Quarterly cash payments budget, Financial Accounting

Assignment Help:

Emily Jackson, RSC Designs management accountant, is in charge of preparing the master budget for 2013.  She has gathered the following information:

1. Annual profit for the 2012/2013 financial year is expected to be the sum of  each group members RMIT student number.  The split (anticipated sales mix)  between SML Sculptures and LGE Sculptures is for every 3 LGE sculptures sold 2 SML Sculptures will be sold.  Forty percent (40%) of the total sales (of each product) will occur in the first 6 months of the financial year and the remaining sixty percent (60%) will occur in the remaining six months. 

Expected sales for the final quarter of 2012 are expected to be 15,000 units of the SML Sculptures and 23,000 of the LGE Sculptures.

2. RSC Designs' sales history indicates that 40 percent of all sales are on credit, with the remainder of the sales being on a cash basis.  The company's collection experience shows that 60 percent of the credit sales are collected during the quarter in which the sale is made, while the remaining 40 percent is collected in the following quarter.  (For simplicity, assume the company is able to collect 100 percent of its accounts receivable.)

3. The SML sculpture has a selling price of $45 per unit, and the LGE sculpture has a selling price of $75 per unit.  These prices are expected to hold constant throughout the 2012/2013 financial year.  

4. The production manager attempts to end each quarter with enough finished - goods inventory in each product line to cover 20 percent of the following  quarter's sales.  Moreover, an attempt is made to end each quarter with 20 percent of the glass sheets needed for the following quarter's production.  As the metal strips are purchased locally the company buys them on a just-in-time
basis, and as a result the inventory is negligible.

5. All direct material purchases are made on credit, with 80 percent of each quarter's credit purchases being paid in cash during the same quarter as the purchase.  The remaining 20 percent is paid in the next quarter.

6. Indirect materials are purchased on a cash basis as needed.  Work-in-process is negligible.


Related Discussions:- Quarterly cash payments budget

State the term - regulations, State the term - Regulations Financial acc...

State the term - Regulations Financial accounting reports, for numerous businesses, are subject to accounting regulations which try to make sure they are produced with standard

Evlaute expected value of sales volume, Q. Evlaute Expected value of sales ...

Q. Evlaute Expected value of sales volume? (17500 × 0·3) + (20000 × 0·6) + (22500 × 0·1) = 19500 units Expected NPV = (((19500 × 1·35) - 10000) × 3·605) - 50000 = $8852 W

Case law & study, I need help with a mini accounting project. Here is a lin...

I need help with a mini accounting project. Here is a link to the questions I need answers to. Read the questions and instructions and if you think you can complete the case within

What do you understand by exempt organization, Q. What do you understand by...

Q. What do you understand by Exempt Organization? Exempt Organization - Organization that is normally exempt from paying federal income tax. Exempt organizations comprise relig

Compute the npv of the cash flows, Ace Company has a 30 percent marginal ta...

Ace Company has a 30 percent marginal tax rate and uses a 12% discount rate to compute NPV. The firm started a venture that will yield the following before-tax cash flows: year 0,

Account, list and explain the stages where the errors are deducted for rect...

list and explain the stages where the errors are deducted for rectification.

Various types of accounting changes can affect the financial, Various types...

Various types of accounting changes can affect the financial statements of a business enterprise differently. Assume that the following list describes changes that have a material

Describe about trade test, Q. Describe about Trade Test? With a view of...

Q. Describe about Trade Test? With a view of perform the work in a trade an artisan staff should have the skill required for the trade and for this Railway workers classificati

Google, how do i find info about google inc

how do i find info about google inc

Write Your Message!

Captcha
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