Assignment8bFacultyLabVersion

Assignment8bFacultyLabVersion - $165,000 per year Note 2:...

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# Pearson Interactive Computer Assignments (PICA) Assignment 8b Cash Budgeting Registered User Yang Xu Student Number 307198650 1 December 2011 Trial Balance (in part) Sales Information Selling price $110 Cash $12,000 debit Oct. actual $198,000 Accounts receivable $308,000 debit Nov. actual $275,000 Allowance for bad debts $17,380 credit Dec. estimated $330,000 Inventory $96,250 debit Jan. estimated $165,000 Accounts payable (for inventory purchases) $101,200 credit Feb. estimated $132,000 Year estimated $1,650,000 Note payable, 31 January, 2012 $110,000 Discount for customers paying in 1st 10 days of month after purchase 3% Percentage of billings collected within discount period 60% Inventory Information Billings collected by end of the month after sale 30% Purchase cost $77 Billings collected by end of the 2nd month after sale 6% Target end stock (units) 550 Bad debts 4% PLUS % of next month's sales 30% 50% $440,000 per year Note 1: Variable marketing costs vary in direct proportion to sales volume.
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Unformatted text preview: $165,000 per year Note 2: Fixed marketing costs occur equally throughout the year. Depreciation included in fixed portion $33,000 per year REQUIRED: Prepare a cash budget for December & January. December 2011 January 2012 Cash balance, beginning $12,000 ($6,645) Dec-11 Add receipts - collection of receivables, from customers getting discount 160,050 192,060 3000- in month after sale but no discount 82,500 99,000 1000.0000178814- in second month after sale 11,880 16,500 1250 Deduct disbursements - for current month's merchandise purchases (105,875) (54,285)- for prior month's merchandise purchases (101,200) (105,875) Jan-12- fixed marketing costs (11,000) (11,000) 2410.0000143051- variable marketing costs (55,000) (27,500) 1000.0000178814 Cash balance, ending ($6,645) $102,255 38.5 Purchases payable in month AFTER purchase Marketing cost (see Note 1) Fixed portion of marketing cost (see Note 2) Help Me Assess Me FAQs...
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This note was uploaded on 08/10/2009 for the course ACCT 2012 taught by Professor Frost during the Two '08 term at University of Sydney.

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