Ch 7 EFILE - Chapter 7 Profit Planning Exercise 7-11(20 minutes Quarter(000 omitted 1 2 3 4 Year Cash balance beginning $ 6 $ 5 $ 5 $ 5 $ 6 Add

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Chapter 7 Profit Planning Exercise 7-11 (20 minutes) Quarter (000 omitted) 1 2 3 4 Year Cash balance, beginning............................... $ 6 * $ 5 $ 5 $ 5 $ 6 Add collections from customers..................... 65 70 96 * 92 323 * Total cash available........................................ 71 * 75 101 97 329 Less disbursements: Purchase of inventory.................................. 35 * 45 * 48 35 * 163 Selling and administrative expenses........... 28 30 * 30 * 25 113 * Equipment purchases................................. 8 * 8 * 10 * 10 36 * Dividends.................................................... 2 * 2 * 2 * 2 * 8 Total disbursements....................................... 73 85 * 90 72 320 Excess (deficiency) of cash available over disbursements............................................. (2 )* (10 ) 11 * 25 9 Financing: Borrowings.................................................. 7 15 * 22 Repayments (including interest).................. (6 ) (17 )* (23 ) Total financing................................................ 7 15 (6 ) (17 ) (1 ) Cash balance, ending.................................... $ 5 $ 5 $ 5 $ 8 $ 8 *Given. 7-1 Exercise 7-12 (30 minutes) 1. Gaeber Industries Production Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Budgeted unit sales................. 8,000 7,000 6,000 7,000 28,000 Add desired ending inventory.. 1,400 1,200 1,400 1,700 1,700 Total units needed................... 9,400 8,200 7,400 8,700 29,700 Less beginning inventory........ 1,600 1,400 1,200 1,400 1,600 Required production................ 7,800 6,800 6,200 7,300 28,100 7-2 Exercise 7-12 (continued) 2. Gaeber Industries Direct Materials Budget 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Year Required production............................ 7,800 6,800 6,200 7,300 28,100 Raw materials per unit......................... × 2 × 2 × 2 × 2 × 2 Production needs................................. 15,600 13,600 12,400 14,600 56,200 Add desired ending inventory.............. 2,720 2,480 2,920 3,140 3,140 Total needs.......................................... 18,320 16,080 15,320 17,740 59,340 Less beginning inventory..................... 3,120 2,720...
View Full Document

This note was uploaded on 02/02/2011 for the course ACCT 226 taught by Professor Smith during the Fall '10 term at South Carolina.

Page1 / 23

Ch 7 EFILE - Chapter 7 Profit Planning Exercise 7-11(20 minutes Quarter(000 omitted 1 2 3 4 Year Cash balance beginning $ 6 $ 5 $ 5 $ 5 $ 6 Add

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online