costaccountingCh6

costaccountingCh6 - MASTER BUDGET AND RESPONSIBILITY...

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6 - 1 CHAPTER 6 MASTER BUDGET AND RESPONSIBILITY ACCOUNTING 6-36 (30 min.) Cash budget, fill in the blanks, chapter appendix. Quarters I II III IV Year as a Whole Cash balance, beginning $ 15,000 $ 32,000 $ 15,000 $ 50,000 $ 15,000 Add receipts Collections from customers 385,000 315,000 295,000 365,000 1,360,000 Total cash available for needs 400,000 347,000 310,000 415,000 1,375,000 Deduct disbursements Direct materials 175,000 125,000 110,000 155,000 565,000 Payroll 125,000 110,000 95,000 118,000 448,000 Other costs 50,000 45,000 40,000 49,000 184,000 Interest expense (LT debt) 3,000 3,000 3,000 3,000 12,000 Machinery purchase 0 85,000 0 0 85,000 Income taxes 15,000 14,000 12,000 20,000 61,000 Total disbursements 368,000 382,000 260,000 345,000 1,355,000 Minimum cash balance desired 15,000 15,000 15,000 15,000 15,000 Total cash neded 383,000 397,000 275,000 360,000 1,370,000 Cash excess (deficiency) 17,000 (50,000) 35,000 55,000 5,000 Financing Borrowing (at beginning) 0 50,000 0 0 50,000 Repayment (at end) 0 0 0 (50,000) (50,000) Interest (at 12% per annum) 0 0 0 (4,500) (4,500) Total effects of financing 0 50,000 0 (54,500) (4,500) Cash balance, ending $ 32,000 $ 15,000 $ 50,000 $ 15,500 $ 15,500 6 - 37 (40 - 50 min.) Cash budgeting. Itami Wholesale Co. Statement of Budgeted Cash Receipts and Disbursements For the Months of December, 2001, and January, 2002 December, 2001 January, 2002 Cash balance, beginning $ 10,000 $ 2,025 Add receipts: Collections of receivables (Schedule 1) 235,900 285,800 (a) Total cash available for needs 245,900 287,825 6 - 2 Deduct disbursements: For merchandise purchases (Schedule 2) 183,875 141,750 For variable costs (Schedule 3) 50,000 25,000 For fixed costs (Schedule 3) 10,000 10,000 (b) Total disbursements 243,875 176,750 Cash balance, end of month (a – b) $ 2,025 $111,075 Enough cash should be available for repayment of the note on January 31, 2002 Schedule 1: Collections of Receivables Collections in October November December Total December $14,400 a $ 50,000 b } 171,500 c $235,900 January 20,000 d $ 60,000 e } 205,800 f $285,800 a. 0.08
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costaccountingCh6 - MASTER BUDGET AND RESPONSIBILITY...

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