Wooly rug company production budget for the months of

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Wooly Rug Company Production Budget For the Months of July, August, & September, 2014 July August September Budgeted production - sq. yards 182,000 164,000 148,000 Wooly Rug Company Purchases Budget For the Months of July & August, 2014 July August Purchases in pounds 756,000 796,000 Correct Marks for this submission: 5.00/5.00. Support Support Support
QUESTION 4 Correct 4.00 points out of 4.00 Cash Receipts The sales budget for Perrier Inc. is forecasted as follows: Month Sales Revenue May $ 120,000 June 160,000 July 180,000 August 120,000 To prepare a cash budget, the company must determine the budgeted cash collections from sales. Historically, the following trend has been established regarding cash collection of sales: 50 percent in the month of sale. 25 percent in the month following sale. 20 percent in the second month following sale. 5 percent uncollectible. The company gives a 2 percent cash discount for payments made by customers during the month of sale. The accounts receivable balance on April 30 is $24,000, of which $7,000 represents uncollected March sales and $17,000 represents uncollected April sales. Prepare a schedule of budgeted cash collections from sales for May, June, and July. Include a three-month summary of estimated cash collections. Perrier, Inc. Schedule of Budgeted Cash Collections Quarterly by Months May June July Total Total Cash receipts: $ 72,900 $ 115,200 $ 152,200 $ 340,300 Correct Marks for this submission: 4.00/4.00. Support Support Support Support
QUESTION 5 Correct 8.00 points out of 8.00 Cash Disbursements Assume that Waycross Manufacturing manages its cash flow from its home office. Waycross controls cash disbursements by category and month. In setting its budget for the next six months, beginning in July, it used the following managerial guidelines: Category Guidelines Purchases Pay half in current and half in following month. Payroll Pay 70 percent in current month and 30 percent in following month. Loan Payments Pay total amount due each month. Predicted activity for selected months follow: Category May June July August Purchases $ 30,000 $ 44,000 $ 49,000 $ 55,000 Payroll 100,000 110,000 120,000 100,000 Loan payments 10,000 10,000 15,000 15,000 Prepare a schedule showing cash disbursements by account for July and August.
Correct Marks for this submission: 8.00/8.00. Support Support Support Support Support
QUESTION 6 Correct 18.00 points out of 18.00 Cash Budget The Peoria Supply Company sells for $30 one product that it purchases for $20. Budgeted sales in total dollars for next year are $720,000. The sales information needed for preparing the July budget follows: Month Sales Revenue May $ 30,000 June 42,000 July 51,000 August 54,000 Account balances at July 1 include these: Cash $ 20,000 Merchandise inventory 18,000 Accounts receivable (sales) 23,000 Accounts payable (purchases) 12,000 The company pays for one-half of its purchases in the month of purchase and the remainder in the following month. End-of-month inventory must be 50 percent of the budgeted sales in units for the next month. A 2 percent cash discount on sales is allowed if payment is made during the

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