PR 21-4B - Problem 21(7-4B Name Section Score 97 Key Code[Key code here Instructions Answers are entered in the cells with gray backgrounds Cells

# PR 21-4B - Problem 21(7-4B Name Section Score 97 Key...

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Problem 21(7)-4B Name: Section: Score: 97% Key Code: [Key code here] Answers are entered in the cells with gray backgrounds. Cells with non-gray backgrounds are protected and cannot be edited. An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. Enter a zero in cells you would otherwise leave blank. 1. Mercury Shoes Inc. Cash Budget For the Three Months Ending August 31 June July August Estimated cash receipts from: Cash sales \$ 16,000 \$ 18,500 \$ 20,000 Collections from accounts receivable 138,000 146,400 157,500 Total cash receipts \$ 154,000 \$ 164,900 \$ 177,500 Estimated cash payments for: Manufacturing costs \$ 56,200 \$ 66,800 \$ 88,400 Selling and administrative expenses 40,000 46,000 51,000 Capital expenditures - - 120,000 Other purposes: Income tax - 24,000 - Dividends - - 15,000 Total cash payments \$ 96,200 \$ 136,800 \$ 274,400 Cash increase (decrease) \$ 57,800 \$ 28,100 \$ (96,900) Cash balance at beginning of month 42,000 99,800 127,900 Instructions
Cash balance at end of month \$ 99,800 \$ 127,900 \$ 31,000 Minimum cash balance 40,000 40,000 40,000 Excess (deficiency) \$ 59,800 \$ 87,900 \$ (9,000) Supporting calculations: Collections of accounts receivable: Sales on Account Percentage June July April sales \$ 120,000 40% \$ 48,000 \$ - May sales: Collected in June 150,000 60% 90,000 - Collected in July 150,000 40% - 60,000 June sales: Collected in July - * 60% - 86,400 Collected in August - * 40% - - July sales 420,000 * 60% - - \$ 138,000 \$ 146,400 Payments for manufacturing costs: Costs on Account Percentage Payments Paid in June: Incurred in May \$ 13,000 Incurred in June 54,000 80% 43,200 Total \$ 56,200 Paid in July: Incurred in June 54,000 20% \$ 10,800 Incurred in July 70,000 80% 56,000 Total \$ 66,800 Paid in August:
Incurred in July 70,000 20% \$ 14,000 Incurred in August 93,000 80% 74,400 Total \$ 88,400
August \$ - - - - 57,600 99,900 \$ 157,500