Using the template below, prepare a monthly cash budget for the last 5 months of
ID: 2720644 • Letter: U
Question
Using the template below, prepare a monthly cash budget for the last 5 months of 2014 for Helen's Fashion Designs. Only complete part a. as indicated below. Input Data Collections during month of sale 10% Collections during month after sale 75% Collections during second month after sale 15% Lease payments (monthly) $9,000 General and administrative salaries (monthly) $27,000 Depreciation charges (monthly) $36,000 Income tax payments (due in Sep & Dec) $63,000 Miscellaneous expenses (monthly) $2,700 New design studio payment (due in Oct) $180,000 Cash on hand July 1 $132,000 Minimum cash balance $90,000 Sales adjustment factor 0% Sales $180,000 $180,000 $360,000 $540,000 $720,000 $360,000 $360,000 $90,000 $180,000 Labor & raw material cost incurred (payment made one month later) $90,000 $90,000 $126,000 $882,000 $306,000 $234,000 $162,000 $90,000 a. Prepare a monthly cash budget for the last 6 months of 2014. The Cash Budget May June July August September October November December January Sales (gross) $180,000 $180,000 $360,000 $180,000 (1) Collections During month of sale 36,000 During 1st month after sale 135,000 During 2nd month after sale 27,000 Total collections $198,000 (2) Purchases and payments for labor and raw materials Purchase of labor and raw materials $90,000 $90,000 $126,000 Payments for labor and raw materials $90,000 (3) Cash gain or loss for month Total collections $198,000 Payments for labor and raw materials 90,000 General and administrative salaries 27,000 Lease payments 9,000 Miscellaneous expenses 2,700 Income tax payments Design studio payment Total payments $128,700 Net cash gain (loss) during month: Total collections - Total payments $69,300 (4) Cash surplus or loan requirement Check figures for cash from operations at start of month. $201,300 $387,600 ($65,100) $67,200 $208,500 Cash from operations at start of month $132,000 Cumulative cash (Row 50 plus Row 55) $201,300 Target cash balance $90,000 Cumulative surplus cash or loans outstanding to maintain $90,000 target cash balance $111,300 Using the template below, prepare a monthly cash budget for the last 5 months of 2014 for Helen's Fashion Designs. Only complete part a. as indicated below. Input Data Collections during month of sale 10% Collections during month after sale 75% Collections during second month after sale 15% Lease payments (monthly) $9,000 General and administrative salaries (monthly) $27,000 Depreciation charges (monthly) $36,000 Income tax payments (due in Sep & Dec) $63,000 Miscellaneous expenses (monthly) $2,700 New design studio payment (due in Oct) $180,000 Cash on hand July 1 $132,000 Minimum cash balance $90,000 Sales adjustment factor 0% Sales $180,000 $180,000 $360,000 $540,000 $720,000 $360,000 $360,000 $90,000 $180,000 Labor & raw material cost incurred (payment made one month later) $90,000 $90,000 $126,000 $882,000 $306,000 $234,000 $162,000 $90,000 a. Prepare a monthly cash budget for the last 6 months of 2014. The Cash Budget May June July August September October November December January Sales (gross) $180,000 $180,000 $360,000 $180,000 (1) Collections During month of sale 36,000 During 1st month after sale 135,000 During 2nd month after sale 27,000 Total collections $198,000 (2) Purchases and payments for labor and raw materials Purchase of labor and raw materials $90,000 $90,000 $126,000 Payments for labor and raw materials $90,000 (3) Cash gain or loss for month Total collections $198,000 Payments for labor and raw materials 90,000 General and administrative salaries 27,000 Lease payments 9,000 Miscellaneous expenses 2,700 Income tax payments Design studio payment Total payments $128,700 Net cash gain (loss) during month: Total collections - Total payments $69,300 (4) Cash surplus or loan requirement Check figures for cash from operations at start of month. $201,300 $387,600 ($65,100) $67,200 $208,500 Cash from operations at start of month $132,000 Cumulative cash (Row 50 plus Row 55) $201,300 Target cash balance $90,000 Cumulative surplus cash or loans outstanding to maintain $90,000 target cash balance $111,300Explanation / Answer
Answer:
The Cash Budget May June July August September October November December January Sales (gross) $180,000 $180,000 $360,000 540000 720000 360000 360000 90000 $180,000 (1) Collections During month of sale 36,000 54000 72000 36000 36000 9000 18000 During 1st month after sale 135,000 270,000 405,000 540,000 270,000 270,000 67,500 During 2nd month after sale 27,000 27,000 54,000 81,000 108,000 54,000 54,000 Total collections $198,000 351000 531000 657000 414000 333000 139500 (2) Purchases and payments for labor and raw materials Purchase of labor and raw materials $90,000 $90,000 $126,000 882000 306000 234000 162000 90000 Payments for labor and raw materials $90,000 $126,000 $882,000 $306,000 $234,000 $162,000 (3) Cash gain or loss for month Total collections $198,000 351000 531000 657000 414000 333000 Payments for labor and raw materials 90,000 $126,000 $882,000 $306,000 $234,000 $162,000 General and administrative salaries 27,000 27,000 27,000 27,000 27,000 27,000 Lease payments 9,000 9,000 9,000 9,000 9,000 9,000 Miscellaneous expenses 2,700 2,700 2,700 2,700 2,700 2,700 Income tax payments 63000 63000 Design studio payment 180000 Total payments $128,700 $164,700 $983,700 $524,700 $272,700 $263,700 Net cash gain (loss) during month: Total collections - Total payments $69,300 $186,300 ($452,700) $132,300 $141,300 $69,300 (4) Cash surplus or loan requirement Check figures for cash from operations at start of month. Cash from operations at start of month $132,000 111300 297600 -155100 -22800 118500 Cumulative cash (Row 50 plus Row 55) $201,300 297600 -155100 -22800 118500 187800 Target cash balance $90,000 90000 90000 90000 90000 90000 Cumulative surplus cash or loans outstanding to maintain $90,000 target cash balance $111,300 297600 -155100 -22800 118500 187800Related Questions
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