Prepare schedule for each month showing budgeted cash

Assignment Help Managerial Accounting
Reference no: EM132804615

Problem - Towels Incorporated has projected sales and production in units for the fourth quarter of the coming year as follows:

 

October

November

December

Sales

55,000

45,000

65,000

Production

65,000

55,000

55,000

Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they are incurred and the balance in the following month. Selling and administrative expenses will amount to $110,000 per month. The accounts payable balance on September 30th totals $193,000, which will be paid in October.

All units are sold on account for $16 each. Cash collections from sales are budgeted at 60% in the month of sale, 30% in the month following the month of sale, and the remaining 10% in the second month following the month of sale. Accounts receivable on October 1st totaled $520,000 ($100,000 from August sales and the remainder from September).

Required -

a) Prepare a schedule for each month showing budgeted cash disbursements for Towels Incorporated.

b) Prepare a schedule for each month showing budgeted cash receipts for Towels Incorporated.

Reference no: EM132804615

Questions Cloud

Compare the company performance against the prior year : Compare the company's performance against the prior year performance Hint: Use Du Pont Analysis. Merveille Investments has completed their 2020 financial year
What is the role played by the clearinghouse : What is the role played by the clearinghouse in a futures market? Explain.
Create digital brochure to be introduced at curriculum night : Create a digital brochure to be introduced at curriculum night to promote literacy in the home as well as a resource for families and the community to inform.
Theory of the term structure of interest rates : Explain why there is an inbuilt upward bias in the yield curve according to the liquidity premium theory of the term structure of interest rates.
Prepare schedule for each month showing budgeted cash : Accounts receivable on October 1st totaled $520,000. Prepare a schedule for each month showing budgeted cash disbursements for Towels Incorporated
Solve price per hour that north dakota temp should charge : North Dakota Temps, a large labor? contractor, Calculate the price per hour that North Dakota Temps should charge based on? Mason's proposal.
What is the yield to maturity : The bonds have a par value of $1,000 and a market price of $1,022. Interest is paid semiannually. What is the yield to maturity?
What is the value of equity for the company : Company is about to launch a new product. Depending on the success of the new product, Assume that Company is all equity financed. What is the value of equity?
Determine first net swap payment : Given the normal yield curve, would the fixed rate payer in a plan vanilla swap expect to pay or receive the first net swap payment. Why?

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Variable overhead efficiency variance

Compute the variable overhead rate variance, variable overhead efficiency variance, fixed overhead budget variance, and fixed overhead volume variances

  Explain what the large amount of sales returns

Explain what the large amount of sales returns and allowances suggest that Bill Slick might have done. Determine how Yancy could protect itself from a manager who behaved as Bill Slick did.

  Calculate the actual profit for january and february

Calculate the actual profit for January and February using absorption costing. You should assume that any under / over absorption of fixed overheads is debited

  Compute what is the total revenue at the desired profit

Compute what is the total revenue at the desired profit needed for Sky High? If the management wants to achieve a desired profit of $100,000

  What was the amount of cash payments to stockholders

The board of directors declared cash dividends totaling $1,200,000 during the current year. What was the amount of cash payments to stockholders

  Express the total cost behaviour in formula form

Brisbane Indoor Sports, Express the total cost behaviour in formula form (Y = a + bx). What is the variable electricity cost per hour of operation?

  Analyse the roles of cost and management

ACC702 PG - Managerial Accounting Group Report: Performance measures, remuneration and motivation. Analyse the roles of cost and management

  Calculate the return on investment for each division

What is the residual income for each division if the required rate of return is 13%? Calculate the return on investment for each division.

  How do compute winslow manufacturing overhead budget

Its variable overhead is approximately 19 percent of sales, and fixed overhead costs.Compute Winslow's manufacturing overhead budget for the first two quarters.

  Find how would decision change if the outside firm charges

Find How would your decision change if the outside firm charges the Technological Division $36 per unit of the component similar to the SB227?

  How to prepare the end of the month application

How to prepare the end of the month application General Journal entry (without explanation) of factory overhead for Job 2-1 for the month.

  What is the relevant cost per unit

What is the relevant cost per unit? What do you think the minimum short-term bid price per unit should be? What would be the impact on short-term operating

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