\\ (?) Unit 3 Lab Assignment- y cel WileyPLUS https://edugen.wileyplus.com/eduge
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(?) Unit 3 Lab Assignment- y cel WileyPLUS https://edugen.wileyplus.com/edugen/lti/main.uni D TJX Rewards . Login Kohls Sign In ? Sign In-Macy's Tenant Portal . Login | Sneaker Files . Sneal Davis, Managerial Accounting, 3e Heln l CALCULATOR PRINTER VERSION BACK Problem 5-35 Crane Products, a rapidly growing distributor of home gardening equipment, is formulating its plans for the coming year. Carol Jones, the firm's marketing director, has completed the following sales forecast. Sales Month Month January $903,800 July February $1,001,200 August $1,501,000 March Sales $1,501,000 $903,800 September $1,604,500 $1,252,100 November $1,501,000 Apri $1,150,300 October $1,604,500 May June $1,407,500 December $1,700,900 Philip Smith, an accountant in the Planning and Budgeting Department, is responsible for preparing the cash flow projection. He has gathered the following information. All sales are made on credit. . Crane's excellent record in accounts recevable collection s expected to continue, with 60% of bil s collected in the month * Cost of goods sold, Crane's largest expense, is estimated to equal 40% of sales dollars. Seventy percent of inventory is . All purchases are made on account. Histor cally 75% of accounts payable have been paid during the month of purchase, and . Hourly wages and fringe benefits, estimated at 30% of the current month's sales, are paid in the month incurred. after sale and the remaining 40% collected to months after the sale. purchased one month pr or to sale and 30% dun g the month of sale. For example, n Apr purchased and 70% of May cost of goods sold is purchased. 30% of Apri cost of goods sold is the remaining 25% in the month following purchase. General and administrative expenses are projected to be $1,565,600 for the year. A breakdown of the expenses follows. A expenditures are paid monthly throughout the year with the exception of property taxes, which are paid in four equal installments at the end of each quarter Salaries and fringe benefits $ 323,800 374,300 145,100 194,600 178,400 349,400 $1,565,600 Property taxes Insurance Total * Operating incomefor the first quarter of the coming years projected to be $323,100. Crane is subject to a 40% tax rate. The company pays 100% of its estimated taxes in the month following the end of each quarter. Crane maintains a minimum cash balance of $s0,000. If the cash balance is less than $50,000 at the end of the month, the company borrows against its 12% line of credit in order to mainta n the balance. All borrowings are made at the egm the month, and all repayments are made at the end of the month (in increments of $1,000), Accrued interest is paid in full with each principal repayment. The projected cash balance on April 1 is $50,300. Prepare the cash receipts budget for the second quarter. (Enter answers in necessary fields only. Leave other fields blank Do not enter o.) Cash Receipts Budget April Total Cash Receipts Media CentExplanation / Answer
Answer. Sales Budget April May June Total Sales 1,150,300.00 1,252,100.00 1,407,500.00 3,809,900.00 Schedule of Expected Cash Collections from Sales April May June Total Collection from Accounts Receivables Mar Sales 542,280.00 361,520.00 903,800.00 Apr Sales - 690,180.00 460,120.00 1,150,300.00 May Sales - - 751,260.00 751,260.00 Jun Sales - - - - Total cash Collections 542,280.00 1,051,700.00 1,211,380.00 2,805,360.00 Merchandise Purchase Budget April May June Total Budgeted Cost of Goods Sold - 40% of Sales 460,120.00 500,840.00 563,000.00 1,523,960.00 Add: Ending Inventory 488,624.00 544,352.00 589,180.00 589,180.00 Total Needs 948,744.00 1,045,192.00 1,152,180.00 2,113,140.00 Less: Beginning Inventory (430,540.00) (488,624.00) (544,352.00) (430,540.00) Required Purchases 518,204.00 556,568.00 607,828.00 1,682,600.00 Ending Inventory: Feb - 30% X $400,480 + 70% X $361,520 373,208.00 Mar - 30% X $361,520 + 70% X $460,120 430,540.00 Apr - 30% X $460,120 + 70% X 500,840 488,624.00 May - 30% X $500,840 + 70% X 563,000 544,352.00 Jun - 30% X $563,000 + 70% X $600,400 589,180.00 Schedule of Expected Cash Disbursements - Merchandise Purchases April May June Total Cash Payment March Purchases 104,713.00 104,713.00 April Purchases 388,653.00 129,551.00 518,204.00 May Purchases 417,426.00 139,142.00 556,568.00 June Purchases 455,871.00 455,871.00 Total Cash Payment to Suppliers 493,366.00 546,977.00 595,013.00 1,635,356.00 Cash budget April May June Total Beginning cash Balance 50,300.00 50,625.67 50,160.33 50,300.00 Add: Cash Collection 542,280.00 1,051,700.00 1,211,380.00 2,805,360.00 Total Cash available 592,580.00 1,102,325.67 1,261,540.33 2,855,660.00 Less: Cash Disbursements Payment For Inventory 493,366.00 546,977.00 595,013.00 1,635,356.00 Wages 345,090.00 375,630.00 422,250.00 1,142,970.00 Salaries 26,983.33 26,983.33 26,983.33 80,950.00 Advertisement 31,191.67 31,191.67 31,191.67 93,575.00 Property Taxes - - 36,275.00 36,275.00 Insurance 16,216.67 16,216.67 16,216.67 48,650.00 Utilities 14,866.67 14,866.67 14,866.67 44,600.00 Income Tax 129,240.00 - - 129,240.00 Total Cash Disbursement 1,056,954.33 1,011,865.33 1,142,796.33 3,211,616.00 Cash Excess (deficiency) (464,374.33) 90,460.33 118,744.00 (355,956.00) Minimum Cash Balance 50,000.00 50,000.00 50,000.00 50,000.00 Cash Excess (needed) (514,374.33) 40,460.33 68,744.00 (405,956.00) Finacing: Borrowings 515,000.00 - 515,000.00 Repayments - (30,000.00) (63,000.00) (93,000.00) Interest - (10,300.00) (4,850.00) (15,150.00) Ending Cash Balance 50,625.67 50,160.33 50,894.00 50,894.00
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