FINC 577 Chapter 9 Notes Outline

8 estimated annual income taxes equal payment each

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Unformatted text preview: annual income taxes: Equal payment each quarter. (9) Loans: Pay in earliest quarter with sufficient cash (i.e., cash on Chapter 9-36 hand exceeds the $15,000 minimum required balance) plus $100 in interest. Financial Financial Budgets: Cash Budget Example – Hayes Company Usually prepare schedule of collections from customers. Chapter 9-37 Financial Budgets: Cash Budget Example – Hayes Company Prepare schedule of cash payments for direct materials. Now prepare the Cash Budget based on the assumptions and preceding schedules. Chapter 9-38 Financial Financial Budgets: Cash Budget Chapter 9-39 Financial Budgets: Cash Budget Contributes to more effective cash management. Shows managers the need for additional financing before actual need arises. Indicates when excess cash will be available. Chapter 9-40 Financial Financial Budgets: Budgeted Balance Sheet A projection of financial position at the end of end the the budgeted period. Developed from the budgeted balance sheet for the preceding year and the budgets for the current year. Chapter 9-41 Financial Budgets: Budgeted Balance Sheet Additional data: Chapter 9-42 Financial Financial Budgets: Budgeted Balance Sheet Chapter 9-43 Example 1 Mussatto Company estimates that unit sales will be 10,000 in quarter 1; 12,000 in quarter 2; 14,000 in quarter 3; and 18,000 in quarter 4. Using a sales price $80 th s s of $80 per unit, prepare the sales budget by quarters for for the year ending December 31, 2011. Chapter 9-44 Example Examp...
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This document was uploaded on 01/19/2014.

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