the differences in the way vocal music was a song in all three periods. Include your understanding of the varied styles of choral music.
Prepare the production budgets and schedule for the year : On January the company FSP showed $81 500 in account payable for raw materials purchase. Prepare the production budgets and schedule for the year
Approximate present value of human capital : What is the approximate present value of her human capital on her 30 th birthday?
How would respond if the child is a toddler or a preschooler : How would you respond if the child is a toddler or a preschooler? Using this scenario provide an informed response for each age group that is based on the role
Prepare Gipit Company cash budget for the quarter ended June : Gipit's operating expenses amount to 40% of its gross revenue. Prepare Gipit Company cash budget for the quarter ended June
Affordable care act includes tax on high-cost insurance plan : Though Health benefits have traditionally not been taxed, the Affordable Care Act includes a tax on high-cost insurance plans (effective in 2018).
What stuck with you and what have you let go : Think about your early years of education (elementary through high school) and identify that which influenced and/or impacted you. Consider your family life.
Illustrating the initial equilibrium and the new equilibrium : Consider the market for soft drinks that is initially in equilibrium with a market price of P1 and a market quantity of Q1. Suppose there is a successful
Does mass media promote images of equality : Does mass media promote images of equality by leveling racial, ethnic, and gender differences or do they promote inequality through exclusion and exaggeration

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

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!

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