Prepare the functional budgets and a cash budget

Assignment Help Accounting Basics
Reference no: EM133189109

Question - Tutti Fruiti plc manufactures ice-cream machine paddles and sells to one retailer. The following information has been compiled for the preparation of the budget for the next financial year.

Expected sales are 40,000 paddles at a selling price of £35. All sales are on credit.

Each paddle requires 0.3 square metres of plastic. Assume no other raw materials are needed.

The plastic is expected to cost £2 per square metre.

The manufacture of the paddle requires 0.2 hours of machine time at a cost of £6 per hour.

The production process has the following overhead costs

Production salaries £120,000

Other factory operating expenses £60,000

Tutti Fruiti plc maintains an inventory of finished goods, which, at the start of the year, was 2,000 paddles. This is expected to increase to 2,800 at the end of the year.

An inventory of plastic is also kept which, at the start of the year, was 200 metres. This is expected to increase to 300 metres at the end of the year.

Administration and selling overhead expenses are expected to be £78,000.

The balance sheet at the start of the year is expected to include the following:

Trade receivables £22,000

Trade payables £21,000

Cash at bank £6,000

Trade receivables at the end of the year are expected to be £21,200.

Closing trade payables are expected to be £23,500.

Required - Prepare the functional budgets and a cash budget.

Reference no: EM133189109

Questions Cloud

What are the associated cash flows for the project : A company is able to sell 50 000 cans of deodorant per year for the next three years at a price of R4.00 per can. What are the associated cash flows for project
Prepare a contribution margin income statement : Fixed operating expenses in total for the year $75,000. Prepare a contribution margin income statement
Produce brochure detailing your services as a marketing firm : You are going produce a brochure detailing your services as a marketing firm,Your firms strongest point is conducting market research
How many child tax credits may the parents claim : T was a high school freshman and had no income during the year. How many child tax credits may the parents claim on their joint tax return
Prepare the functional budgets and a cash budget : Tutti Fruiti plc maintains an inventory of finished goods, which, at the start of the year, was 2,000 paddles. Prepare the functional budgets and a cash budget
What is the cash provided : Depreciation Expense $12,000 Cash Payment of Dividends $3,000. What is the Cash provided or (used) from Hi-Tech's Financing Activities
Determine the percentage of sales revenue provided : Determine the percentage of sales revenue provided by each division: Rooms division $2,000,000, Foodservice division $850,000, Beverage division $395,000
Provide one example of a virtual network : Provide one example of a virtual network and describe how using the virtual network could increase NewSky Services collaborative activities
Compute Blue Sky US income tax liability : Foreign income taxes paid amounted to $35,000. Blue Sky's U.S. income tax liability is $147,000. Compute Blue Sky's U.S. income tax liability

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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