Solution for Ch 06 - 6-27(30 min.)Cash flow analysis,...

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Unformatted text preview: 6-27(30 min.)Cash flow analysis, chapter appendix.1.The cash that TabComp, Inc., can expect to collect during April 2006 is calculated below.April cash receipts:April cash sales ($400,000 .25)$100,000April credit card sales ($400,000 .30 .96)115,200Collections on account:March ($480,000 .45 .70)151,200February ($500,000 .45 .28)63,000January (uncollectible-not relevant)Total collections$429,4002.(a) The projected number of the MZB-33 computer hardware units that TabComp, Inc., will order on January 25, 2006, is calculated as follows.MZB-33UnitsMarch sales110Plus: Ending inventorya27Total needed137Less: Beginning inventoryb33Projected purchases in units104a0.30 90 unit sales in Aprilb0.30 110 unit sales in March(b) Selling price = $2,025,000 675 units, or for March, $330,000 110 units= $3,000 per unitPurchase price per unit, 60% $3,000$ 1,800Projected unit purchases x 104 Total MZB-33 purchases, $1,800 104$187,2003.Monthly cash budgets are prepared by companies such as TabComp, Inc., in order to plan for their cash needs. This means identifying when both excess cash and cash shortages may occur. A company needs to know when cash shortages will occur so that prior arrangements can be made with lending institutions in order to have cash available for borrowing when the company needs it. At the same time, a company should be aware of when there is excess cash available for investment or for repaying loans.6-16-28(40 min.)Budget schedules for a manufacturer.1a. Revenues BudgetExecutive LineChairman LineTotalUnits sold740390Selling price$ 1,020$ 1,600Budgeted revenues$754,800$624,000$1,378,800b.Production Budget in UnitsExecutive LineChairman LineBudgeted unit sales740390Add budgeted ending fin. goods inventory3015Total requirements770405Deduct beginning fin. goods. inventory205Budgeted production750400c.Direct Materials Usage Budget (units)OakRed OakOakLegsRed OakLegsTotalExecutive Line:1. Budgeted input per f.g. unit1642. Budgeted production7507503. Budgeted usage (1 2)12,0003,000Chairman Line:4. Budgeted input per f.g. unit2545. Budgeted production4004006. Budgeted usage (4 5)10,0001,6007. Total direct materials usage (3 + 6)12,00010,0003,0001,600Direct Materials Cost Budget 8. Beginning inventory320150100409. Unit price (FIFO)$18$23$11$1710. Cost of DM used from beginning inventory (8 9)$5,760$3,450$1,100$680$10,99011. Materials to be used from purchases (7 8)11,6809,8502,9001,56012. Cost of DM in March$20$25$12$1813. Cost of DM purchased and used in March (11 12)$233,600$246,250$34,800$28,080$542,73014. Direct materials to be used (10 + 13)$239,360$249,700$35,900$28,760$553,7206-2Direct Materials Purchases BudgetOakRed OakOakLegsRed OakLegsTotalBudgeted usage (from line 7)12,00010,0003,0001,600Add target ending inventory1922008044Total requirements12,19210,2003,0801,644Deduct beginning inventory32015010040Total DM purchases11,87210,0502,9801,604Purchase price (March)...
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This note was uploaded on 11/09/2010 for the course ACCT 301 taught by Professor Lynn during the Spring '10 term at University of Baltimore.

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Solution for Ch 06 - 6-27(30 min.)Cash flow analysis,...

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