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Travka [436]
3 years ago
5

Todd Enterprises is preparing a cash budget for the second quarter of the coming year. The following data have been forecasted:

(15 points, please label your answer in a cash budget format) ​ April ​ May Sales ………………………………………………. $150,000 ​ $157,500 Merchandise purchases …………………………… 107,000 ​ 112,400 Operating expenses: ​ ​ ​ Payroll …………………………………………. 13,600 ​ 14,280 Advertising ……………………………………. 5,400 ​ 5,700 Rent ……………………………………………. 2,500 ​ 2,500 Depreciation …………………………………… 7,500 ​ 7,500 End of April balances: ​ ​ ​ Cash ……………………………………………. 30,000 ​ ​ Bank loan payable ……………………………… 26,000 ​ ​ Additional data: (1) Sales are 40% cash and 60% credit. The collection pattern for credit sales is 50% in the month following the sale and 50% in the month thereafter. Total sales in March were $125,000. (2) Purchases are all on credit, with 40% paid in the month of purchase and 60% paid in the following month. (3) Operating expenses are paid in the month they are incurred. (4) A minimum cash balance of $25,000 is required at the end of each month. (5) Loans are used to maintain the minimum cash balance. At the end of each month, interest of 1% per month is paid on the outstanding loan balance as of the beginning of the month. Repayments are made at the end of the month if the cash balance exceeds $25,000. Prepare the company's cash budget for May. Show the ending loan balance at May 31.
Business
1 answer:
Fudgin [204]3 years ago
8 0

Answer:

The answer is attached for ready reference

Explanation:

Please note no effect for depreciation is taken as it is non cash item.

The may ending balance is having a surplus of $103,300              

Download xlsx
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The managers of Presto Pizza, a popular pizzeria in Concord, California, have been encouraging senior citizens to order takeout
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Market Development

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In a Las Vegas casino, an employee discovered a flaw in the accounting system. The accounts payable clerk discovered that he was
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In the given scenario the accounts payable clerk was able to change checks to his name in order to divert $10,000. This was only discovered by chance when an employee noticed the change in name.

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2 years ago
Given the data below for production equipment,Initial Cost, P = $50,000 Salvage Value at the end of 5 years, S = $10,000. Deprec
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Answer:

1. B. $8,000

2. C. $7,200

Explanation:

Units or production (UOP) method of depreciation bases the depreciation expense of a machine or equipment on how much it is actually used during the period.

depreciable value = $50,000 - $10,000 = $40,000

depreciation rate per unit = $40,000 / 25,000 = $1.60

Year          Projected Production units         Actual Production units

1                              4,500                                    5,000

2                             5,000                                    4,000

3                             3,500                                    3,000

4                             5,500                                    5,000

5                             6,500                                    Not known

Total                      25,000

depreciation expense year 4 = $1.60 x 5,000 = $8,000

accumulated depreciation year 4 = $1.60 x 17,000 = $27,200

book value = $50,000 - $27,200 = $22,800

if sold at $30,000, gain resulting from sale = $30,000 - $22,800 = $7,200

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