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Advocard [28]
3 years ago
10

The accounts payable account is listed in the chart of accounts as an asset. True False

Business
1 answer:
mafiozo [28]3 years ago
6 0

Answer:

False

Explanation:

Payables are payment the business is expected to make. Money comes from the company and goes to third parties. Payables represent goods and services obtained from suppliers, but payments have not been made. They are debts that the business owes others.

Because payables are money that the business owes others, they are listed as liabilities. Liabilities are the debts that a business acquires as it engages in its regular activities. Assets are the items of value that a business own. Payables are not assets as they are financial obligations the company is expected to meet.

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The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash budget for the next three months. You are p
Rina8888 [55]

Answer:

Bridgeport Housewares Inc.

1. Monthly Cash Budget with supporting schedules for September, October, and November:

a. Cash Budget for September, October, and November:

                                                        September      October     November

Beginning balance                           $40,000      $111,0000      $137,500

Cash receipts                                   253,000       259,500        288,000

Total cash available                       $293,000     $370,500     $425,500

Cash Payments:

Payment for manufacturing costs   140,000       130,000        135,000              

Income tax                                                              55,000

Dividend                                                                                      25,000

Selling & administrative expenses   42,000        48,000          51,000

Capital expenditures                                _                    _       200,000

Total cash payment                      $182,000    $233,000      $411,000

Balance                                           $111,000     $137,500       $14,500

Minimum Cash Balance                  50,000        50,000         50,000

Cash to invest or borrow              $61,000      $87,500      -$35,500

b. Supporting Schedules:

i) Cash Collections:

                                                        September      October     November

10% Cash Sales, month of sales       $25,000     $30,000       $31,500

Sales on account: 90%

70% following month of sales                               157,500        189,000

30% 2nd month following sale                                                    67,500

30% of July Sales                                60,000

70% of August                                    168,000

30% of August                                                        72,000

Total cash receipts                         $253,000  $259,500     $288,000

2. The budget indicates that the minimum cash balance (will or will not) be maintained in November.  This situation can be corrected by (investing or borrowing) and/or by the (purchase or sale) of the marketable securities, if they are held for such purposes.  At the end of September and October, the cash balance will (exceed or be sort of) the minimum desired balance.

Explanation:

a) Data and Calculations:

1. Budget Information:

                                                        September      October     November

Sales                                                 $250,000    $300,000      $315,000

Manufacturing costs                           150,000       180,000        185,000

Selling and administrative expenses  42,000         48,000          51,000

Capital expenditures                                _                    _           200,000

2. Cash Collections:

                                                        September      October     November

10% Cash Sales, month of sales       $25,000     $30,000       $31,500

Sales on account: 90%

70% following month of sales                               157,500        189,000

30% 2nd month following sale                                                    67,500

30% of July Sales                                60,000

70% of August                                    168,000

30% of August                                                        72,000

Total cash receipts                         $253,000  $259,500     $288,000

3. Manufacturing Costs:

Manufacturing costs                           150,000       180,000        185,000

less Depreciation, insurance, &

property tax expenses                       50,000        50,000          50,000

Remainder                                          100,000       130,000        135,000

4. Remainder of Manufacturing costs:

80% paid in the month incurred        80,000       104,000        108,000

Remainder 20%, month following     20,000        26,000         27,000

August manufacturing cost:              40,000

Payment for manufacturing costs $140,000     $130,000     $135,000

5. Cash Payments:

Payment for manufacturing costs   140,000       130,000        135,000              

Income tax                                                              55,000

Dividend                                                                                      25,000

Selling & administrative expenses   42,000        48,000          51,000

Capital expenditures                                _                    _       200,000

Total cash payment                      $182,000    $233,000      $411,000

Other relevant information:

Current assets as of September 1:

Cash of $40,000

Marketable securities of $75,000

Accounts receivable of $300,000 ($60,000 from July sales and $240,000 from August sales). Sales on account for July and August were $200,000 and $240,000, respectively

Current Liabilities:

September 1 Accounts payable = $40,000 incurred in August for manufacturing costs.

Selling and administrative expenses are paid in cash in the period they are incurred.

Income tax = $55,000 October

Quarterly Dividend of $25,000 in November

Minimum cash balance of $50,000 monthly

b) When Bridgeport Housewares Inc prepares budgeted monthly cash budgets, important highlights are indicated.  For instance, it becomes easier for the management of Bridgeport to know when to borrow cash to meet the minimum cash balance or in the alternative sell off some marketable securities.  It is also easier for Bridgeport to understand that it can be having excess cash which should not be allowed to sit idle, but can be invested in marketable securities.  The cash budgets and their preparation also help Bridgeport to be better prepared to exert the required efforts to generate sales revenue in order not to jeopardize its liquidity position.  It can also help Bridgeport to understand that the capital expenditure could have been paid for instalmentally starting from September or so instead of lumping the sum in November.  There are many other insights garnered from the cash budgets and their preparation.

8 0
2 years ago
Updating procedures and systems, reinforcing marketing strategies, and updating advertising techniques, are all examples of what
Travka [436]

An operational change is an exchange inside the structure of your corporation. That could be a reorganization, layoffs, or just a group alternate daily a strategic or task declaration trade. Operational changes are a number of the roughest in your personnel due to the fact they by no means quite understand daily.

Change is basically a variation within the common manner of doing things. every time people carry out a venture in a sure way, they get accustomed to them. They expand strategies which they could put into effect mechanically every day to reap those tasks. Any variation in those strategies is not anything however change.

An alternate is a venture, initiative, or solution being added to the agency to improve the manner work gets accomplished, clear up a problem, or take benefit of a possibility. Almost any project, initiative, or solution that improves a company will affect how employees do their work.

Learn more about the corporation here: brainly.com/question/24448358

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8 0
1 year ago
In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to wh
kobusy [5.1K]

Answer:

Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory

Explanation:

Cost of goods sold is the total direct costs of producing the goods sold by a company.

Cost of goods sold = cost of direct materials + cost of direct labour + Manufacturing Overhead  + Beginning work in process inventory – Ending work in process inventory

7 0
3 years ago
The tax rates are as shown. taxable income tax rate $0 – 50,000 15% 50,001 – 75,000 25% 75,001 – 100,000 34% 100,001 – 335,000 3
Goshia [24]
To get the answer, first you have to identify at which rate is your taxable income falls. From the rage of <span>100,001 – 335,000, it have 39%. Then you will just simple multiply it.
Income x 0.39 = tax rate
the answer is </span><span>$</span>50,510.07.
3 0
3 years ago
A company employing a _______ strategy would create a new product targeted to its current customers.
OLEGan [10]

A company employing a product development strategy would create a new product targeted to its current customers.

What is New Product Development ?

You can get the people in your division to come up with ideas for new products by following the given things mainly which revolves around reinforcing the novel ideas:

  • As employees have direct contact with the customers so they have the better ideas about the customers needs and wants.
  • Employees are well aware of the changing trends so they should be encourage to come up with the new and novel ideas for the new products.
  • Ideas can come from any where, from any level of the organization so each and every single employee should be motivated to participate in idea generation activities.

The importance of doing customer research is to have a drive for new product development. A research can be effective in pointing out consumer trends and fads, as well as opening a direct customer communication channel that feels prestigious for having its requests valued by a company. Through concrete data of potential customers and new customers, an organization has the ability to meet the actual demand of potential customers and make possible adjustments to the production process.

Learn more about New Product Development on:

brainly.com/question/15080666

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6 0
1 year ago
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