What should be the cash disbursements

Assignment Help Managerial Accounting
Reference no: EM133054221

Question - KAB Inc., a small retail store, had the following results for May. The budgets for June and July are also given.

 

May (actual)

June (budget)

July (budget)

Sales

$45,000

$46,000

$49,000

Cost of sales

$20,000

$21,000

$23,500

Gross margin

$25,000

$21,000

$21,500

Operating expenses

$19,000

$19,000

$19,000

Operating income

$5,000

$1,000

$1,500

Sales are collected 75% in the month of the sale and the balance in the month following the sale. (There are no bad debts.) The goods that are sold are purchased in the month prior to sale. Suppliers of the goods are paid in the month following the purchase. The operating expenses are paid in the month of the sale. What should be the cash disbursements during the month of June for goods purchased for resale and for operating expenses?

Reference no: EM133054221

Questions Cloud

Compute the average number of days Brown waits : During the year, Brown Corporation's average accounts receivable were $316,000. Compute the average number of days Brown waits
Description of the social media marketing activities : Choose a business (B2C or B2B) or nonprofit organization that could benefit from a social media campaign and develop a campaign outline.
Depreciation and facilities capital cost of money : Explain the difference between depreciation and facilities capital cost of money. Why would a company want to include facilities capital cost of money as an all
Define privacy from information systems perspective : Define "Privacy" from an Information Systems (IS) perspective.
What should be the cash disbursements : What should be the cash disbursements during the month of June for goods purchased for resale and for operating expenses
Retention management and talent management : What actions can you complete in the next month to build your resilience - Search the internet and find consulting for succession planning, retention management
Identify five broad types of industry players : Identify five broad types of industry players in the global pharmaceutical industry. Describe the strategic choices made by Sanofi from 2008 onwards and comment
Six sigma continuous improvement : "Spa-like amenities to increase market share." Is it possible for every hospital to achieve this? What would be the challenges from the perspective of the admin
Determine the company sales mix : Faune Furniture Co. consists of two divisions, Bedroom Division and Dining Room Division. Determine the company sales mix

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Compute for each year the accounts receivable turnover

Compute for each year the accounts receivable turnover. At the end of 2015, accounts receivable was $480,000. (Round answers to 1 decimal place)

  Compute the labor price and quantity variances

Compute the labor price and quantity variances, assuming the standard is 3.90 hours of direct labor at $13.50 per hour. Compute the labor price .

  Determine the amount of cash received from customers

Determine the amount of cash received from customers for each of the six independent situations below. All dollars are in millions.

  Compute the exponential smoothing value for the time series

Compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 7. Round your answers to two decimal places.

  Fixed- and variable- cost pools

Suppose one predetermined rate per copy was used to allocate all photocopy costs. What rate would be used and how much cost would be allocated to the Public Works Department in August?

  Find what was paper division net operating income last year

Information relates to last year's operations at the Paper Division of Germane Corporation.What was the Paper Division's net operating income last year?

  Which business transactions are impacted on income statement

Which business transactions are impacted on income statement, balance sheet and statement of cash flow when you are using the accrual accounting method

  Determine the profitability of the gamma co

Determine the profitability of the Gamma Co Profitability as the percentage profit margin? Nimoy, Inc. is contemplating the use of a CPM system.

  Steps in operating budget process

Discuss the most important steps in the operating budget process. Why are these more important than the other steps?

  What would be the budgeted amount for direct labor costs

What would be the budgeted amount for Direct Labor costs for the year if we expect to use 500 hours in the first six months and 600 hours

  Determine the cash outflow for the purchase of land during

a. Determine the cash outflow for the purchase of land during 2013.

  Provide one example of a financial accounting report

Provide one example of a financial accounting report and two examples of managerial accounting reports that Maria might request.

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